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Skype and Microsoft: Microsoft trying to stay relavent or Skype dying out?

by Blogger on 05-10-2011 06:45 PM - last edited on 04-30-2012 12:23 PM by Moderator

5708101680_863db4db72_b.jpgYou might have heard today that Microsoft is buying Skype for a whopping $8.5 billion (hope it turns out better for them than (competitor))—from RWW 1 and 2—and pundits are, umm, pundit-ing about what this means. Will Microsoft kill off OS X, iOS, Andriod, and Linux versions (word is no)? Will Skype whither within the giant that is Microsoft like Groove Networks did (if you're wondering, Groove who, that's my point)? Lots of folks are posting alternatives to Skype (while that was one of the first things I thought of, I'm sticking with Skype cause I'm loyal that way), postulating the worst, which I can't very well blame them. So ... what do you think?

 

Really this is what's important. User groundswell can make or break a product (believe me I know this all too well), so if loyal Skype users (like yours truly who has been using it since early betas) start leaving in droves, Microsoft isn't going to have the vibrant user community that they are counting on. Skype has always had huge potential to go beyond just IM, VoIP, and video calls. There have been mis-steps with apps and expansions. The Mac v5 of Skype is probably one of the worst versions we've ever seen, but we're sticking with it...

 

As long as Microsoft doesn't blow it.

 

There is a lot of potential for Microsoft to blow it, but maybe Microsoft sees Skype (and rightly so) as somehting that could return it to real relavence as Windows, Office, and other solutions are getting pushed to the sidelines.

 

Or they might just still blow it.

 

Sky-net image from Chris Prillo.

Comments
by tachyondecay on 05-10-2011 08:53 PM

I think that Microsoft is disappointed with its performance in the mobile market and desperately searching for some kind of edge in this sphere. Purchasing Skype actually makes a lot of sense when viewed in the context of how Microsoft has been repositioning itself lately: it's trying to become more of a family-oriented, "one-company-fits-all" provider. By a Windows PC, have a Windows home network, sync all your stuff to the Windows Live Cloud, keep in touch with Windows Live mail and messenger. Adding Internet telephony is a logical step, but how to do that when Skype just dominates the market? Easy: buy out the competition!

 

Drawing from Tim Wu here, I also think Microsoft is finally adjusting to the fact that it no longer has anything resembling a monopoly. We've moved out of that phase of the cycle, thanks in part to the proliferation of mobile devices and their involvement in transforming the Internet ecosystem. Microsoft still has its old rivals like Apple, but it's now discovering entirely new rivals, and it's realizing it has to diversify.

 

I admit I'm a little confused when you say, "Skype has always had huge potential to go beyond just IM, VoIP, and video calls." Exactly what, in addition to those features, do you want to see from Skype?