How The Launch Of Facebook Workplace Will Impact Jive Software

Following the launch of Workplace by Facebook Inc FB last week, Credit Suisse said it sees the development as posing competitive threat to Jive Software Inc JIVE.

Facebook's Workplace

Workplace, formerly known as Facebook at Work, is an enterprise-focused version of its consumer social networking platform. Facebook indicated that it has 1,000 organizations on the platform. These organizations have been beta testing the platform.

Long-Term Threat To Jive, But Near-Term Impact Limited

Analyst Michael Nemeroff of Credit Suisse believes Workplace, backed up by Facebook's ubiquity and extensive market reach, could evolve into a promising product. That said, the firm believes Workplace will have limited impact on Jive's near-term prospects, as Facebook has a tall order before it to demonstrate that its platform can provide security, reliability and data integrity.

Related Link: Facebook May Be Focusing On "Half-Baked" Marketplace Instead Of Video

Collaborative Ability Limited

Credit Suisse noted that Workplace's ability to integrate with other enterprise productivity applications and document repositories is limited. Accordingly, the firm believes its collaborative capabilities and pervasiveness among enterprises versus Jive's vendor agnostic collaboration hub strategy that integrates with a range of other enterprise productivity tools and systems such as Office 365, Google for Work, SharePoint and Dropbox is limited.

Ratings, Price Targets

• Facebook: Outperform.
• Jive: Neutral; $4.

In pre-market trading, shares of Facebook were up 0.17 percent at $127.88, but at last check, they were up 0.15 percent at $128.07. Jive shares were down 0.74 percent at $04.02.

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