Microsoft: Tellme something good

As rumored, Microsoft confirmed today that it's buying Tellme Networks, a privately held voice technology company. This being a private acquisition with no material effect on financial results, the parties were mum on the price, but the aforementioned rumors included figures in the neighborhood of $800 million, a neighborhood in which Microsoft hasn't gone shopping for five years. Tellme, whose technology is used by FedEx and AT&T, brings Microsoft expertise in voice recognition and particularly mobile search that could show up in a lot of places. "Speech is universal, simple and holds incredible promise as a key interface for computing," said Microsoft CEO Steve Ballmer in a press release. "Tellme brings to Microsoft the talent, technology and proven experience in speech that will enable us to deliver a new wave of products and revolutionize human-computer interaction." Redmond is betting big on software-based telephony and its integration into online and wireless services, and this buy fits the master plan. Said Jeff Raikes, president of Microsoft's business division, last week, "Software is set to transform business phone systems as profoundly as it has transformed virtually every other form of workplace communication. Over time, the software-based VoIP technology built into Microsoft Office Communications Server and Microsoft Office Communicator will offer so much value and cost savings that it will make the standard telephone look like that old typewriter that's gathering dust in the stockroom."