Microsoft Buys Colloquis for Natural Language Technology

Published: October 18, 2006

by Alex Woodie

Microsoft yesterday announced the acquisition of Colloquis, a developer of natural language processing technology. Microsoft plans to use the technology to build Web-based customer service applications that mimic human-to-human conversions, both for its own use and for use by its customers.

Colloquis, which is based in New York City, has sold its natural language processing technology to some of the biggest customer service organizations in the country, including Cingular Wireless, Comcast, Cox Communications, Time Warner Cable, Vonage Holdings. With such a strong pedigree in telecom customer service systems, it's not surprising that Microsoft plans to incorporate the technology as Windows Live Service Agents in its Customer Care Framework (CCF) application.

Microsoft also plans to use the Windows Live Service Agents to serve its Xbox customers. The Colloquis technology will complement other self-service capabilities that Microsoft is planning to release to gamers this fall.

"Today's 'anytime, anywhere' world has established a standard of instant and easy access to all forms of information, media, and content," says Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. "Colloquis provides Microsoft with the tools and platform to build conversational capabilities into a wide array of applications that enable businesses to facilitate a simple and rewarding online experience for their end users."

Stephen Klein, Colloquis CEO, says his former company's technology is in good hands. "Microsoft has the resources to not only unlock that potential, but to leverage its expansive customer base to create truly innovative real-world uses. We're excited to see what the future holds," he says.

Terms of the acquisition were not disclosed.