Microsoft moves Yammer under Office 365; Co-founder David Sacks is out

Microsoft moves Yammer under Office 365; Co-founder David Sacks is out

Summary: Microsoft is fine-tuning further its Office businesses and is moving Yammer under Office 365. Yammer Co-founder David Sacks is leaving Microsoft.


Ever since Microsoft bought enterprise social-networking vendor Yammer two years ago for $1.2 billion, the Redmondians have allowed Yammer to continue to operate fairly independently.


But Microsoft management may be tightening its grasp a bit on the San Francisco-based Yammer business.

On July 24, Yammer Co-founder David Sacks announced on Twitter that he was leaving Microsoft and Yammer.

"Thank you to my current and former YamFamily for 6 great years and to Microsoft for the last two. I look forward to new adventures," Sacks tweeted.

Before founding and heading up Yammer as its CEO, Sacks was PayPal's Chief Operating Officer.

Microsoft has been integrating Yammer's enterprise social capabilties with a number of its own products, including Office 365 and SharePoint, since it bought the company. Microsoft has taken a few pages out of Yammer's playbook, in terms of how to more rapidly update and iterate on its technologies.

A year ago, Microsoft created a "Yammer North" team in Redmond to help the company coordinate with Yammer and bring some Microsoft processes and thinking, when appropriate, back to the Yammer team.

But now Microsoft is moving Yammer into the Office 365 and Outlook development teams, which are headed by Microsoft Corporate Vice President Rajesh Jha. A lead from Jha's team, Kristian Andaker, is going to move to San Francisco to head up the Yammer Engineering team there, I hear from my contacts.

I asked Microsoft officials what was happening with Yammer and was provided with the following statement:

"Yammer is an integral part of Office 365 and it is being used by more than 500,000 organizations to transform how they work every day. Since we acquired Yammer in 2012 we have been working together to bring the integrated benefits of enterprise social to all our Office 365 customers. As we’ve seen the Yammer experience extending throughout Office - giving people new ways to collaborate and work together – it’s now time to bring the Yammer organization together with our Outlook and Office 365 Shared teams as the next logical step in delivering an integrated set of social, collaboration, and communication experiences that enable companies to work like a network.

"We thank David for his commitment to Yammer and Microsoft and wish him the best in his future endeavors.Yammer has grown tremendously since the acquisition in 2012, and is now an integral part of Office 365 and used by more than 500,000 organizations. As part of our long term plan, David has played an instrumental role over the past two years in building a strong leadership team to set a solid direction for Yammer as part of Microsoft Office 365 and our vision for enterprise social."

Topics: Social Enterprise, Cloud, Collaboration, Microsoft, Start-Ups


Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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  • That's Because Yammer Hasn't Made A Dime...

    And MS paid billions for it.

    Microsoft only buys overpriced, overhyped, and otherwise WORTHLESS companies.

    MS Billion Dollar Money Pit Club:

    * Yammer

    * Skype

    * XBOX

    * Surface

    * Windows RT

    * Nokia

    * Windows Phone

    And if they would've succeeded at buying Yahoo they would be kaput by now.

    Happy shopping this holiday season, Microsoft.

    :0 )
    • They've had some winners

      SQL Server
      Visual Basic
      Great Plains...
    • Yet strangley

      Yet strangely they make tons of money.
      Buster Friendly
      • That is how a monopoly works.

        But you knew that.
        • dominant vs monopoly

          There is a big difference. There are many other software choices, many of which you and others tout every day to Microsoft operating systems and office suite software. Despite it being the 12th iteration of the year of Linux, Microsoft continues to do well. Maybe it's because their products are better than Orandy thinks. Not because there are no other choices, because there are dozens and dozens of choices - just ask SJVN.
          Luke Skywalker
          • MS is still a monopoly.

            And with the billions in money that gives it the ability to force things - just look at how MS bought a standards organization.

            Look at the reputation assassination they have done.
          • What about Google's "monopolies"?

            Forcing things onto people doesn't necessarily result in success.

