With Microsoft in Sight, Cisco invests in Xobni

Xobni, a San Francisco-based maker of software for email services, has raised $7 million in fresh funding led by Cisco Systems. 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 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.

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