The acquisition of the Zurich-based company comes two days after a Microsoft press conference, where it declared its future software-based services strategy will be based on 'collaboration' and 'Internet-based applications'.

The new online offerings from Microsoft are aimed at complementing the company's principal Windows and Office products, as well as those on the horizon. Windows Live will apparently 'bring together all the elements of an individual's digital world', while Office Live will help small companies do business online. Microsoft sees the future as a convergence of work, home and play. Office Live will be released in the US via an invitation-only beta in early 2006, while Windows Live is available for testing now.

The deal will mean Microsoft services will cover everything from email, instant messaging, SMS, audio, video, web conferencing and VoIP. Windows Live Messenger will get a beta release later this year - there are currently more than 185 million active MSN Messenger contacts worldwide.

VoIP is likely to be integral to Office Live. The aim is for small businesses to establish an online presence, making "complex technology affordable and easy to use ... empowering them to reach their goals," according to Rajesh Jha, general manager of Information Worker Services at Microsoft.

This move is certain to add pressure to telcos, who are already feeling the threat posed by VoIP services. It'll also increase Microsoft's competition with Yahoo, eBay and AOL, who all offer VoIP applications. Basic services will be free and include bundled advertising, although Microsoft will try to convince users to upgrade to more feature-rich packages.

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