InsideMicrosoft

Microsoft Buys Groove Networks

Microsoft today announced its aquisition of Groove Networks, maker of group productivity software. In addition, Groove founder Ray Ozzie becomes one of Microsoft’s three Chief Technology Officers (Ozzie also was part of the group that created Lotus Notes). No one seems more excited than Microsoft employees themselves, some of whom are very familiar with Groove (due to Microsoft’s interest and investment in the company). Groove becomes part of the Office line of products (although it will be a seperate product for the time being).

Alex Barnett:

This is huge news…very exciting.

Microsoft’s Lawrence Liu:

I’m most excited about Ray Ozzie becoming a CTO (along with Craig Mundie and David Vaskevitch reporting directly to Bill Gates. Ray is a living legend in the collaboration space and will likely help make Microsoft’s information worker products even better. Lastly, I’m anxious to see Ray start posting on his blog again soon.

Microsoft Group VP Jeff Raikes:

Together, Microsoft and Groove will make anytime, anywhere collaboration a more natural and easy extension of how information workers coordinate their projects and document-centric work.

Scott Galloway:

Least surprising news ever

FT.com:

“Microsoft, the world’s largest software maker, on Thursday said it would buy Groove Networks Inc. in order to offer software that allows groups of people to work together regardless of location.

Redmond, Washington-based Microsoft had previously invested in Groove twice, in 2001 and 2003. Since its founding, Groove has received $155 million in financing from investors such as Accel Partner and Intel Corp.’s venture capital unit Intel Capital.

Investor’s Business Daily:

“In his new role, one of three such positions at Microsoft, Ozzie will report directly to Bill Gates, chairman and chief software architect of the Redmond, Wash.-based company.”

C|Net:

Gates lauded the advances Groove has accomplished in collaboration for Microsoft Office and said that Ozzie’s expertise in other areas, notably security, authentication and peer-to-peer computing, will be brought to bear in other Microsoft products, including the forthcoming Longhorn edition of Windows.

“I thought about ‘Could we ever hire Ray and his team?’ for a long, long time. So it’s a big, big day for me that this is finally taking place,” Gates said during a conference call Thursday. “The Groove product really has some fantastic and very unique features.”

Weblogs:

What a coup! This is a brilliant move and should put to rest any question doubters had about Microsoft’s commitment to collaboration.

Press Release
Microsoft Press Pass interview with Ray Ozzie and Jeff Raikes

UPDATE: Even more:

MS’s John Evdemon:

Groove has always had a cozy relationship with Microsoft.

Here’s the coolest part: Ray Ozzie is now our CTO, reporting directly to Sir Bill (oops, I mean William Henry Gates III, KBE). Welcome aboard, Ray!

MS’s Kevin Remde:

He’s the guy who invented Lotus Notes!

Ray Ozzie is now Microsoft’s CTO!

And equally good new: Microsoft Acquired his company, Groove Networks. Watch for some great stuff to be coming out of that deal!

MS’s Michael Platt:

WOW!

March 10th, 2005 Posted by Nathan Weinberg | General | 5 comments