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Chatter is more like a private enterprise version of Twitter (small messages, 'I'm working on X right now')

Yammer is more like a private enterprise version of Facebook, lots of groups and media postings and timeline/widgets commenting similar to Facebook.

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I think Chatter is closer to your description of Yammer than Twitter. It really revolves around groups and updates on objects, and it has private messaging now.

Ironically enough, yammer started out as a twitter clone for the enterprise, and evolved in to something more like a private facebook.

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