Sunday 1 July 2012

Microsoft Can Use Yammer`s 'Freemium' Model to Sell Office: Analyst

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As Microsoft moves forward with its acquisition of enterprise social networking company Yammer, industry analysts are starting to identify opportunities for the upstart Yammer to help the software giant to make a faster transition to cloud computing.

Microsoft built its fortune by selling software licenses to computer makers, businesses and consumers. Yammer built its business into something worth paying $1.2 billion for by what’s called the “freemium” model. The freemium model is also the basis for Skype, the VoIP voice and videoconferencing business Microsoft acquired for $8.5 billion last year, noted analyst Park. Skype’s growth was viral, too, as individuals subscribed one at a time and were able to call other Skype subscribers for free.

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