Posted May 18, 2010 7:10 am by with 6 comments

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Google continues to plow forward swallowing up whatever it needs to do whatever it wants. Google will acquire Global IP Solutions Holding which will give it control of the voice over IP (VOIP) engine that sits behind offerings by competitors like Yahoo and AOL. The company makes processing software for voice and video over IP solutions.

If you are Google this is just another day in the world of M & A but for the rest of the world it’s another day in watching Google control just a little more of the things that others need to run their operations. Good for Google but for the others maybe not so much.

ZDNet reports

Google on Tuesday said it will acquire Global IP Solutions Holding, which makes processing software for voice and video over IP, for $68.2 million. The deal means that Google will own the voice and video conferencing engine behind its competitors’ instant messaging systems.

The search giant said it will use Global IP Solutions (GIPS) for real-time video and audio communications over an IP network (statement). Google is paying 27.5 percent premium over GIPS closing price May 14. GIPS trades on the Oslo Stock Exchange.

While the voice and video conferencing offerings of Yahoo, AOL, WebEx and others may not seem insignificant in the big picture its what might happen next to these offerings that should be of concern. It is a bit ironic that GIP’s counts Chinese search giant Baidu as a customer as well.

Right now, it is being called “business as usual” while under existing contracts. According to GIP’s CEO Emerick Woods in his letter to his customers they may want to be shopping because there are no guarantees. His letter reads.

Google has been a valued customer of GIPS for many years and has greatly contributed to the development and innovation of our products to date. We have always respected their position in the industry and share the common vision of accelerating next generation innovation in the web-based solutions for real time communications.

You may have many questions regarding this announcement but for now, until the successful completion of the offer, it will be business as usual for us here at GIPS. You will continue to interact with the same team members and can expect the same level of support and commitment that you have received in the past. Google has informed us that nothing will change for current and prospective customers of GIPS. Following the completion of the Offer, Google intends to continue servicing GIPS’s customers in accordance with existing contracts while offering them the opportunity to transition to new offerings developed by Google. Although we will not have more significant details until the process is complete and full integration efforts are underway, we will keep you informed throughout as events arise.

Little comfort to clients other than Google and the writing on the wall is pretty clear.

Google is assembling the pieces between its Google Voice, its Gizmo5 purchase and now GIP’s to compete with Skype in their space. Google figures that between most people being mobile in the next few years its getting more traction with Android. Then as more people move to a wireless only voice solution they can also help them get other voice and video conferencing services as well as free voice services over IP. All bases are being covered thus giving Google a very strong position in the communications industry as well as likely remaining the search giant it is currently.

So is this another opportunity to cry monopoly against Google or is it just a reality of the new world order that Google will have its hand in nearly everything we do in the future?

Any thoughts?

  • Whatever happened to the SIP protocol for VOIP? I thought that was supposed to do away with all the proprietry systems (not including Skype of course).
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  • This is going to be tight, i can’t wait to try it
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  • Google is buying anything and everything where competitions has their hands in. M & A dept has been busy big time lately…:)

  • It’s a great step from google, In this year google launch their mobile phone and now google is targeting voip telephony field.

  • This has been an interesting article, thanks for taking the time to cover it, it’s really helped me
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  • Everybody in the industry says that Google wants to control the core VoIP technology. Its bid for GIPS makes much sense in this respect. But what it means for the customers of GIPS, and some of them, by the way, are in direct competition with Google. It’s not unlikely they will be left with
    limited or no support at all. Google will use VoIP as a platform in its Android OS, Google Chrome and probably in its Google Apps. Google will need GIPS’ expertise and engineering resource to back its VoIP strategies. SPIRIT DSP which successfully competed with GIPS over all these years is now the only independent VoIP technology company on the market. SPIRIT dislodged GIPS from Skype and was named among the Top 10 VoIP leaders by FierceVoIP. Today SPIRIT offers its VVoIP platform on a
    variety of desktop and mobile platforms, supporting not only Google’s Android but iPhone,Symbian, Windows Mobile. SPIRIT offers a video server with 1000-channel capacity. Now SPIRIT is the number one choice for service providers, application developers, and telcos that are deploying voice and video communication services.