Microsoft announces purchase of Yammer

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Microsoft announces purchase of Yammer for $ 1.2 billion

Microsoft has agreed to acquire Yammer, a maker of software for social networking -based enterprise in the cloud (ESN), for $ 1.2 billion in cash.

Yammer, founded in 2008, will continue to have the CEO David Sacks, and will be part of Microsoft’s Office business, led by President Kurt DelBene, Microsoft said.

The ESN of Yammer software offers functions similar to that of Facebook and Twitter for use in the workplace, including employee profiles, activity streams, discussion forums, microblogs, wikis, software for generating ideas, sharing and editing documents and as classification, marking and content review.

 ESN become popular in recent years as tools that, when properly implemented, can improve the way employees collaborate and communicate, complementing traditional applications such as email and instant messaging.

Yammer’s competitors include Jive Software, NewsGator, Socialtext and Tibbr. In addition to experts like Yammer ESN, large software vendors are also adding features to their ESN business suites, including IBM , Oracle, and Cisco.

With Yammer software, Microsoft has put in place to improve the capabilities of ESN in products such as Office, SharePoint and Lync, an area where Microsoft is behind competitors.

In its announcement, Microsoft did not give details of how it could integrate the acquired company’s technology to their products.

The Yammer software is used by more than 5 million business users and more than 85% of Fortune 500 companies. She offers a free basic version of its software, and three based on signatures. 

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