Microsoft Corporation (NASDAQ:MSFT) has reportedly swallowed up Parature, a company which provides software as a service (SaaS) for customer service applications. That’s according to TechCrunch, which cites “sources close to the deal.”

Microsoft

Microsoft Dynamics gets a boost

The acquisition was said to be worth $100 million, and it provides Microsoft’s customer relationship management (CRM) platform, Microsoft Dynamics, with a “world-class self-service knowledge base to connect with customers.” It will give the platform a boost in connecting with customers across a number of channels, including Internet, social media, chat and email.

Parature has been around since 2000 when it was founded in a Cornell University dorm room. It started with a chat app which was designed for online help. That app was called Cyracle. Then three years later, the company’s name changed to Parature, which is meant to reference the “Paradigm of the Future.” Venture capitalists have sunk millions into the company, which now has 70 million end users, which is double the number it had in 2011.

Microsoft completes the customer experience

Microsoft Corporation (NASDAQ:MSFT) has been missing a key component of its customer experience. Many customers no longer want to call a phone number to get help. Instead, they look online or want to chat with someone about their problems over the Internet.

With the Parature acquisition, Microsoft gains the process capabilities in terms of routing information through a workflow which is similar to that of a call center. This enables Microsoft to widen its abilities in serving customers while enhancing its competition against companies like CRM leader salesforce.com, inc. (NYSE:CRM).

Parature’s knowledge base is its strong suit

Many experts consider the knowledge base owned by Parature to be the market’s most modern one. It goes head to head with Kana and Moxie Software, and Constellation Research founder Ray Wang told TechCrunch that much of the knowledge base technology was created 10 or 15 years ago, making Parature’s base that much more modern than other systems. The company specializes in integrating context with search, learning and prediction while tying in social data and processes, enabling people to get the right information.

At this point, Microsoft Corporation (NASDAQ:MSFT) apparently has Parature integrated into its Dynamics platform. Parature will reportedly continue running independently for now.