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Yahoo, Microsoft Connect IM Systems

Written on
July 14th 2006
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A Times Online report has announced that Yahoo and Microsoft are forming an alliance that will allow users to send instant messages across their respective IM systems. Eventually, the communications platform will also allow users to make voice calls using VoIP technology. The joint platform was launched in beta today and is intended to eclipse internet telephony company Skype, also increasing pressure on telecoms as users migrate to virtually free VoIP systems. It is expected that Google will similarly feel the impact of this union, as its effort to break into the VoIP market with Google Talk has seen disappointing numbers.

“Instant messaging services are becoming a communications method of choice,” said head of Microsoft’s Communications Division, Philipa Snare. “There is a change taking place around the technology similar to that mobile phones underwent in recent years.”

Microsoft’s Windows Live messenger has more than 240 million active registered users, while Yahoo Messenger has about 110 million accounts, thus attracting strong advertising interest, as ad revenue provides the main source of income for both IM systems. Yahoo also charges users to make voice calls to conventional landlines. Both Microsoft and Yahoo are looking to extend their joint IM services to mobile phones, and Yahoo said that it would not rule out forging further similar partnerships, as it has recently announced a commercial partnership with eBay.



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