Google buys GIPS, Skype quakes?

Google has acquired GIPS (Global IP Sound) a vendor of high quality voice and video codecs used by many VoIP players (except Skype).

Skype have over 600m users and developed their own HD voice codec known as SILK.

Google bought Grand Central and then based their Google Voice service on top of it. Google already had their Google Talk service which is just their implementation of Jabber (or the XMPP protocol). It was possible to 'talk' to other users on Google Talk with their Jingle extensions (which Google published). Google Voice is their preferred and proper VoIP service. Unfortunately they didn't have a nice front-end for Google Voice so they acquired Gizmo5 the service from Michael Robertson. Gizmo5 had a reasonable user base and it was standards based using SIP as the VoIP protocol, though the back-end was meant to be based on Asterisk and other open source technologies. Google Voice has a very good back-end and so the tie-up with Gizmo5 gave them a nice front-end and Google could drop the Gizmo5 back-end stuff.

Now with the purchase of GIPS giving Google 'free' access to high quality voice codecs, they look to really threaten Skype's dominance of the VoIP market, especially if the launch Google Voice outside of the US.

Gizmo5 sells out to Google

The rumours have been flying and it was thought that Gizmo5 would be the sensible acquisition for the new Skype as a basis for replacing the P2P technology that was reliant on JoltID (and why JoltID was suing Ebay).

Events have now significantly changed the market, JoltID has come to an agreement with Skype/Ebay where-upon their P2P technology will be owned outright and Gizmo5 has been purchased by Google.

Gizmo5 was started by Michael Robertson and has around 6m users while using non proprietary SIP VoIP protocols. It is expected that Google will integrate Gizmo5 into their GoogleTalk product line (and maybe Google Voice).