Microsoft Buys Yammer for $1.2 Billion

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In an attempt to become more social, Microsoft purchased Yammer — an online, enterprise site — this week for $1.2 Billion. Yammer will be a separate entity from Microsoft, but operate in conjunction with SharePoint, Office 365, Dynamics and Skype.

But what is Yammer exactly? And why was Microsoft willing to pay over a billion dollars for it?  According to its website, “Yammer brings the power of social networking to the enterprise in a private and secure environment. Yammer… is designed for company collaboration, file sharing, knowledge exchange and team efficiency.”

So basically, it’s an expensive version of Dropbox with a status update option?

As time passes, we will have a better idea of how this software works and whether it was worth money.