            Just take a look at Google+ after they it forced onto YouTube.

            I'm not sure what "reputation assassination" you're talking about, but should you really be criticizing Microsoft when other major companies are doing the same thing?
          • What does Google have anything do with the article

            Nothing.... Come up with something better.
          • They aren't a monopoly.

            YouTube is part of Google.

            Still not a monopolistic activity.

            And the other "major companies" that I know of that have done it are the tobacco companies, the mostly "legal" drug dealers...

            Still doesn't make it right. And yes, I should be criticizing MS. They should have been broken up after they were convicted of illegal monopolistic activity.
          • Redefining monopoly as you appear to have done means...

            You can't buy food or computers anywhere but Walmart, you can't buy a hamburger and fries anywhere but Mcdonald's, you can't buy a car unless it is made by GM.

            Market dominance does not create a monopoly and your misuse of the term makes your entire comment thread much less than erudite. You must have been out smoking weed in the corn field across the street during your basic social studies classes in high school.

            Once upon a time we had a real live honest to God monopoly in the US...Ma Bell. They broke it up. We also have legal monopolies in the form of local utilities like electric, gas, cable and internet. I am far happier with the choices I have from the pool of IT purveyors, including Apple, than I am from any of them.

            Microsoft got caught performing some activities that were of a monopolistic nature and got caught, I am convinced they have matured greatly since then. But I would dare you, or anyone, to find a company in the software business that hasn't made similar types of overtures in the past years. IBM? Apple? Maybe Samsung? Don't make me laugh, it hurts when I laugh this hard. Even our glorious and sactimonious Linux crowd are guilty of this behavior as one of the methods for establishing a monopoly is to dump your products so cheaply you put all the "for profits" out of business THEN charge for your products and services...yeah Google and Linux...I'm referring to you.

            That said, I use all of them. I have to, it is my job, my career AND my avocation. You should thank your loucky stars that there still is a choice rather than do your best to trash a worthy competitor.

            Just for fun I am working today on my youngest son's 7 year old HP Pavilion dv7 running Windows Vista SP2 because it still works like new and has a gorgeous screen and a built-in subwoofer making listening to my music stream a nice experience. I've given up waiting for the dreaded BSOD, guess it just isn't going to happen.
            The Heretic
          • To bad there is no edit.

            I made a freudian slip when I accidentally almost personally attacked you. Anyway my point is clear.
            The Heretic
          • This is a very strange comment

            Linux is not a commercial product. Various Linux distributions are, but that's another matter.

            Linux is a codebase, maintained by the Free Software Foundation and the Linux Foundation. Its licensing terms require it to be free (not as in beer, but as in freedom.) Because Linux has multiple authors, not even Linus Torvalds can distribute Linux in a manner other than freely.

            This has nothing to do with "dumping" or whatever that was about. This is about copyright and licensing, which constrain to Linux in such a way that it cannot be legally distributed in any fashion other than "free."
          • You forgot that they were convicted.

            So they are a monopoly.
        • i thought

          I thought this was an article about MS not about Google...
          • They're Intertwined

            You can't talk about Microsoft without talking about Google and/or Apple. Their futures are too intertwined.
    • Not acquisitions

      Surface, Windows Phone, Windows RT and XBox are NOT acquired companies. Furthermore Yammer has seen huge growth and is a crucial component in Microsoft's Office 365 strategy going forward. I'd say Yammer is a very successful purchase.
      • @ronald@

        Who said every entry in Microsoft's Billion Dollar Money Pit Club had to be an acquistion?

        MS is an equal opportunity cash destroyer!
        • So XBox is not profitable?

          So there can only be 1 game console in the entire world right?
          2 or 3 will not be profitable.
          • XBOX is profitable

            All those kids running to re-up their XBOX Live Gold accounts every year at $30 a pop? They probably clear as much from that as they do on Windows.
          • ..only just

            The Xbox division is only just turning a profit, however with all the money invested into R&D for the console, Microsoft have not actually made any money from it overall...