Why did Microsoft pay one billion dollars for TellMe?

I read the VoIP Blog commenting the Microsoft and TellMe deal. "So the confusion about this potential acquisition may come from the fact that Tellme has been in Silicon Valley all these years and Microsoft never acquired them. Why now? What makes this voice portal solution provider an exciting acquisition target today?"

The writer is Rich Tehrani.
Rich Tehrani is an IP Communications industry expert, visionary, author and columnist. He founded the first magazine focused on VoIP in 1998 and, as President of TMC, is the owner of the registered trademark for the term Internet Telephony. In 1999, Tehrani launched Internet Telephony Conference & Expo and has watched it grow into the best attended VoIP show in the world. Tehrani is also the founder of TMCnet, the most popular communications/technology portal in the world. More recently he launched TMC's two newest titles, SIP Magazine and IMS Magazine.

The answer lies in two parts.

Microsoft’s competition with Google and leveraging TellMe’s mobile search technology allows Microsoft to have a potential advantage in this space. But to be honest Microsoft has its own speech initiatives as well so there is a some deal of overlap in such an acquisition.

Unfified communication and CRM offerings
Another potential reason for the deal is to bolster Microsoft’s hosting and communications portfolio. SaaS is all the rage these days and Tellme gives Microsoft a platform by which to integrate with their unified communications and CRM offerings. Tellme becomes the ultimate puzzle piece in this scenario allowing Microsoft to compete with Google and provide customers with a well respected SaaS communications service as well.

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