Microsoft Acquires Yammer: A Biggest Move Of The World’s Largest Software Giant Into Social Networking Platform


Undoubtedly, social networking platform has become one of the prominent media for enterprises to explore themselves. That’s why, the world’s big tech companies are focusing on the social media for  the proliferation of their business. Now, Microsoft has acquired enterprise social network service “Yammer” (was founded in 2008) for $1.2 billion. In this way, Yammer is Microsoft’s second largest deal after Skype, which it bought for $ 8.5 billion in the last year. Yammer is just like gated Facebook (especially designed for enterprises), which is used for private communication within the organization, where employees can post and share files, create events, swap messaging and do more activities.

It’s obvious, Microsoft will leverage over the enterprise social network service for making greater impression of its ubiquitous Office software around the world. It has been noticed that Oracle, Salesforce and Microsoft have invested $2.25 billion for their social business upstarts in just the last month.

It’s just an outset for Microsoft to commercialize its enterprise software. The platform like Facebook, where no one requires to have specific training to enter into the workplace. After acquiring Yammer, Microsoft could make its enterprise software (Office 365 and more) available to corporate users on the platform, so they can easily get familiar with the new updates.

Now, enterprise software has gone social and it’s widely reaching to business applications. At present, Microsoft, Oracle and more enterprises are offering (licensing to copy) the software to individuals or companies for their purposes. Now, the tradition of licensing the software has been changing, these enterprises (like Microsoft and Oracle) are selling the software just like home appliances.

Microsoft’s CEO–Steve Ballmer–said, “Buying Yammer underscores our commitment to deliver technology that businesses need and people love.”

With Yammer, Microsoft will try to promote its SharePoint, Office 365, Dynamic and Skype. It has been Microsoft’s strategy to use the workforce and technology of the acquired companies for its benefit. This time, Microsoft has confirmed that Yammer’s staff will not be entertained at Microsoft’s headquarters, the enterprise social network service will be a part of the Microsoft Office Division.

Could Microsoft Turn Yammer Into A New Cash Flow? 

I agree with Microsoft, it’s quite obvious that prior to acquire Yammer, Microsoft’s board of directors have believed that the enterprise social network service could entice a significant number of enterprise users towards its Office and enterprise software. At present, the full fledged enterprise social network platform has over 5 million corporate users and the world largest software giant could leverage the platform of its own benefit. Indeed, Microsoft will try to recover its $1.2 billion from this social networking  platform.

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