Skype Purchase by Microsoft Would Be Good for Users

As a regular Skype user for business and pleasure, I was excited to read about the discussions that Microsoft may buy Skype. Although I do have fears they would make it a for-pay only service, I see the power of the technology and how a company like Microsoft could integrate the technology into other products.

I also see it as a move by Microsoft to make a large investment in a company that will really broaden their business into telephony and as a service provider. Attempts they've made into hardware (Zune) have not been successful. It's also been competing against Google in the search engine world with Bing. One possibility would be to search for a business on Bing, then be given the option to call the business free via Skype. Skype has an enormous user base of over 660 million people each month, and Microsoft can immediately leverage that audience into its advertising platforms and campaigns, even with small added banner ads.

I feel Microsoft has the resources to connect Skype to more applications and thus integrate free calling into them. I also think this will position Microsoft to compete better with ever-growing competitor Apple, as it could give the company a huge edge with regards to owning a . In addition to calling, they could deliver content over the network and even offer Internet access through it.

Apple has been very successful with devices, but they do not own the networks on which those devices operate. They sell the phone, but you must use AT & T or Verizon to use it. They sell music via iTunes but record companies and artists own the music and Internet providers own the pipeline through which it's delivered.

Skype is an amazing service allowing high quality voice and video chat communication over an Internet connection. The software is reliable and free for users. That's the attractive part, calls or even video chat between two or more Skype users is free. The company also offers paid plans, allowing communication through Skype to traditional land-line and mobile phones around the world, at discounted rates.

For free, I am able to make phone calls to other Skype users (who also sign-up for free) with quality that usually far exceeds a mobile phone. We are part owners in some rental property in France and just yesterday had a 40 minute Skype conference call to discuss upcoming rentals and other business. I use my trusty five-year old Mac iBook laptop, with a built-in microphone and speakers, and the quality is perfect, so perfect you can hear papers rustling, people moving things around on their desk, far more clear than a normal phone call. We had a long conversation and none of us were thinking, hey this is costing $4 a minute, as we did in the past using traditional land-lines or mobile phones. It encourages more communication, which helps business grow and develop.

My son has an independent record company and uses Skype everyday . It has helped his business tremendously, taking away the barrier of cost to long international calls and discussions. While email is free and instant, there really is no substitute for direct communication and Skype allows that for free between Skype users, either by voice or voice and video.

The company has also boomed in popularity with the explosion in smartphones and their ability to use apps. Several models and systems of phones and tablets have access to a Skype app, allowing the user, via the Skype system, to make free calls, when the phone is connected via WiFi.

eBay bought Skype outright in 2005, but then never really took it to the next level and made it a mainstream brand, despite it's popularity. Two years later they sold 70% of the company to other investors. The company still operates on a loss, as they offer most services for free. One impressive fact that bodes well for the future, although the company only bills almost 9 million subscribers a month, over 660 million people use the free services. With the guidance of Microsoft, I feel the company will quickly figure out a way to monetize that enormous user base.


Source:
AP "Report: Microsoft near deal to buy Skype" from Yahoo Finance


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