Microsoft is to acquire Groove Networks, who are responsible for providing software for the 'virtual office'. The aim of the move is for Microsoft to provide software that can help geographically distributed work-groups to function the same as those that work in a single physical location. The software which Groove provides will wind up being included in a new version of Microsoft Office.

The addition of Groove products to the line-up of Microsoft Office System products aims to allow Microsoft to meet the needs of organisations that are creating borderless project teams comprising employees, customers, partners, suppliers, and contractors.