Microsoft Acquiring Skype
Continuing the concept started last week with Friday being a week in technology happenings and observations, I am kicking off today with the big news that Skype will be acquired by Microsoft. The deal was announced this week, after you will recall just last week Facebook and Google were both considered suitors in the case of Skype but there was no mention of the Microsoft. The deal is worth some 8.5 billion, yes, with a ‘b’ – making it the largest acquisition which Microsoft has done. Â Just to clarify for those unsure, Skype is a voice over internet protocol (VOIP) that allows phone conversation to occur between any two internet connected devices. Â It offers much more though, including conference and connections to and from regular phones, not to mention the typical long distance savings when using VOIP. Â Lots of questions remain and there is much speculation about the deal.
Speculation is ranging from is this deal so that Microsoft, which has had limited success in the video and video conference can really get into that market or if it this is more an in road into the large client base of mostly home users that has waned some for Microsoft in the last few years? There are some, who like myself, are speculating that it as much a defensive move as anything, in order to keep the very popular and much used Skype communication models out of the hands of fierce competition like Facebook and especially Google.
What remains to be seen is just how and where we can expect changes, which we know will come with Microsoft. For instance, we know that currently only a small percentage of registered and using Skype users actually pay anything for making calls, video or voice only, and certainly the instant text message options have no cost. In fact, the only real cost to consumers on Skype’s current model have to do with customers wanting more options, such as calling telephone numbers outside of the Skype network (or if you will real telephones) and allow inbound calls to a real number from those same phones to your Skype setup. Beyond that, a few may go for options like voice mail, call waiting services, and call routing – but those drop off even more.
One thing this do for Microsoft is put them on a lot systems that are not getting much play with Microsoft at current. All the tablets, especially Android and iPad, as well as most smart phones have Skype available as an app. In fact, using Skype you turning iPod, with no cell carrier, into a phone where you have a wireless connection available otherwise and clearly using Skype does not count against your calling plan minutes even on those devices that have that available.
Much to ponder out of this deal going forward and one to keep an eye on. Hopefully the rate structure for current single users will remain comparable and the push will be more toward business conferencing that will allow Microsoft to get the full return on investment, unless of course, it was just a big defensive block – in which case they have already achieved a LOT!
** – Image is the Skype logo and is trademarked to them.
