Analysis: Microsoft Moves Deeper Into VoIP

Its acquisition of VoIP start-up Teleo moves Microsoft deeper into the burgeoning world of Internet communications as the software company said it will combine Teleo’s technology with its existing MSN investments in VoIP.

The acquisition, announced late Tuesday, gives users the ability to click on any telephone number in Microsoft Outlook and Internet Explorer to make telephone calls, Microsoft noted. Financial terms of the 25-person acquisition were not disclosed.

“If you’re a product manager at Google, AOL or Yahoo, you have to be worried,” said VoIP pioneer Jeff Pulver in an interview. “If it chooses to, Microsoft could dominate.”

Pulver said Microsoft could provide more VoIP features on its XP operating system platform, which is SIP-compliant. So far, Microsoft has indicated it isn’t interested in providing traditional telephone service.

In announcing the acquisition, Microsoft noted that it has already integrated VoIP features in MSN Messenger, which has Instant Messaging features. PC users can call each other now on the Microsoft platform. The Teleo technology will enable PC users to make some calls to cell phone and wireline subscribers.