Recently, Microsoft acquired Yammer, a a cloud- based software and maker of ESN (Enterprise Social Networking). This has been a four weeks deal according to some sources and the deal has now been settled at a cost of US $ 1.2 Billon cash in hand. The good news is that the administration of Yammer remains intact with its CEO David Sacks remaining at the helm of Yammer. Yammer is now under Microsoft but the question is Why should Microsoft spend so much on the acquisition of Yammer?
This is a sensible question because it serves as both rhetoric and one that calls for an answer. Apparently, Yammer is an independently successful organization and Microsoft hoped that bringing it under its umbrella will help boost Microsoft’s position. You will find that there is more economical sense in buying an ESN making company at the figure mentioned above, compared to starting such an establishment from scratch. Microsoft expects Yammer to become massive, boost its workforce expertise, and enjoy the resources in its current set up.
Yammer as an ESN software-making household of Microsoft
ESN is a platform that is similar to the popular social networks like Twitter. The ESN communication workplace and cloud-based software can:
– Enable you to view employees’ profiles.
– Enable Activity Streaming
– Enable Discussions forums.
– Micro blogging
– Be used as an Idea Generation Software
– Be used for Document sharing
– Enable editing documents, tagging, reviewing, and rating
According to IDC, the Yammer’s growth speculation by 2016 is $4.6 Billion. Acquiring Yammer is therefore a good decision for Microsoft since it puts the company in a better competitive position. There are companies like Sociatext, Tibbr and Jive Software who compete stiffly with Microsoft. Other companies like IBM and Oracle are tougher competitors since they have the ENS system integrated into their products. The new acquisition puts Microsoft in a better competitive advantage.
ENS helps in improving organizational communication as well as brings together their members and builds relationships as they work together. Therefore, it appears that Microsoft has made a move in the right direction.
What do you think about Microsoft’s acquisition of Yammer? Share your thoughts in the comments section.
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