Microsoft buys Yammer for $1.2 billion
pharmafile | June 28, 2012 | News story | Medical Communications | Daiichi Sankyo, Facebook, Microsoft, Yammer, social network
Microsoft has acquired Yammer, an internal social networking system for businesses, for $1.2 billion.
Set up in 2008, Yammer closely resembles Facebook in its look and feel, but is used exclusively as a secure intranet within organisations, describing itself as a ‘private social network’.
For Microsoft, the acquisition looks to be a well-judged move, as it should help it maintain its position as the current leader in business applications and software. Microsoft’s chief executive Steve Ballmer said the acquisition underscored the company’s commitment to “deliver technology that businesses need and people love”.
He added: “Yammer adds a best-in-class enterprise social networking service to Microsoft’s growing portfolio of complementary cloud services.”
In July, Microsoft launches Windows 8, its new operating system designed to integrate better with touchscreen platforms such as smartphones and tablets. Microsoft is trailing far behind Google’s Android and Apple’s platforms in these devices, which are eclipsing desktop computers for non-business use, and becoming far more widespread in professional use as well.
Microsoft plans to accelerate Yammer’s adoption alongside complementary offerings from Microsoft SharePoint, Office 365, Microsoft Dynamics and Skype, which it also recently acquired.
Comment – UK pharma experience of private social networks
Yammer is currently used by more than 200,000 companies and an estimated 5 million individual users. Microsoft will have to increase these numbers significantly for the venture to be a success; what is not yet clear is whether there is there is genuine demand for such a system.
There are numerous existing players in the ‘private social network’ market, with the likes of Oracle and IBM offering similar services, but Microsoft looks best placed to be the dominant player.
Adoption of Yammer and similar offerings depend, of course on how useful individual companies and employees find the system.
Yammer says its service “empowers employees to be more productive and successful by enabling them to collaborate easily, make smarter decisions faster, and self-organise into teams to take on any business challenge”.
It claims that using Yammer helps employees become better engaged and improves relationships with customers and partners.
One company which has already introduced its own version of the ‘private social network’ is Daiichi Sankyo UK. Dubbed ‘Chatter’ the company introduced it in September last year, and has hailed it as a huge success in improving internal communications and decision-making.
The firm’s managing director Simon Clough also says it has helped everyone in the company better understand changes in the NHS, with frontline company staff able to disseminate updates much more easily.
You can read more about Daiichi Sankyo and Chatter in the InPharm Communications Guide, which is published at the beginning of August.
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