Whipping out $1.2 Billion in cash, Microsoft has just confirmed their definite move to purchase Yammer, the 2008-launched social network for enterprises that offers free networking services and paid upgrades to its members. The acquisition brings to Microsoft the rest of the Yammer Team, including Yammer CEO David Sacks. The enterprise social network will form part of the Microsoft Office Division.
Through Microsoft’s published news release, CEO Steve Ballmer discussed briefly about the acquisition. Ballmer said that the acquisition reflects Microsoft’s commitment to bring technologies to businesses and people. With Yammer’s highly secure and intuitive enterprise social networking offerings, Ballmer believes this acquisition will serve as a valuable complement to Microsoft’s existing cloud services.
Yammer’s CEO David Sacks also spoke about the acquisition, adding that his company has always worked on a bigger vision, beginning the time it was first launched. This vision had included making social networking actually work for businesses and companies. This move to work with Microsoft, said Sacks, will help realize that vision and make available the expertise, technologies and resources they need to further their innovation.
During a conference call with Microsoft CEO Steve Ballmer and the rest of the top-management team, Ballmer explained further why his company decided to acquire Yammer. More than the products, employees and technologies of Yammer, Ballmer said he finds its viral adoption model just as valuable. This viral adoption model points to the ability of individuals to make use of the products on their own at first and eventually to entice their respective IT departments to apply for premium management tools.
President of Microsoft Office Division Kurt Delbene believes Yammer may be integrated successfully into Office 365, SharePoint, Skype and Dynamics.
No details on any specific products plans have been disclosed by Microsoft and Yammer yet, although these are currently in the works.