Bringing voice technology to everyday life, says Ballmer.
Microsoft has announced that it will acquire Tellme Networks, a voice services technology provider.
Tellme specialises in high-volume voice services including directory assistance, enterprise customer service and voice-enabled mobile search.
"Speech is universal, simple and holds incredible promise as a key interface for computing," said Microsoft chief executive Steve Ballmer.
"Tellme brings to Microsoft the talent, technology and proven experience in speech that will enable us to deliver a new wave of products and revolutionise human-computer interaction."
Founded in 1999, privately held Tellme answers calls for information such as finding local businesses, driving directions, sports scores, stock quotes, weather, news and movie show times.
Tellme's voice platform analyses caller requests to improve the system's accuracy and overall caller experience.
According to Microsoft, potential areas of development resulting from the deal will range from hosted voice-enabled customer service offerings that complement Microsoft's existing unified communications offerings, to voice user interfaces in existing products to search services on mobile phones that integrate with Live Search for mobile offerings.
"We have made great strides in speech technologies, but have only scratched the surface of what is possible," said Jeff Raikes, president of the Microsoft Business Division.
Financial terms of the acquisition were not announced. The deal is expected to be completed in the second quarter of 2007.