Jive Software has raised a $30-million round of financing from two legendary Silicon Valley venture capital funds — Kleiner Perkins Caufield Byers and Sequoia Capital — that the company says will help it take the concepts of social media and integrate them into the enterprise. Jive recently launched an ambitious product road-map that includes an all-in-one social dashboard for companies called “Jive What Matters,” as well as an open API and an open application marketplace. It remains to be seen, however, whether companies want to integrate social-networking principles and behavior into their businesses, and how they choose to do so.
New Jive CEO Tony Zingale, who took the position in February after previous CEO David Hersh became chairman of the company, said in an interview that the investment from Kleiner Perkins and Sequoia was a vote of confidence in Jive’s vision (Sequoia also participated in the company’s previous round of financing, which raised $15 million in 2007). The last time the two Sand Hill Road firms invested $30 million in a startup together, “it was a company called Google,” said Zingale. The Jive CEO said the company may use some of the financing round for acquisitions.
Jive is one of several enterprise-software providers trying to bring social-networking principles into a corporate setting, a market Zingale says has yet to benefit from the productivity boosts and other benefits that come from enterprise 2.0. The past 10 years, he said, “has been a lost decade in enterprise software.” Other providers going after aspects of the same market include Socialtext, Salesforce.com, with its recently launched Chatter feature, and offerings from Microsoft (through its Sharepoint suite) and IBM (with Lotus).
Zingale took some shots at Salesforce and other companies he said are simply trying to “bolt on” social features to existing legacy products that are “masquerading” as enterprise 2.0 solutions. “Salesforce is running around talking about [Chatter] being the Facebook of the enterprise,” he said. “But they still have a CRM [customer relationship management] solution that is the bulk of their business.” Zingale said Chatter was “a great marketing attempt, but it falls far short of delivering on the value that customers want in terms of collaboration inside and outside the company.”
Embedded below is Zingale’s keynote presentation from the Enterprise 2.0 conference last month in Boston:
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