Microsoft, Yammer, and the bubble


Microsoft have finally bought Yammer, the enterprise focussed, chat-style Skype/ Twitter tool.

I reviewed Yammer two years ago after a colleague, Ben, heard about Yammer in use at several investment banks in New York. We started using the free version of Yammer at Endava and it spread quickly through the organisation without any promotion – the joy of viral marketing. We use Yammer for asking group questions and disseminating news announcements about our suppliers.

Two things surprise me about the purchase – the first is that Microsoft already own Live Messenger for consumers, and Office Communicator (now Lync – I think) for enterprises.

And remember, Microsoft also own Skype. So maybe the acquisition was defensive – to ensure none of its competitor’s got to buy Yammer.

The second surprise is the cost – Microsoft spent $1.2 billion on the acquisition. Yammer’s annual revenue is estimated to be around $15 million which equates to around 1 million users based on their latest pricing.

Anyone else think that we’re in another bubble?


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