Yammer Raises $25M For Enterprise Social Networking

With the market for collaboration and social technologies in companies heating up, the social network will use the third round funding to triple its engineering team and increase sales operations.
Top 20 Apps For Managing Social Media
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Top 20 Apps For Managing Social Media

As part of that trend, social technology companies like Yammer are integrating their services into enterprise software. For example, Yammer in October announced tight integration with Sharepoint, which enabled Yammer users to get their news feed directly inside Microsoft's collaboration software. Other examples include Dassault Systemes integrating with blueKiwi to get social capabilities into Dassault's product lifecycle management software. Yammer competitors CubeTree, Jive, Twiki and others have also embarked on integration deals with enterprise software vendors.

A study released this year by security vendor Trend Micro found that social networking in the workplace has risen from 19% in 2008 to 24% in 2010. A major contribution to Yammer's growth has been its strategy of providing a free basic service that people can used to connect to coworkers. Only people with a verified company email can use the service. If the service proves useful to a company's employees, then Yammer can offer additional capabilities through its premium paid services. The success of Yammer's free service prompted to recently drop the charge for its Chatter collaboration service.

In its latest announcement, Yammer also said that Hamid of U.S. Venture Partners would join its board. The company also announced that David Stewart, former senior director of product at social game developer Playdom, had joined Yammer as VP of product management. Before Playdom, Stewart was product-marketing lead at YouTube and the business marketing lead for Google's commerce team.

Along with Stewart's hiring, Yammer said Mark Woolway, former VP of corporate development at PayPal, had joined the company as VP of corporate affairs.


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