Reuters and MSN talk IM

IMlogic has won a contract to make Reuters Instant Messaging technology interoperable with MSN's 100 million IM users.

The deal means Reuters' 50,000 business users will be able to communicate with MSNers and users of other consumer IM software in a safe and auditable fashion.

According to Art Gilliland, director of business development at IMlogic, it is the need for security and greater accountability in light of tightening standards in the US and Europe which is driving investment in IM.

"This deal is really the first step towards making consumer IM auditable and secure," said Gilliland. "Compliance is a big driver, as are standards and archiving, especially for companies in the financial services sector."

Reuters Instant Messenger is used by traders and a spate of accounting scandals in recent years has highlighted the need for people working in the sector to keep trails of all conversations and transactions.

As such, consumer IM was identified as a risk because it wasn't auditable and was seen as insecure. All the major IM providers are now addressing this issue with more announcements expected over coming weeks.

The Basel II and Sarbanes-Oxley process excellence and compliance issues and strict regulation from the FCC and SEC in the US mean companies are now having to invest in ensuring their IM meets ever tighter standards if they want to keep the ease and immediacy of the medium.