From the Microsoft press release Microsoft Acquires Teleo, Innovative VoIP Technology Company we learn

REDMOND, Wash. — Aug. 30, 2005 — Microsoft Corp. today announced it has acquired Teleo Inc., a provider of voice over Internet protocol (VoIP) software and services that enable the placement of phone calls from PCs to traditional phones and that deliver this technology in unique ways through a variety of software and Web applications. Microsoft expects to combine the technology and expertise of Teleo with the existing VoIP investments of MSN to further develop products and services that connect consumers to the people and information that most matter to them. Financial details were not disclosed.

Founded in 2003 and headquartered in San Francisco, Teleo is a privately held company whose initial planned service offering, also called Teleo, was designed to allow customers to use their PC to make phone calls to cell phones, regular phones or other PCs. Through its integration with Microsoft® Outlook® and Microsoft Internet Explorer, the Teleo service was designed to facilitate click-to-call dialing of any telephone number that appears on-screen, for example through a Web site or via search results or e-mail.

VoIP technology already is prominently featured in MSN® Messenger as well as other Microsoft products and services. Microsoft plans to incorporate and expand upon Teleo technologies, integrating them into the infrastructure that supports MSN and ultimately projects delivering new VoIP consumer applications in future releases of MSN services.

This is pretty good news for MSN Messenger users. Instant Messaging is more than just sending text from one computer to another. Voice and video conversations are also valid ways to communicate using our instant messaging client. Also the ability to communicate with people on other devices besides their computers is also one thing we think is important. In fact, while I was in Nigeria I made heavy use of MSN Messenger's SMS to IM conversation capabilities to send messages to my girl friend's phone while she was at work back here in Seattle.

It's all about communication and the addition of the Teleo folks to our fold will only increase and improve the communication capabilities of MSN Messenger. Excellent.