Cohen and Haramaty developed and manufactured a PC sound card (SpeechBoard TM) that was sold mainly to the local market for various uses such as educational, advertising, radio broadcasting and to the visually-impaired community in Israel with a unique Text to Speech software enabling blind people to use a computer in Hebrew as well as English.

As Text to Speech was not available in Hebrew at all, and rarely available in English, they developed both from scratch, utilizing Haramaty's voice, and a user-update-able dictionary of words that was periodically merged between all users.

[16] In early 1993 the company partnered with ClassX, a group of innovative teenagers led by Ofer Shem-Tov (a childhood friend of Haramaty) to develop MS Windows audio drivers and related software.

The product was named Internet Phone but according to Wired magazine many people simply called it iPhone; and was the world's first VoIP software.

[2][18] The software was invented by Alon Cohen and Lior Haramaty, the two co-founders of VocalTec Ltd.[1][19][20] At the base of the Internet Phone was the invention of Alon Cohen and Lior Haramaty named the "Audio Transceiver", which managed the dynamic jitter buffer that was critical for achieving adaptive lower possible audio latency along with handling packet loss, packet re-ordering, and receiver transmitter sample rate adjustments.

1,750,00 shares were sold by the company and 750,000 were sold by selling shareholders including Elon Ganor, VocalTec's CEO and his brother in law, Ami Tal, through their holding of La Cresta International Trading Inc.[21] VocalTec's leadership who managed its successful IPO included:[22] Elon Ganor - chairman of the board and CEO, Ami Tal - Director and Chief Operating Officer, Alon Cohen - Director and Chief Technology Officer, Lior Haramaty - Director and Vice President Technical Marketing, Yahal Zilka - Chief Financial officer and Secretary, Daniel Nissan - Vice President Marketing, Ohad Finkelstein - Vice President International Sales, In 1997, Deltathree, an American company engaged in the business of voice over IP telephony services, launched an Internet-based international low cost calling service using VocalTec's VoIP technology, and VocalTec Internet Phone "PC to Phone" system.

[28] ITXC became the world's largest VoIP Carrier reaching a market cap of about $8 Billion as a Nasdaq company in 2000 (prior to the March 2000 Dot com crash).