Is Yahoo's Zimbra Buy An Attempt To Move Into The Enterprise?

from the one-way-to-do-things dept

Earlier today, the news broke that Yahoo was acquiring email and collaboration tools provider Zimbra for $350 million. Some may find this a little odd, since Yahoo just recently (finally) revamped its online email client based on the code it obtained years ago in purchasing Oddpost. However, one reasonable explanation is that this is (yet another) Google-inspired response. Yahoo bought Oddpost soon after Google released Gmail and Yahoo realized its email client was looking woefully dated. More recently, Google's been getting all sorts of attention for its attempts to move further and further into the enterprise with Google Apps -- including pushing Gmail as a solution for enterprise email. Zimbra collaboration offerings were mainly focused on enterprises or organizations that would be rolling out email to many customers (such as ISPs). Yahoo hasn't focused much (if at all) on creating an enterprise-ready solution, so by buying Zimbra, it could be signaling plans to move much more aggressively into the enterprise with enterprise-ready apps. This is definitely a shift from the Terry Semel-run Yahoo that was so focused on being a media company with some technology. Of course, we've all seen acquisitions like this go nowhere, so there are plenty of questions still to be answered about whether or not Yahoo really be more of an enterprise-focused company, but it would appear that it's at least going to try.

Filed Under: collaboration, enterprise software
Companies: yahoo, zimbra

Microsoft Bolsters Its Install-Heavy Software Strategy With Enterprise IM Buy

from the chattin-at-work dept

There is little doubt that instant messaging has become a tool in many employees' arsenal, with one estimate saying it's used in some manner by 85% of all businesses. To some extent, though, employees and their employers are still trying to figure out the best way to integrate IM in the workplace. There are several companies selling enterprise-focused IM systems, but for the most part, corporate IM use still relies on the same consumer-focused services used by teenagers and web surfers everywhere. This would seem to indicate that there's still a lot of potential in the market for IM services with features geared towards the corporate environment, whether they're enhanced security or compliance features, or different communications functions. To that end, Microsoft has announced that it's buying Parlano, which makes enterprise group chat software, and says it will integrate it into its Office Communications Server and Office Communicator. There's little doubt that there's room for a lot of features to be added for enterprise users, but the big question -- particularly for SMEs -- is whether they're worth paying for. One of the key factors in helping IM spread through the enterprise is the fact that there's a wide range of providers offering "good enough" solutions for free. Bundling the functionality in with other software, as Microsoft plans to do, is one way to try and compete with this, and reflect's Microsoft's strategic view that the emerging software as a service model in the enterprise market is bunk. Of course, the company says that because it's the complete antithesis of its own strategy, requiring huge amounts of installed software with expensive licenses. But with the growth in low-cost, or even free office software, the outlook for most paid IM solutions looks pretty cloudy. While enterprises might see the benefit in paying for software like Microsoft Office over less fully-featured free solutions, the idea that IM isn't so mission-critical (despite its widespread use) will help ensure the ongoing popularity of free IM systems.

Filed Under: enterprise software, instant messaging
Companies: microsoft, parlano