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Skype & Microsoft

By May 24, 2011September 2nd, 2020Blog, Hot Technology Topics, Microsoft

Skype & Microsoft

So Microsoft spent 8.5 billion dollars to buy Skype.  What could this mean for Skype and its users?  Microsoft already has a solid VoIP offering in Lync. Skype is available on multi-platforms, which isn’t something Microsoft has always been a fan of.  A lot of comments coming out from the public since the purchase is that Microsoft will eventually restrict the use of the product on other platforms.   I think this is misconception and needless fear.  Microsoft has begun to wake-up and realize that it is not the only game in town (a few years later than it should have).  With the phenomenal success of Apple, the growth of Android combined with that fact that Apple and IBM are now worth more as companies, Microsoft is beginning to stretch its applications beyond the Windows’ platform.   A great example is the coming release this year of the Lync client for iPhone/iPad and most likely Android devices.  These clients may actually be released before the client for Windows Phone 7. 

For the Skype fans of the world, I would not be concerned, but actually be excited.  Microsoft paid a premium for Skype.  In some ways they paid a premium to keep it away from Google and Facebook.   The worst case is that they will keep it the way it is.  But the most likely solution is that they will take the best of Skype and the best of Lync and make an even better product that is even more platform independent than it is today.  Making bold moves like this is easy for Microsoft, they have the cash.  But to continue to keep the cash coming in, expand the company and the grow the profits of shareholders, Microsoft won’t sit on this purchase but will make it better.

-Pete Cavanaugh, PEI

One Comment

  • ……Microsoft has confirmed it is making its most expensive purchase ever buying popular internet phone service Skype for US8.5 billion 7.87 billion …Skype allows users to make free or cheap web-based voice and video calls. About 170 million people log on to the service each month…If approved by US regulators the deal would give Microsoft a big web brand in internet communications which would be in competition with rival Google…Microsoft CEO Steve Ballmer is promising to continue to support Skype on non-Microsoft platforms…The purchase could also be a way for Microsoft to shed some of its business software image and gain momentum in a hot smartphone market at a time when internet lifestyles are going mobile…Some US analysts however believe Microsoft has paid too much…Skype recorded a net loss last year with analysts saying users like it because most of its services are free…But Mr Ballmer has defended Microsofts most expensive acquisition saying it is a great deal and he is excited about the advertising potential… Skype is a phenomenal service that is loved by millions of people around the world he said… Together we will create the future of real-time communications so people can easily stay connected to family friends clients and colleagues anywhere in the world… The premise is we do a great job of supporting non-Microsoft devices but optimise as much as we can for Windows phones PCs and we connect the customer bases. ..Microsoft says Skype will become a new business division within Microsoft with Skype CEO Tony Bates assuming the title of president of the Microsoft Skype Division reporting directly to Mr Ballmer…Microsofts biggest acquisition until now had been its 2007 buy of digital marketing firm aQuantive for 6.3 billion…Skype had also reportedly attracted interest from Cisco Facebook and Google…Microsoft and Skype say the deal has been approved by the boards of directors of both the Redmond Washington-based Microsoft and the Luxembourg-based Skype which is owned by investor group Silver Lake…Skype was founded in 2003 and acquired by online auction giant eBay in September 2005…It was sold to the investment group led by Silver Lake in November 2009 in a deal that valued the company at 2.75 billion…Skype logged more than 207 billion minutes of voice and video conversations in 2010…- ABC AFP….Tags ..

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