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Summary:

Yahoo bought DialPad and perhaps that is an incentive enough for other majors – Google and Microsoft – to make a VoIP play as well. There is word that Microsoft is in talks to acquire Teleo, a smallish VoIP player based in San Francisco. It has […]

Yahoo bought DialPad and perhaps that is an incentive enough for other majors – Google and Microsoft – to make a VoIP play as well. There is word that Microsoft is in talks to acquire Teleo, a smallish VoIP player based in San Francisco. It has one of the better SIP implementations.

Teleo adds VoIP to the communications tools already being used by Windows users – cell phones, email, and web browsers. You can receive calls on a PC, or answer them on your cell phone. By clicking on an email address and you can be connected to the person who sent it, if they have VoIP capability.

Teleo is very similar to Microsoft’s Communicator which works well with others Microsoft offerings such as Outlook. But that is primarily an enterprise product, and has been a big area of focus for Microsoft. I am pretty sure Microsoft is looking for ways to add VoIP capabilities to some of their consumer offerings.

Like Skype, Teleo also uses Global IP Sound’s GIPS voice engine. Sources tell me that the founder of the company, Peter Sisson might have also left the company, and the deal is all but done. I dropped him an email but have not hear back from him as yet. Sisson, prior to Teleo was founder and CEO of WineShopper.com, an online wine retail and fulfillment company now operating as New Vine Logistics. I have not been able to raise the PR people. Stay tuned for further details.

  1. *michael parekh on IT* Wednesday, June 29, 2005

    ON MICROSOFT ACQUIRING VOIP START-UP IMPLICATIONS

    FOR WHOM THE BELL TOLLS This may be be premature, but Om Malik seems to have a scoop on Microsoft putting the finishing touches on acquiring Teleo, a new and promising internet telephony/VOIP startup in San Francisco.

  2. But why? Where does a Teleo service fit in Microsoft?

  3. marry the feature/client software with the microsoft’s other products. it might be easier than trying to reinvent the communicator. i think the client software from teleo is actually pretty good. surprisingly good. in addition teleo has better capabilities in trying different phone numbers together.

  4. From wine to VoIP

    Microsoft to buy Teleo, a San Francisco VoIP company? According to scoopster Om Malik, a deal is in the works. Everyone else is buying VoIP (Yahoo bought Dialpad), so why not? CEO Peter Sisson, you may recall, was the guy was founder and CEO of WineSh…

  5. I agree that Teleo alone has merits.

    But is MS interested in a client or a service? Microsoft has clients galore – one more adds clutter (not that that stops them).

    I just cannot rationalize a lot of interest from a high margin business like Microsoft – or even MSN – in pushing penny telephone termination minutes as microtransactions.

  6. I don’t know why MS would buy Teleo, but I have a unique perspective. Rather than integrating Teleo into their own voip service(s), MS could buy Teleo as an offering in their product line. MS is primarily in the business of selling software and Teleo is a very attractive client/engine for various types of organizations, including ISP’s, web services, and integrated voice products and services.

  7. In fact, I always saw this as Teleo’s business strategy – not so much the direct consumer, but rather a wholesaler of their product.

  8. Personally, I thought Teleo would be very attractive to Google.

  9. If MS does use it for its own client needs, here are the reasons Teleo is attractive to MS:

    1. Extensive integration into MS Office applications
    2. SIP based
    3. Traverses firewalls without special setup
    4. PSTN connectivity
    5. Works in Corporate environments

    I could see MS buying Teleo based on any of #1, 3, or 4 alone. Teleo is known for its MS integration; firewall traversal is a big hurdle for SIP; and MS could just be looking for PSTN functionality.

    I’ll be interested to see how Yahoo succeeds in the firewall traversal. One reason why Skype is the best.

  10. guys thanks for making all those great points. just wondering if you had thoughts on who are the likely players who could get snapped up – i.e. most importantly who will google by to get into the game.

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