Microsoft’s $44.6bn bid to buy Yahoo is largely focused on capturing the
attention of consumers on the internet but it could also have an effect on
businesses, not least because of Yahoo’s ownership of the Zimbra messaging
server.
Yahoo acquired Zimbra in September last year for about $350m, giving it an
open-source alternative to Microsoft Exchange platform. Zimbra customers include
Digg, MySQL, Raytheon, Mozilla.org and, in education, the University of Berne
and UCLA. However, Microsoft is unlikely to want to pump money into Zimbra and
might not even want to sell it off to a potential new rival.
Advertisement
For now at least, Zimbra is putting a brave face on things. In a blog post to
users, Zimbra co-founder Satish Dharmaraj wrote:
“We just made an irrevocable contribution of Zimbra 5.0 to the open source.
No one can take that away. We will remain true and faithful to our contractual
obligations and will do everything possible to make sure that our biggest assets
- you - remain confident that we are here to stay and execute.”
Colin Smith, managing director of Warrington-based email hosting firm and
Zimbra partner Simply Mail Solutions, said, “Eighteen months ago, Zimbra had a
few gaping holes but now it’s the only credible alternative to Exchange in the
open-source community. They were always built on a big-company basis and they
always had very good roadmaps that they stuck to fairly rigidly. [With
Microsoft] it’s a question of whether they’d let it go on or stomp on it and
kill it. There are arguments that Microsoft might keep it on to develop their
web mail accounts [and not challenge Exchange directly].”
But other parts of the blogosphere doubt that Microsoft and Zimbra could
coexist.
A blog from a datacentre hosting partner 01.com suggested that Microsoft and
Zimbra could not live together:
“The chances of Zimbra remaining a part of Yahoo [if it is] purchased by
Microsoft are minimal [but the news] creates opportunities for Zimbra to be
spun-off/bought/sold prior to such a purchase given the interests of the
prospective new company are not aligned.”
Raju Vegesna of web applications company Zoho was pessimistic about Zimbra’s
prospects if Microsoft lands Yahoo.
“If you look at Zimbra, it really is an Exchange competitor,” he wrote in a
blog. “Yahoo probably bought it to build a platform around email, gaining from
Zimbra’s expertise on email. When Microsoft completes the acquisition, we can
safely assume that the Exchange competition will no longer exist. Yahoo might
integrate some goodies from Zimbra into its webmail client [but] all the server
side stuff of Zimbra might die a quick death.”
The Microsoft bid has overshadowed a new release of Zimbra Desktop for
consolidating multiple mailboxes.
A side-effect from any Microsoft-Yahoo deal could come in the form of
web-based email, instant messaging, storage and other services that are used by
business users with or without the blessing of their IT departments. A combined
Microsoft-Yahoo would be tempted to consolidate popular properties such as
Windows Live Hotmail, MSN Messenger, Windows Live Messenger, Windows Live
SkyDrive, Yahoo Mail, Yahoo Messenger and Yahoo Briefcase.
Comments
Have your say on this article