Michael Sampson's analysis of the Microsoft-Groove acquisition.

Scott Rosenberg thinks it's a pretty big deal

It's a smart move for Bill Gates and company -- an indication that they remain absolutely determined not to fall behind the competition, and a sign that Microsoft intends to push the boundaries of collaborative software's capabilities. It will be interesting to see where they take Groove: Let's face it, Windows and Office are both pretty creaky for users who want to share and coordinate work nimbly and quickly. Gee, maybe information technology does still matter, sometimes.

Slashdot : Microsoft to acquire Groove Networks

Not completely unexpected but still major news for all Grooveusers and developers: Microsoft buys Groove

Hoping to boost its collaboration software strategy, Microsoft on Thursday announced its intention to acquire Groove Networks, naming Groove founder Ray Ozzie as the company's CTO.

The deal calls for Microsoft to add Groove's products into Microsoft's Office System lineup of products and services, along with bringing over Groove's core development team. Ozzie, the creator of Lotus Notes, will report directly to Microsoft chairman Bill Gates.

Once the deal is approved, Groove will become part of Microsoft's Information Worker Business unit, and will continue to be based out of its Massachusetts headquarters. Company officials declined to disclose the financial terms of the deal. infoworld