What the Microsoft Acquisition Means For Yammer Cost and Pricing

Yammer pricing has become overly complicated since its acquisition by Microsoft.  If you’re confused by the change and wonder How Much Yammer Costs Now? This article should help

Yammer’s enterprise social network gained huge popularity in large part due to its simple pricing.  Companies could try Yammer for free with unlimited users for as long as they wanted.  If they liked it, they could upgrade to a premium paid version, at a flat rate of $5/user/month.  Easy and straightforward.  Unfortunately, those days are over.

Yammer Pricing Explained How much does Yammer Cost? Review

Yammer Pricing Explained How much does Yammer Cost? Review

Microsoft bought Yammer in July 2012, and less than 4 months later Yammer released new overly complicated pricing, complete with asterisks and fine print that has left many trying to understand exactly what it all means.

The Questions over Yammer Pricing?

Does the Yammer paid plan require a 2-year commitment now? Is there no more option for a monthly pay plan?  Do some Yammer pricing plans now require my company to have a Microsoft EA agreement?  What’s that and does it really require 250+ users?  What if I’m not a MSFT EA customer? Or what if my organization has less than 250 users?  Why are there 4 pricing plans displayed, but only 2 are actually available now?

Note to large software vendors:  When your licensing/pricing is so complicated it creates the need for an ecosystem of new consulting companies to help customers understand your licensing model, it may be a signal your pricing is too confusing.  (If you need help understanding MSFT EA licensing, MSFT Advisors is one of these consulting companies).

Yammer Pricing – The Answers

The good news is Yammer’s free trial remains relatively unchanged.  The bad news is almost everything else about Yammer pricing has changed.

If you want to upgrade to Yammer’s paid plan, be prepared to sign a 2-year agreement.  Yammer customers are reporting the low advertised price is not available without a long-term commitment, usually 2-years.  It’s unclear if there is any offer, even at a higher price, available to customers preferring a monthly pay option.

If you are a large organization and have a Microsoft Enterprise Agreement in place, there will be two new Yammer price plans coming in March 2013.  However, if your organization is not a MSFT EA customer (requires MSFT EA contract and minimum 250 employees) the new plans do not appear to be available to you.

The Take Away

If you are a MSFT EA client, don’t mind longer term commitments, and your organization’s security policies allow multi-tenant shared cloud applications, Yammer may be an option for your organization.

However, Yammer is likely not a fit for you, if ANY of the below apply to your organization:

Other Options

If Yammer pricing, or lack of on-premise and private cloud deployment options are causing you to look elsewhere for your Enterprise Social Network, you are not alone.  MangoApps, a Gartner “2012 Cool Vendor” in Social Intranet Software & Collaboration tool, is filling the void.

MangoApps offers SMB and mid-market companies a robust Enterprise Social Network. You can pick from Social intranet or Team Collaboration, You can also have both.  Customers have a choice of deployment options, including traditional SaaS, private cloud, or on-premise.  Customers can choose monthly pay, annual pay, or perpetual licenses for on-premise. Customers can also choose their data center location, when signing up to ensuring better performance and keeping their data close to home data centers in N. America, S. America, Ireland, Germany, Asia, & Australia. The minimum user requirement is 10 users for shared cloud or SaaS and 100 users for private cloud or on-premise, pricing is aggressive and super simple.

About MangoApps

Founded in 2008, MangoApps is the leader in cloud-based employee intranet, engagement, collaboration, and HR software. MangoApps is privately held and is based out of Seattle, WA with an office in Pune, India. Businesses of all sizes use MangoApps products to modernize, consolidate and streamline many of the siloed applications employees use into one single platform. MangoApps’ focus on providing a complete employee experience enables employees to work in one environment, dramatically improving adoption, engagement, and team productivity. Visit us at www.mangoapps.com to learn more.