By Heather McLean, 11 October 2001 14:28
NEWS Microsoft is getting into Groove Networks - the company founded by Lotus Notes developer Ray Ozzie - in a bid to beat rival Lotus at the enterprise peer-to-peer game. A senior Ovum consultant said Microsoft's purchase of 20 per cent of the company for $51m is actually a plot to grab corporate market share from Lotus. Groove - the company that gained fame through its creator and by providing Napster with its file swapping infrastructure - is known for its secure technology and announced its support for Microsoft's .Net initiative on the launch of Passport and Hailstorm. Microsoft intends to move in on the peer-to-peer market according to senior Ovum consultant, Neil Macehiter: "This deal can potentially extend the reach of both partners as Microsoft has been focused on the consumer and Groove on businesses," he said. "It assists Microsoft's need to focus on enterprise peer-to-peer in the battle with Lotus. You could integrate Microsoft products and run them over Groove's secure platform." Macehiter added. James Governor, analyst at Illuminata, said: "Microsoft may build Groove's software itself in the long run or buy the company outright. This stake may be a defensive play to make sure someone else like Sun doesn't attempt to buy the company in the future." Groove raised a further $3m from previous investors to add to the $51m from Microsoft and is on an IPO path, according to Ozzie.
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