DimDim acquired by salesforce.com

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January 7, 2011

Got back from my Friday morning bike ride and popped open my Inbox. Lo and behold – exciting M&A news first thing in the day.

Dear Enterprise Customer::
As you may have already heard, Dimdim has been acquired by salesforce.com.  We realize you may be wondering what this means for you.
While your Dimdim Enterprise service will remain fully operational during the life of your current contract, we will discontinue the service on the date the contract expires and will not be offering any renewals or extensions.

Pursuant to the Hosted Enterprise Agreement (the “Agreement”) between you (“You”) and Dimdim, Inc. (“Dimdim”) governing the provision and use of Dimdim’s Services (as defined under the Agreement), Dimdim is hereby exercising its option not to renew the Agreement after the expiration of the current term (either the Initial Term or current Renewal Term, as applicable, and referred to herein as the “Term”). For clarity, the Agreement shall not automatically renew nor may the Term be extended at Your request. Nothing herein is intended by Dimdim to diminish or waive the rights or obligations of either party under the Agreement until the expiration of the Term. Following the expiration of the Term, except for any confidentiality obligations under the Agreement that expressly survive termination of the Agreement, neither You nor Dimdim shall have any further rights or obligations of any kind under the Agreement, including the right to access or receive any Software, Services or Technical Support as defined therein.
I have always thought that client-less Web conferencing was a great idea and DimDim was pretty good software, although the Open Source part of it turned out to be marketing spin (they never really stood behind the project).  Although the opportunity for leveraging an innovative Open Source project seems to have gone by the wayside, perhaps the salesforce.com acquisition opens a new space of business opportunities for Facebook style applications with Web conferencing and collaboration on the SF.com platform .
Time will tell.

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