Microsoft sees billions from VoIP shift
Microsoft sees the shift by business organisations to Web-based phone systems running on software to generate “billions” of dollars in revenue for the company, a top executive said on Tuesday.The move to Web-based phone systems will gain momentum during the next three years and Microsoft’s new server software will transform the telecommunication system industry the way its Windows operating system changed the computer industry, said Jeff Raikes, president of Microsoft’s business division.
“You’re going to see history repeat itself,” said Raikes in an interview ahead of a keynote speech at VoiceCon Spring 2007, an industry conference for Web-based telephony.
Microsoft’s strategy in addressing the Voice over Internet Protocol (VoIP) business market differs from that of Cisco Systems Inc. which is selling fully-integrated systems incorporating its network equipment with its own software.
On the other hand, Microsoft aims to create a distributed business model like the PC industry with its software at the centre. Last year, Microsoft and Nortel agreed on a broad alliance to address the VoIP market.
The software segment of a transformation to VoIP will grow to a $35 billion (18 billion pounds) to $40 billion market, according to Raikes, and Microsoft plans to get a piece of the action.