Microsoft, is quietly turning into a voice-over-IP powerhouse. It all started with the launch of its Microsoft Live Communication Server. Bill Gates says, 'Communicating in a better way has a huge impact for business,' and he states that he wants Microsoft to marry the PC, the cell phone and the desk phone. Recently, Microsoft teamed up with VoIP companies like Sylantro to offer hosted IP-PBX services, and now is rumored to have bought Teleo, a small VoIP company based in San Francisco. Microsoft's dominance on the desktop is helping the company extend its reach into the fast growing VoIP business, thus putting it in direct competition with the likes of Cisco. Teleo, for instance could help the company compete more effectively with the likes of Yahoo and Skype.