Microsoft Collaborates With Groove

We’ve been following Groove for a long time, watching it find itself as a niche player in the ad hoc collaboration market, based on its user friendly, easy to assemble, collaboration network.  So it was with some trepidation that we noted that Microsoft had deepened its relationship with Groove (they were already a significant investor), by purchasing the company and persuading its founder, Ray Ozzie (also the inventor of Lotus Notes), to become a CTO at Microsoft.  We didn’t want to see Groove and its interesting approach to supporting collaboration just disappear.

But Groove and Microsoft, in a joint interview, reassured me that this would not be the case.  The plan is to run Groove as a separate company, continuing to sell and support its products, and, at the same time, looking for opportunities to integrate its technology with Microsoft products.  Microsoft has had access to the Groove technologies for several years (as part of their investment agreement) and is already using Groove with various Microsoft products such as Outlook, SharePoint, and Office, but this will permit tighter integration and more opportunities.                          

Exactly how Ray Ozzie will integrate with the Microsoft culture is a good question, although he is reported to like the idea.  When you’re in a small company, it’s hard to get your products into thousands, let alone millions of hands.  When you’re part of a bigger organization, your ideas can get much farther.   Microsoft will also be able to help make Groove into a global product by providing internationalization.

In any case, Microsoft thinks the Groove acquisition will change the playing field.  The collaboration space is very competitive.  (And, we’d note, collaboration is becoming more important, more mainstream, as it becomes less of a separate offering and more of something that is integrated into every facet of information work, broadly defined.  We expect to see collaboration as a feature of manufacturing and CRM systems.)

Microsoft sees its role as helping people to do office work, everything from creating documents to analyzing business models to collaborating.  But the nature of work is changing and so is the office.  Today, it’s becoming anywhere your laptop happens to be.  Your office team is changing, too, from a few colleagues in your own department to include partners, customers, suppliers, and contractors, with no common network or IT infrastructure. 

Microsoft was good at providing infrastructure inside a company’s boundaries. Groove provides cross-organizational services, which lets us look at new services for these workers.

Microsoft wants to retain the lightweight, ad hoc collaboration that Groove is famous for so that it can offer a range of solutions to let users work the way they want to work, from light weight tools for users without an IT department, to controlled servers and services for supported workers within a formal infrastructure.      

Microsoft wants to keep not just Groove but also the Groove people.  That’s one reason they will keep the Beverly operation; the other is to have a technical foothold on the east coast.  Most west coast vendors (Sun, Novell, et al) do that; Microsoft never did before.

Microsoft is hoping to add its 100,000 trained Office Systems solutions developers to Groove’s existing partners, who are mainly horizontal resellers and ISVs.  

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