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Yahoo Acquires Zimbra for $350 Million

TechCrunch is reporting that Yahoo has acquired the open source office suite Zimbra for $350 Million in cash. Zimbra has been in and out of the news over the last couple of years for their office suite, and recently launched offline capabilities. "The company has raised $30.5 million over three rounds of funding from Benchmark Partners, Redpoint Ventures, Accel Capital, Sumitomo and Duff, Ackerman & Goodrich. They announced 6 million paid mailboxes back in March, and more recently inked a deal with Comcast that brings another 12 million potential subscribers."

21 of 95 comments (clear)

  1. Yahoo & Open Source? by ZephyrXero · · Score: 2, Insightful

    Perhaps I've missed something but isn't Yahoo usually not too fond of open source stuff? Perhaps they're changing their ways? Or maybe they just want to make Zimbra proprietary to kill any open souce competition? I guess time will only tell on this one...

    --
    "A truly wise man realizes he knows nothing."
    1. Re:Yahoo & Open Source? by ximenes · · Score: 2, Informative

      Actually Yahoo is very open-source centric internally, its just that they aren't very good about giving things back. Which isn't to say that they never do (they've supported FreeBSD), but there is a sea of internal tools and modifications that no one ever bothers to release.

    2. Re:Yahoo & Open Source? by Sherloqq · · Score: 2, Informative

      According to Zimbra's own press release, "Yahoo! is also a major proponent of open technologies and this combination is a further testament to how serious they are about their intentions. You will continue to see active participation in developer APIs and forums. We are committed to keeping the current source open and available for use and we will continue to offer the network version that will contain value added proprietary features on top of the open product."

      --
      Have EVDO, will travel.
    3. Re:Yahoo & Open Source? by Ilgaz · · Score: 5, Informative

      Perhaps I've missed something but isn't Yahoo usually not too fond of open source stuff? Perhaps they're changing their ways? Or maybe they just want to make Zimbra proprietary to kill any open souce competition? I guess time will only tell on this one... Yahoo exists thanks to Open Source.

      It is still the poster child for FreeBSD. They started on FreeBSD and kept using it to this date.

      They are offering free open source SDKs etc on http://developer.yahoo.com/

      They certainly have a problem in PR department if a slashdot user thinks Yahoo is not fond of open source.
    4. Re:Yahoo & Open Source? by mabhatter654 · · Score: 3, Interesting

      That would be correct. Note how Google has Google Labs and Google Code... If they're not playing to the slashdot/digg crowd, then they're not playing in the same game as Google!

    5. Re:Yahoo & Open Source? by bark · · Score: 3, Insightful

      Also to clarify, Yahoo's supported open source by hiring a whole slew of open source developers. One of the heavy weights is Rasmus Lerdorf, creator of php.

  2. Not surprising in the least. by juuri · · Score: 4, Informative

    Last year I setup a dual box zimbra system to replace some rather high traffic imap servers that served ~1200 users with 550+ concurrent during periods of heavy load, with a *lot* of incoming and outgoing mail peppered full of attachments. I was pretty skeptical at first about how the system would hold up, but not only was it solid, in many ways it was much faster than the previous system, especially with the mailboxes that were huge in size.

    Solid backups, good inegration with third party software, easy extension and a solid upgrade in place system makes for a great product. It didn't hurt that their techs were responsive and actually knew about all the software (much of it OSS) that their product was based on. I'm suprised that is Yahoo though, figured it would be Apple to turn into their enterprise mail platform.

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    --- I do not moderate.
  3. Re:Yahoo & Open Source? -- Let's fork guys! by bogaboga · · Score: 2, Informative
    We better fork the entire Zimbra code before it's too late. I liked their idea, used it a few times via their demo website, but was never successful at getting their server installed on Ubuntu. Open source was as good [or bad]as closed source software in this case.

    I agree with you though, that Yahoo is not very friendly with Open Source. Look at their Launchcast music service...it's not friendly to Firefox even to-date!

    Unfortunately, I cannot make a difference since I am no developer.

  4. Wasted oppotunity by Anonymous Coward · · Score: 4, Funny

    They really should have taken a look at zombo.com. There are many more possibilities there, according to the sources I've queried.

  5. Not an "Office Suite" by fm6 · · Score: 3, Informative

    This is not yet another competitor for Microsoft Office or Open Office. (God knows we don't need any more!) Zimbra is a little more specialized, concentrating on email, scheduling, and other "collaboration" stuff.

    I seem to recall trying Zimbra a little while back and not being terribly impressed. Yahoo seems to have a history of buying companies for the sake of products or services they would have been better off developing themselves. Anybody remember broadcast.com?

    1. Re:Not an "Office Suite" by ZephyrXero · · Score: 2, Informative

      Zimbra has been primarily focused on email (ala GMail, or Yahoo's own new beta webmail service), but they've recently begun working on adding office functionality (ala Google Docs & Spreadsheets, or ZoHo) to it's feature list. This would be really great for the business I work for as we'd much rather host our own web-based office stuff than lease it from Google or someone, and it's open source...I hope to God Yahoo doesn't screw Zimbra up.

