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Microsoft Buys CRM Communications Firm Colloquis Jennifer Le Claire 10/19/06   Microsoft (Nasdaq: MSFT) on Thursday said it has acquired privately owned Colloquis, a provider of conversational online business solutions that feature natural language-processing technology. The company's software lets customers send Instant Messages that retrieve conversational answers through artificial intelligence programs. The deal will allow Microsoft to offer new services to businesses with online operations, as well as incorporate Colloquis technology into its own products. Terms of the deal were not disclosed. "Today's 'anytime, anywhere' world has established a standard of instant and easy access to all forms of information, media and content," said Steve Berkowitz, senior vice president of the online services group at Microsoft.  The acquisition gives Microsoft tools and a platform it needs to build conversational capabilities into its software, Berkowtiz added. Microsoft is clearly preparing to get more aggressive in a CRM market that IDC predicts will reach US$11.4 billion by 2008. Initially, Microsoft will offer a managed service called Windows Live Service Agents based on the existing Colloquis Automated Service Agent offering. Windows Live Service Agents provides businesses with a hosted Web-based customer service application that interacts with end users in conversational language. Windows Live Service Agents will augment Microsoft's existing contact center solution, Microsoft Customer Care Framework, the company said. "This 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," Yankee Group analyst Sheryl Kingstone told CRM Buyer. "Most importantly, it will help Microsoft provide more dynamic information so that the customers find the answers they are looking for."