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VoIP is Next Step for Microsoft and Yahoo

The duo is after Skype

By Marius Oiaga, Technology News Editor

15th of July 2006, 07:47 GMT

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The Microsoft Yahoo marriage via Instant messaging is in Beta honeymoon at this point but the two companies have made public their commitment to continue furthering their collaboration in the IM domain. The new interoperability
service launched as a beta between Yahoo Messenger with Voice and Windows Live Messenger has created the world's largest instant messaging community with over 350 million users.

As it is still in beta, the cross platform interoperability is short of a few features. In this context, both Microsoft and Yahoo have confirmed that the next step in bringing the IM bridge to its full capabilities is to enable VoIP and video-conference interoperability. Also the duo have specified that they intend to bundle other Instant Messaging platforms and that discussions concerning the matter are in progress with various industry representatives, but were reluctant to specify details.

A potential PC-to-PC free VoIP service provided both by Microsoft and Yahoo to the 350 million IM users would make the two companies a Voice over Internet Protocol heavyweight and will place the in direct competition with Skype Technologies, which currently dominates the market.

Commenting on the two companies VoIP market strategy, in-house representatives confirmed the line of actions but stated that first the IM interoperability service must successfully exit Beta phase.
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