      --
      "A truly wise man realizes he knows nothing."
    2. Re:Not an "Office Suite" by fm6 · · Score: 2, Informative

      Yeah, and MSOffice also includes an email client, which is one of the central apps in Zimbra. But Zimbra as I recall does not include word processing or spreadsheets, which are both basics of "office suites". Like I said, it's more specialized.

    3. Re:Not an "Office Suite" by fm6 · · Score: 2, Insightful

      We need as many quality "productivity suites"(ugh) as possible, as long as they support sensible formats.
      You mean, as long as they all support the same format. Which they have to do so that people using different products can share files. These formats are, by their nature, messy, and without standardization you have no hope of going from WordBunny to WeaselWord to ZorkOffice without getting all your formats messed up. Fortunately, people are finally beginning to get this.

      But forget "the more competition the better". The market's already saturated. Anybody who thinks they can add value at this late date is an idiot. And I've already wasted too much time with software designed by idiots.
  6. Re:Yahoo & Open Source? -- Let's fork guys! by albalbo · · Score: 4, Informative

    No need to fork Zimbra, we have a light weight alternative in Bongo (http://www.bongo-project.org/) that we'd love to have more people help out with.

    As well as Bongo, there is also Citadel doing similar things, Kolab doing completely different things, and a couple of web-only groupware systems.

    Zimbra's by no means the only game in town.

    --
    "Elmo knows where you live!" - The Simpsons
  7. Re:Yahoo & Open Source? -- Let's fork guys! by bogaboga · · Score: 4, Funny

    I did not know this http://www.bongo-project.org/ existed. I swear to God...I have never heard of Bongo at all. One wonders what else I do not know about.

  8. Agreed by porkThreeWays · · Score: 5, Interesting

    Zimbra is by far the best at what it does. It's better than every web based Groupware (is that the proper name?) software out there. Let's just hope Yahoo doesn't run it into the ground. I don't see why they'd actually want or need this software. Yahoo already has lot's of talented programmers and pretty decent software. The Zimbra code is probably useless to them and all of Zimbra's features and quality could be copied without owning them. It isn't like Google buying Youtube (i.e. buying established users) because Zimbra really only has a cult following. For how good it is, it really isn't that popular. This purchase really confuses me. Like I said, I hope they actually do something with Zimbra instead of buying it and letting it sit on the shelf.

    --
    If an officer ever threatens to taze you, say you have a pacemaker.
  9. Re:Yahoo & Open Source? -- Let's fork guys! by albalbo · · Score: 2, Informative

    We're saving the noise and partying for 1.0 ;)

    --
    "Elmo knows where you live!" - The Simpsons
  10. But what happens if MSFT buys Yahoo? by christian.einfeldt · · Score: 3, Insightful

    oooo, this could turn out bad. There has been a lot of talk of Microsoft buying Yahoo in an attempt to catch up to Google. And if MSFT does buy Yahoo, thereby acquiring Zimbra, it is another FOSS code base that we might lose time and effort on.

    Of course, we don't want to speculate needlessly about a Microsoft acquisition of Yahoo. This is exactly the wedge that we see Microsoft driving into the FOSS community with their deals with Novell, Xandros, and Linspire. Undoubtedly, one of the benefits to Microsoft of the Yahoo acquisition talks is that many members of the FOSS community will shy away from Yahoo, simply because they might become a Microsoft property. And even people who like Microsoft and its products might hesitate to use Yahoo products and services if they see Yahoo stumbling.

    So I would like to see Yahoo get its financial house in order. I am really fond of Google and its products and services, and I tend to use Google tools and properties more than the Yahoo counterparts. But I wouldn't want to have competition in this area reduced to only two major players: Microsoft and Google.

    So come on, Yahoo, get your act together! And stop talking with Microsoft about acquisitions! Ick!

    1. Re:But what happens if MSFT buys Yahoo? by carlivar · · Score: 2, Interesting

      Yahoo is, what, 95% FreeBSD and Linux? I just laugh at these Microsoft rumors. I seriously doubt Microsoft's pride would ever allow them to acquire that much open-source software. They probably realize it would be nearly impossible to convert to Windows, too. At the very least they'd probably lose over 50% of Yahoo's engineering staff if they tried such a thing.

      --
      Vote Libertarian
  11. Re:Yahoo & Open Source? -- Let's fork guys! by carlivar · · Score: 2, Informative

    From the Zimbra press release:

    Will the Zimbra server and Web client remain open source?

    * Access to the Zimbra source code will remain available and free.

    Will new Zimbra projects and additions to the current Zimbra suite be open source?

    * Zimbra will continue its practice of offering both an open and certified, network editions of the software.

    --
    Vote Libertarian
  12. Reason: it's the Hula Project by msimm · · Score: 2, Informative

    I was curious too. Apparently after Novell chose to stop active (paid, full-time) development on it some people started a fork.

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    Quack, quack.