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May 10 2011

Microsoft Buying Skype

Numerous news agencies are reporting the pending purchase of Skype by Microsoft.

Here is one example…

What does this really mean? The underpinning technology for Skype works really well. It is clean and clear, has a low CPU impact and in general is a well thought out platform. Skype is free and Skype to Skype connections are free as well, so where is the money?

Skype sells credit to call out to normal phone numbers, they will rent you a Skype phone number and you can buy a package similar to a cell phone plan to allow you a fixed amount of credit per month.

I am unclear what Microsoft is really gaining for the purported 8.5 billion they are paying for Skype. The technology is good, but not groundbreaking. It does give Microsoft some much needed visibility on the web and a really cool press release.

Does Microsoft ownership change the public perception of Skype? I am afraid that it does, and I am not certain that they will continue to own these customers.

To me, this is overpayment of epic proportions unless they have a brilliant plan for application of the product/technology that I am COMPLETELY missing.

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