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Yahoo! to boost collaboration offerings with Zimbra E-mail
by Stuart Corner   
Tuesday, 18 September 2007
Yahoo! is to acquire e-mail and collaboration software developer Zimbra (www.zimbra.com) for approximately $US350 million.

Yahoo! said the deal would help it expand its presence in universities, businesses and through ISPs by enabling organisations to host email on or off premises with their own domain. Zimbra's offerings include AJAX-based e-mail, calendar, and contact management features that can be used both on and offline. According to Yahoo!, "their open platform enhances the user experience by enabling creative mash-ups called Zimlets that tie in valuable Web services to email, and can be tailored to fit the needs of every customer."

The move reflects the belief among major players that collaboration represents a massive growth market. In March this year, Cisco paid $US3.2b for WebEx, a market leader in on-demand collaboration applications. It enables users in different locations to view and modify documents on their respective screens by interfacing to each system at the screen, mouse and keyboard level rather than to the application directly.

Just last week Capgemini announced tht it would offer and support Google Apps , Google's office productivity tools to large scale enterprises. Capgemini said it would "extend the value of Google Apps for large-scale enterprises by maximising adoption and fostering real-time collaboration." And last month Microsoft announced the acquisition of enterprise group chat application developer Parlano.

Yahoo! Mail celebrates its 10th anniversary this year and claims 250 million users worldwide. Brad Garlinghouse, Yahoo!'s senior vice president, communications and communities, claimed that: "with Zimbra, we will bring the security, reliability and anywhere access of Yahoo! Mail to people at school, work and home, further enhancing our leadership position in Web mail."

Following the acquisition, Zimbra will become a wholly-owned subsidiary of Yahoo!. Zimbra founder, Satish Dharmaraj will continue to lead the Zimbra team based in Yahoo!'s Sunnyvale headquarters and will report to Garlinghouse. The transaction is expected be completed in the fourth quarter of 2007.{moscomment}

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