VCCircle reports that Salesforce.com is close to acquiring India based web conferencing vendor Dimdim. Salesforce.com and Dimdim both declined to comment. Web conferencing would fit nicely into Chatter, Salesforce.com's enterprise social networking platform. VCCircle reports that Salesforce.com staff are already moving into Dimdim's development centre in Hyderabad "for due diligence."

Earlier today, Cisco - the owner of popular web conferencing platform WebEx - announced its first entry into social CRM, which will bring the company into competition with Salesforce.com. Both Salesforce.com and Cisco announced enterprise social networking products last summer. Last year, Salesforce.com poached Cisco's collaboration guru.

The web conferencing space has been heating up recently. Nefsis recently launched a free version of its web conferencing solution and Adobe just released a new version of its analyst favorite web conferencing product Adobe Connect. Skype, which includes desktop sharing features, can be seen as a competitor in this space as well.

Dimdim, which just released version 6.0 of its product, offers both free and paid plans and features video conferencing between up to four participants, desktop sharing, and chat.

Dimdim was founded in 2007 by CEO DD Ganguly and CTO Prakash Khot. Ganguly previously founded Advanced Internet Management, which later sold to CA. Khot lead CA's RFID group. According to VCCircle, the company has raised $8.4 million from VCs such as Nexus Venture Partners, Index Ventures and Draper Richards.