Microsoft announced on Tuesday that it has acquired Teleco Inc., a small San Francisco company that distributes VoIP software, which allows users to make phone calls from computers to traditional telephones.

Although the Redmond, Washington-based Microsoft already uses VoIP technology in some of their products, they seem to be trying to increase their presence in the internet telephony industry. And buying out the privately owned Teleo seems to be a great first step in doing this.

According to Blake Irving, a corporate vice president with Microsoft Network (MSN), the company is currently making plans to integrate the Teleo technology into some of their existing products such as MSN Messenger and the MSN localized search offering. [co-published with friend site Telecom News]