Salesforce buys Dimdim for $31 million, bolsters Chatter collaboration

Summary:Dimdim resembles Cisco's WebEx and Citrix's GoToMeeting. For, those capabilities are a logical extension to Chatter. said Thursday that it will acquire Dimdim for $31 million in a move to add real-time communication technology to its Chatter platform.

Dimdim, founded in 2007, has presence, messaging and screen sharing technologies.  In a nutshell, Dimdim allows you to share screens, documents and communicate in meetings via a browser. said it will add to its development team with the Dimdim purchase. In many respects, Dimdim resembles Cisco's WebEx and Citrix's GoToMeeting. For, those capabilities are a logical extension to Chatter. said it will integrate Dimdim into Chatter, but has no plans to enter Web conferencing. Dimdim will cease as an independent product, but continue to support existing customers.

George Hu, director of marketing, platform and corporate development, said on a conference call.

Our vision is that the market's moving to an integrated collaboration and communication kind of platform, a la Facebook. So it made sense for us to really focus our efforts and our product development on that vision, and that, of course, means integrating it into Chatter. Also, we just really felt like, in terms of bringing it to Chatter, just continuing existing service would enable us to really maximize the speed at which we could really make that migration to this integrated vision. So that's the basis of our decision.

In a statement, reiterated its Facebook for the enterprise argument to justify the purchase.

The acquisition won't have any impact on's fourth quarter revenue but will shave its non-GAAP earnings by a penny a share. For fiscal 2012, Salesforce expects the Dimdim purchase to shave about 4 cents a share to 5 cents a share from annual earnings.


Topics: Enterprise Software


Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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