It looks as if Bill's Boys are gearing up to hit the VoIP market hard, after the purchase of an Internet Telephony company. Whilst Microsoft already had VoIP, it hadn't got the capability to do a 'Skype-Out' type of call - until now:
Microsoft is preparing to enable computer users to make a normal phone call from their PC.
The computer giant has increased its presence in the fast-growing internet phone sector by purchasing leading player Teleo for an undisclosed sum.
Microsoft and rivals AOL, Google and Yahoo all currently allow phone calls between computers, but not yet to a domestic or mobile handset.
Teleo's technology allows computers to make and receive standard phone calls.
More from the BBC here
This will worry Skype and other 'small' VoIP outfits - Microsoft lumbering into the arena, with Yahoo in tow. Will Skype survive being clobbered by Redmond? And would you use a VoIP product from Microsoft? And if not, why? Principle, or fear of misrouted calls?
Discuss to your hearts content in the news forum
, where the operator is always ready to connect you to the debate!