In a first of its kind of alliance, Yahoo and Microsoft are making their IM systems inter compatible in order to create a communications platform with around 350 million users account.
The users of both Microsoft and Yahoo would be able to send text messages over the internet and make voice calling using VoIP through their computers. The beta version would certainly cross over the user base of Skype. No money would exchange hands as part of the agreement and both the companies would continue to compete for users. Both the companies are also looking at moving their IM services to mobile phones, a service already being offered by Yahoo.
This arrangement is certainly going to put pressure on companies like Skype and BT and we have already seen traditional phone companies losing their margins to VoIP which is virtually free. This would certainly rub salts on their open wounds but one thing is for sure that both Yahoo and Microsoft are going to get benefits in form of advertisers.
One thing I forgot to tell you was that this arrangement will certainly break the heart of Google whose Google Talk or Gtalk as we fondly call it has still eluded success in the VoIP domain.
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