Microsoft gets in the Groove

Microsoft is to buy the software house Groove Networks for an undisclosed sum.

Beverly, MA-based Groove Networks was founded in 1997 by IBM/Lotus Notes creator Ray Ozzie. Since then, it has gone on to develop the Groove Virtual Office, a software suite tightly integrated with Microsoft’s software products that enables users to share information and manage projects.

Microsoft already has its own set of collaboration software tools. But these products - Microsoft Office SharePoint Portal Server and Windows SharePoint Services – only allow businesses to create and manage shared workspaces for individuals within a corporate IT network. Groove's products, on the other hand, allow users to collaborate on group tasks and projects in highly decentralized situations - when working outside a corporate network and with limited or no access to a server.

After the deal is completed, the nearly 200-person Groove organization will continue to operate from its Beverly, MA headquarters as part of Microsoft's Information Worker Group.