Microsoft acquires Colloquis

Microsoft representatives have announced the acquisition of privately-owned firm Colloquis, a maker of conversational online business solutions. Terms of the agreement were not announced.

Colloquis software allows the sending of instant messages that retrieve conversational answers through artificial intelligence programs, and the deal is being touted as allowing Microsoft a new capacity to add tools to its platform to put conversational capabilities into its software.

CRM Buyer reckons that “Microsoft is clearly preparing to get more aggressive in a CRM market that IDC predicts will reach US$11.4 billion by 2008,” and the suddenly ubiquitously quoted Yankee Group analyst Sheryl Kingstone stated in the same piece that the acquisition “will give Microsoft a greater repertoire of tools and technologies that enhance the customer experience online, and it will do it in a variety of ways.”

The first Microsoft offering to be based in Colloquis will be the managed service Windows Live Service Agents, and the early experimentation with the program will be in the company’s Xbox milieu. Microsoft PR has stated that “The Colloquis product’s technical flexibility makes it an excellent fit with other self-service options that Xbox plans to release in the fall.”

Based in New York City, Colloquis was originally fouded as ActiveBuddy in 2000. The company was later rechristened Colloquis to “provide conversational business solutions delivered over multiple messaging channels.” Colloquis’ first Automated Service Agent system was developed for Comcast in October 2003. Today, Colloquis natural-language technology is employed by companies including Time Warner Cable, Cingular Wireless, Panasonic and Vonage.