Unlike the all-aboard approach adopted by MySpace and Facebook, TownSquare is intended to be an internal network within a company.  Around 8,000 Microsoft employees have already had their hands on it, according to Heather Havenstein, and a few other businesses are testing the software, as well.

 Microsoft TownSquare

Havenstein reports, "TownSquare is fueled by enterprise news feeds that use Web services to query SharePoint for public information, such as promotions and company anniversaries, about an employee."  That’s an interesting (though slightly intrusive-sounding) twist on a successful formula.

Perhaps the most important thing, though, is that you shouldn’t be seeing the TownSquare named splatted across press releases and ads anytime soon.  Microsoft’s using it as "a platform to test the technology concepts," according to Havenstein, so a presentation at the Enterprise 2.0 Conference should at most involve a beta release.

With the scheduled demise of Windows Live Expo just around the corner, it’s smart of Microsoft to approach social media with a bit of care.  And since Yahoo has little to offer in the way of social networks, it’s also wise not to wait for any developments in that department.