Google Nov. 12 confirmed that it had acquired Gizmo5 for an undisclosed sum. Gizmo5 makes Web-based calling software for mobile phones and computers. Specifically, it provides a Web-based VOIP client that lets users make phone calls over the Internet, similar to programs such as Skype. Some speculate Gizmo5 will evolve into a new version of the Google Talk voice and video chat application, supporting Google Voice and its many voicemail management features, including automatic voicemail transcription. Many industry watchers agree this deal puts Google Voice and Skype, which Google reportedly tried to acquire earlier this year, on a collision course.
Google Nov. 12 confirmed that it had acquired Gizmo5 for
an undisclosed sum, giving the search engine technology that could help Google contend with PC-to-PC calling giant Skype.
Gizmo5 makes Web-based calling software for mobile phones and computers. Specifically,
it provides a Web-based VoIP client that lets users make phone calls over the
Internet, similar to programs like Skype.
However, while Skype's software is a proprietary
technology, Gizmo5 is based on the open SIP (Session Initiation Protocol) standard,
though it leverages proprietary codecs.
The deal is the second purchase Google made this week,
following the Nov. 9 acquisition of mobile ad giant AdMob for $750 million.
While Google officials were explicit in explaining how AdMob provides
mobile ad technology that Google lacks, the search engine was far less
forthcoming in describing how Gizmo5 would fit into its portfolio.
Resource Library:
Google said Gizmo5's engineers will be joining the Google Voice team "to
continue improving the Google Voice and Gizmo5 experience."
Google Voice is a phone management application that assigns
users a special Google number and rings work, home or mobile phones for its 1.4
million users. However, Google Voice can't directly connect calls made from
one computer to another, or one computer to a phone the way Skype can.
Google has said Google Voice users can use the Gizmo5 client softphone as an endpoint,
which means users can have calls forwarded from their Google Voice numbers and
pick those calls up at their computers.
EWEEK asked Google how exactly Gizmo5 would be used with
Google Voice, but a Google spokesperson merely referred us to this blog post and said: "this announcement does not change how Google Voice
works today."
VOIP Watch editor Andy Abramson
wrote that Gizmo5 will provide both software and PSTN termination, billing,
etc. to Google Voice.
Some speculate Gizmo5 will evolve into a new version of
the Google Talk voice and video chat application, supporting Google Voice and
its many voicemail management features, including automatic voicemail
transcription.
For now, while current Gizmo5 users will still be able to
use the service, Google is suspending new signups and existing users will no
longer be able to sign up for a call-in number.
Still, many industry watchers agree this deal puts Google
Voice and Skype, which Google reportedly tried to acquire earlier this year, on
a collision course.
Search Engine Land's Greg Sterling noted that he uses Skype on an iPod Touch as a phone and spends $2.95 per month
to make unlimited calls in the U.S. and Canada. He added:
"Expect a similar suite of calling plans and services to
roll out from Google Voice, making the traditional telcos quite grumpy.
Arguably Google has the capacity to popularize VoIP calling across networks in
ways that even Skype cannot. Previously the Google Voice service required an
underlying account and telephone number
from a traditional telco. Now it doesn't need one. When Google Voice originally
launched, we asked whether Google Voice was going to become a "Next-Generation
Telco?" The answer now is definitively 'yes.'"
Still, Google has a long, long way to go to catch Skype,
which has 500 million users and is as much a sweetheart application for users
as Googles Gmail, Windows Live Messenger, AIM and other applications. Trying
to dethrone that giant, which just got clear of some nasty litigation, will be
an incredible challenge.