As reported by Ed Sim of Dawntreader Ventures and The Gizmo Project Journal, SIPphone has received $6 mm in funding. For those of you who don't know about SIPphone and their Gizmo, I have previously posted on the battle between Gizmo and Skype. While I was an early adopter of Skype, I have switched to SIPphone and Gizmo because I believe in the philosophy of the open network. Some people at AlwaysOn Network have endorsed Skype as one of the best technology companies, despite the fact that Skype is a closed network. I am surprised at this endorsement, but the folks at AlwaysOn claim that Skype is virtually an open network because it is available to everyone in the world. I don't agree and my feeling is that the open network will go where the industry goes, while the closed network risks being left behind as the industry changes.
Interestingly, Ed has mentioned in his post that their investment does not signal a "zero sum" game between it and other VOIP/IM players (read Skype), rather a battle between VOIP/IM/emerging digital technology and incumbent telephony companies. While I agree that the incumbent telephony companies are running scared, there will inevitably be a battle between the closed and open networks. Coincidentally, Skype has upped the ante on VOIP by recently announcing the upcoming availability of Skype on mobile networks.
I can't wait to see how it all plays out and I look forward to how both SIPphone's Gizmo and Skype transform the industry. Despite my preference for Gizmo I can be reached on either with the handle cxoventures.
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