The speculation around whether Microsoft will acquire Yammer or it will fail to impress the “Facebook of workplace” has come to a halt, or at least this is what a JessicaE. Vascellaro and Shira Ovide of Wall Street Journal has to say. As reported by the afore mentioned reporters, Yammer Inc., has agreed to sell itself to Microsoft for $1.2 billion.
If this comes to be true, it will be the second big-ticket purchase of the big MS in the recent months after Skype, which Microsoft acquired for $8.9 billion.
For those who have not heard of Yammer, it is a tool that allows companies to create private social networks within the company, which Microsoft will eye to include in its flagship office suite.
Yammer acquisition will help Microsoft blunt the threats, to some extent, that it faces from small software companies which eye to make workplace more interactive and social. Companies like Dropbox, Box, BaseCamp, and Jive, etc., are the ones close to real threats to the dominance of MS Office, which has recorded a 6.4% increase in the recent times.
In the nine-month period ending on 31st March, the office division of the Redmond-based company has posted revenue of $17.7 billion, which is 6.4% more than the revenue in the previous year, when the office suite has fetched $16.6 billion for the software giant.
Although, the latest versions of MS Office suite has a social feature called SharePoint, which is similar to Yammer, it is not the feature used frequently by companies or users to create real-time sharing and interactivity.
As posted on Yammer’s website as part of product description, “Yammer brings the power of social networking to the enterprise in a private and secure environment. Yammer is as easy to use as great consumer software like Facebook and Twitter, but designed for business collaboration. Connect people, content, and conversations across all of your business applications with productivity software that employees love to use.”
The inclusion of Yammer in Office suite will make the product more powerful, which is already a category leader and responsible for half of the revenue earned by the parent company. MS Office has been the leader for decades despite competition from low-cost as well as free office suites from likes of Google, and Sun. This acquisition will strengthen MS’s fort and will allow it to stay on the top of the category.
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