Why The Rumored Microsoft Deal for Yammer Rings True - Arik Hesseldahl - News - AllThingsD

Watch for Oracle to acquire Jive, if the Microsoft/Yammer rumor turns out to be accurate

"Once Microsoft gets its hands on it, two things will be true: Yammer, which is generally seen as still being buggy and in need of a lot of smoothing out of its rougher edges, will need some serious investment. The problem is that even at a $1 billion valuation, Yammer is small enough that it will disappear inside Microsoft.
The other is that the the freemium business model will have to go away. With the possible exception of Skype, it’s just not in Microsoft’s DNA to offer an enterprise product for free and leave it to the user to upgrade to the paid version when it suits them. When the rubber meets the road, many customers may dump Yammer in favor of something else. Those that are serious and willing to pay will consider Jive which would probably capitalize on the opportunity by offering special deals to customers who switch. Those who demand free will switch to something they can still get for free."

Why The Rumored Microsoft Deal for Yammer Rings True - Arik Hesseldahl - News - AllThingsD