Tech Watch | InfoWorld Staff » Microsoft To Buy Groove Networks

March 10, 2005 | Comments: (0)

Microsoft To Buy Groove Networks

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Hoping to boost its collaboration software strategy, Microsoft on Thursday announced its intention to acquire Groove Networks, naming Groove founder Ray Ozzie as the company's CTO.

The deal calls for Microsoft to add Groove's products into Microsoft's Office System lineup of products and services, along with bringing over Groove's core development team. Ozzie, the creator of Lotus Notes, will report directly to Microsoft chairman Bill Gates.

Once the deal is approved, Groove will become part of Microsoft's Information Worker Business unit, and will continue to be based out of its Massachusetts headquarters. Company officials declined to disclose the financial terms of the deal.

In a prepared statement Microsoft group vice president in charge of the company's Information Worker Business unit, said the deal makes sense because the companies have a shared vision for collaboration. He said Groove complements Microsoft's collaboration products "by helping us better serve businesses with mobile workers and remote offices," and will assist Microsoft in being able to offer both small and large companies more integrated collaboration software and services.

Currently Microsoft has Office SharePoint Portal Server and Windows SharePoint Services that allow IT shops to create and manage shared spaces for groups of information workers within an IT-based network. Just this past week the company introduced Office Live Communications Server and Microsoft Office Live Meeting that together reportedly offer a unified communications infrastructure for information workers.

The two companies are scheduled to hold a press conference later today to spell out more of the details of the agreement.

Posted by Ed Scannell on March 10, 2005 07:31 AM

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