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Microsoft buys Skype


Forum Editor

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Microsoft has confirmed that it has agreed to buy internet phone service Skype.

for a reported £5.2 billion.

Guess what you'll find bundled with Windows 8 when it comes over the hill?

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Forum Editor

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What's the business model?

Well at the moment it seems to be to make no money. Skype generates revenue by selling metered telephony, and to do that it uses the free VoIP as an attractor. If the business is to make real money it needs to find ways to generate income from other sources, and the obvious targets are online sellers. Ways must be developed to get users to interact with people who want to sell them goods or services.

Why is the business worth £5.2 billion? Primarily because the software has been downloaded about 1.8 billion times, and there are currently around 30 million users online at any given moment. That's a lot of potential customers as far as online sellers are concerned and Microsoft wants to go to work with that kind of a captive audience.

As far as I'm aware, Skype will run as a separate brand within the Microsoft citadel, but we all know it isn't going to be permitted to just sit there leaking funds all over the corporate floor - Steve Ballmer is worth $14 billion, and owns 4% of Microsoft; he didn't get where he is by tolerating loss-making businesses.

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onthelimit1

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Skype for free webcamming is brilliant. Wonder for how much longer it will be free , though!

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Forum Editor

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Inevitably

Microsoft is going to pay close attention to the difficult question of how to make Skype into a profitable operation. It's why Tony Bates - Skype's Chief executive - is going to be reporting directly to Steve Ballmer.

Expect to see Skype embedded in Windows phones, Windows tablets, and everything Windows in the future. Microsoft has paid big money for potential, and that potential has to be realised, as quickly as possible.

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morddwyd

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The trouble with MS is that it seems to have lost its innovative edge.

For too long it has sat on its massive success with Windows, doing little else but continually updating it, and its associated programmes.

Google on the other hand has kept on the move, from a simple search engine to a browser to a phone o/s and so on.

Many of us will remember when MS decided not to do much with IE because it didn't think the internet was a market worth pursuing!

They've been playing catch up, not too successfully, ever since.

Yes, they are still massive of course, but they now have nothing like the market dominance they used to have.

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Terry Brown

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As I see it, the main downside of Skype is you need to have your computer running all the time, this may be fine for fixed machines, however if you have a laptop and you are moving from place to placce (as is normal) how are you going to use Skype, without constantly re-charging the battery and allowing for the extra time the computer will be on, the wear & tear (never mind the cost of Electricity)on the computer system.

Terry

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morddwyd

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Yes, well the main downside of a landline is having to be at home all the time.

You pays your money and you makes your choice.

Whatever is best for your particular circumstances at a particular time, landline, mobile or VOIP.

I use all three (and VOIP over mobile) regularly.

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wee eddie

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The real skill in Management is not growing a new Operation (Google), it is making a Mature Business (Microsoft) survive.

In Magazine terms.

When PCA started it was the new kid on the block, they had the pick of the available Staff, with lots of fresh ideas. Lots of hard work with a large enthusiastic team.

Now 10 years down the line, it is many times more difficult to make fresh ideas, after all, you used your best ones at the start. It's loads of hard work, you've cut the size of the Team and they're trying not to regurgitate Items that they must run, but not in the same way as they did the year before last.

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Kevscar1

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morddwyd The trouble with MS is that it seems to have lost its innovative edge.

Oh what about X-box and it's development, and they have their own games studio now.

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morddwyd

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Kevscar

X box is hardly in innovation and many millions don't use it.

It is simply Microsoft's take on the games system.

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Condom

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wee eddie I agree with what you say. I remember moving to PCA many moons ago from other PC Mags and it really was a breath of fresh air with a young dynamic editor (Polish sounding name I think)and the Mag was great with lots of interesting articles and projects. I was so sorry when he left to go to a mag which I considered to ba half as good but perhaps he wanted the challenge and no doubt there was some money involved. I feel that PCA has slowly gone downhill since then and I have recently moved to Computer Active which has the feel of the young PCA.

I have stuck with this forum but even here I have seen a gradual decline in the numbers of people posting and the quality of the debates, despite the very best efforts of our great FE. I am not a professional publisher so who knows how to get things back on track again or perhaps this is just a malaise of the publishing industry in general. Perhaps it is now time to duck!!!

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