Speaking at the event, Georg Ell, Europe, Yammer’s general manager for Europe, Middle East and Africa, said that: “This move is a significant sign of the appetite for enterprise social networking and collaboration tools in the UK and EMEA at the moment,”.
Yammer’s Old Street offices on Great Eastern Street will soon accommodate 85 staff members.
Over the past year, Ell has said that having a local office has helped the company to improve customer service and convert enquiries more efficiently
“This has driven 6x [times the] growth in London alone,” he noted.
Microsoft valued the growing business at $1.2 billion, when bought Yammer in June. Since the micro-blogging service provider was acquired by Microsoft, the company has used its new resources to invest in London, setting up a larger office at the heart of the Tech City cluster.
Although Yammer has not yet reached breakeven point, Microsoft’s investment has been driven by the volume of new corporate clients that are signing up for the service. Currently experiencing rapid growth, the business attracts over 200,000 new users a month.
The surrounding Shoreditch office district has become home to some of the European home to some of most successful brands on the internet. Google has opened a multi-storey Google Campus, while Amazon and Twitter are also keen to tap into the creative and financial activity that the area has become famous for.
The arrival of major corporations has cemented London as Europe’s pre-eminent design and technology capital, but the increased demand for EC2 office space is putting pressure on rents for the UK’s dot.com entrepreneurs and start-up companies.