Microsoft is to acquire a Swiss software outfit that develops applications for internet telephony.

Financial details were not released but Zurich-based media-streams.com said it plans to work with the software giant to "accelerate the delivery of its unified communications vision".

In MS-speak it wants to "break down the silos of communication" by bringing together various modes of communication - email, IM, SMS, telephony etc - to "extend the unified communications experience to information workers".

In August, Microsoft snapped up privately held internet telephony outfit Teleo in a deal that positions the software giant against Skype in the already crowded VoIP market.

As in today's deal, financial terms of the deal were not disclosed. But Redmond plans to use Teleo's technology to allow users to make phone calls from PCs to traditional phones and mobiles as well as other broadband-connected PC users. ®