Social Enterprise Wars: Socialtext Goes After Yammer With Free Migration Tool

Leena Rao

Leena Rao is currently a Senior Editor for TechCrunch. She recently finished graduate school at the Medill School of Journalism at Northwestern University, where she studied business journalism and videography. From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. She graduated from Columbia University in 2003, where she was... → Learn More

Thursday, January 6th, 2011

Let the social enterprise software wars begin. Socialtext, which offers an enterprise social software platform built around microblogging, is going after competitor Yammer today with a new free migration tool that allows Yammer users to move to Socialtext.

The free tool allows users to move from Yammer to Socialtext, and to use the social platform for businesses at a discounted rate. Customers who have a free instance of Yammer with more than 100 users can switch to Socialtext Signals, and get a hosted or on-premise microblogging appliance to suit their needs.

Socialtext’s CEO Eugene Lee says that the tool was launched because a “number” of potential clients complained to the company about having to pay Yammer to control the data within their network and to manage users. Lee claims that Socialtext offers a more secure offering, that allows users to put their data behind a firewall with no extra cost.

It’s unclear if Yammer is really as “unsecure” as Socialtext proclaims the platform to be. Yammer seems to be doing fine as a company, recently raising $25 million in new funding and hitting the 1.5 million user mark. Socialtext, which declined to name its exact number of individual users, said that there are currently 6,500 companies using its social software.

One thing is clear from this announcement—Yammer may be the one to beat in the social enterprise world. There are a number of competitors in the space, yet Socialtext targeted Yammer as opposed to Salesforce’s Chatter, Socialcast, Jive, Bantam Live, Success Factors’ CubeTree and others. Socialtext has not released a migration tool for any other service and doesn’t appear to be releasing any other tools in the immediate future. The fact is that Yammer is growing fast and competitors are using aggressive tactics to gain (and retain) users.

Of course, Yammer is using its own aggressive tactics as well—the company just put up a large billboard in the SOMA neighborhood of San Francisco advertising its social platform for businesses.

Company: Socialtext
Website: socialtext.com
Launch Date: December 1, 2002
Funding: $19.4M

Established in 2002, Socialtext, a Bedford Funding portfolio company, was the first company to deliver social software to businesses. By unlocking knowledge, expertise, ideas and data, Socialtext eliminates information silos across the enterprise to drive superior business performance. Socialtext’s enterprise social networking products — including microblogging, blogs, wikis, profiles and social spreadsheets — provide simpler ways for employees to share vital information and work together in real-time. Delivered in a variety of hosted cloud services, as well as on-site...

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