In a surprising move, networking giant Cisco has recently challenged Microsoft's $8.5 billion takeover of Skype at the European Union's top court to ensure Microsoft won't block other video conferencing services. 

To rewind: In a bid to accelerate efforts to improve real-time communications, Microsoft has closed its US$8.5 billion acquisition of Skype in October 2011. This move is likely to benefit Microsoft consumers as well as enterprises. With skype deal, Microsoft is mulling to grow in areas such as online socializing, mobile phones and digital video to reduce its traditional reliance on its Windows and Office software for revenue. 

Now a question arises here, why networking giant Cisco is challenging the Microsoft-Skype deal? 

Analysts believe, Cisco Systems Inc is on tenterhooks that the Skype deal is a serious challenger to its video conferencing systems. 

Cisco is reportedly arguing that Microsoft must guarantee open standards for video conferencing, similar to what exists for mobile phone calls. Such standards would eventually permit users of Cisco video phones to make calls to other users of Skype and other services like Google Voice. 

However, how these biggies will tackle the situation further is yet to see. Till then, stay tuned.

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