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With Microsoft in Sight, Cisco invests in Xobni

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Xobni, a San Francisco-based maker of software for email services, has raised $7 million in fresh funding led by Cisco Systems (s CSCO). Existing investors Khosla Ventures, First Round Capital, Baseline Ventures and Atomico also invested in this round of founding. In a blog posting, the company said that their Outlook add-on software has been downloaded more than 1.5 million times. They are currently conducting product trials with Fortune 500 companies.

Xobni has partnered with LinkedIn, Facebook, Yahoo! Mail, Skype and Hoover’s to bring their data into user’s Microsoft Outlook. Cisco’s investment in Xobni is part of its continuing tussle against Microsoft (s MSFT) over the concept of collaboration, as I noted earlier. Cisco last year bought Jabber to compete more effectively with Microsoft, and it had also acquired email startup PostPath for $215 million.

6 Responses to “With Microsoft in Sight, Cisco invests in Xobni”

  1. I think this is great news for Unified Communications. While I haven’t been impressed with Xobni’s search capabilities, I think their product offers a lot of promise for being able to better organize email. Since so much of our communication revolves around email, it is imperative for UC applications to integrate with Outlook and other email solutions. While it is unclear exactly what Cisco plans to do with Xobni, it can only be a positive sign if they are realizing the importance of search and information organization to communications.

    • @John,

      You are right. On a macro level Xobni is a good idea, great vision but like you I have struggled with the actual product which does much less than the company promises. Hopefully in time they will get this right – they are working hard and trying their best. I give them credit for trying. What Cisco will do or will be able to do remains to be seen. I am not sure they got the DNA to get this right, my two cents :-)