Microsoft To Acquire Groove Networks

Microsoft Corp. announced today that it will acquire Groove Networks Inc., a leading provider of collaboration software for the 'virtual office.'

The addition of Groove products to the lineup of Microsoft Office System products, servers and services builds on the capabilities of Microsoft’s current collaboration products, allowing Microsoft to better meet the needs of organizations of all sizes that increasingly are creating borderless project teams comprising employees, customers, partners, suppliers, contractors and others.

The acquisition also brings to Microsoft the development talent and technology leadership of top Groove executives, including founder Ray Ozzie, a creator of IBM Corp.’s Lotus Notes. Ozzie will assume the role of chief technical officer, reporting to Bill Gates, Microsoft founder, chairman and chief software architect, with responsibility for influencing corporatewide communication and collaboration offerings and associated platform infrastructure. Ozzie also will continue his work with the Groove team, which will be part of Microsoft’s Information Worker Group.