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Microsoft Buying Skype for $8.5B

Approximately one trillion readers wrote in to tell us that there is a big rumor that Microsoft is buying Skype. This follows an earlier rumor that the suitor was Facebook. Unsurprisingly many people are already wondering what it would mean for Linux users of the popular VoIP platform. Many major publications are running versions of the story.

16 of 605 comments (clear)

  1. Alternatives? by rlp · · Score: 3, Insightful

    So what's a good alternative to Skype that works cross-platform? I use Skype with Linux and Android connecting to Mac and Windows users. Is Jitsi a reasonable solution?

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    1. Re:Alternatives? by binarylarry · · Score: 5, Insightful

      Google Voice is pretty nice, gmail has an integrated client.

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    2. Re:Alternatives? by SimonTheSoundMan · · Score: 5, Informative

      Only available in the USA which doesn't make it a reasonable solution. :(

  2. Sounds like a big risk to me by Jugalator · · Score: 4, Interesting

    Microsoft already has the technology necessary in their own audio/video/text Windows Live Messenger platform. So I don't think it's about that. And yes, I feel sorry for the Skype staff today -- I don't think this move bodes well for them at all. Their competence may not be what Microsoft is looking for here.

    And as for other reasons, the paying customer base (compared to the non-paying WLM user base) of Skype could perhaps be attractive to Microsoft. Keep in mind that Skype is running with losses despite all these users, though.

    In the end, taking all these thoughts together, I can only imagine that this is a risky move by Microsoft. I think they are hoping for awesome synergy effects from some forthcoming integration with their products. I assume something big, and no minor idea, since it needs to pay these $8.5 billion and more.

    My first idea was integrating this with Windows Phone 7 (8? 9?) to get phone calls at data rates, but I have no idea how they'll going to get the providers to accept that. That would be a feat as grand as Steve Jobs getting the music companies to sign on to iTunes back in the days, if not greater.

    Otherwise... Hmm, someone mentioned Xbox or Kinect integration to communicate with others with these devices... Well that's a thought but why shouldn't they be able to just implement that feature with their Live network? Write a WLM client for these - done. No $8.5 billion wasted.

    Not sure if there are other ideas about where MS may be going with this?

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  3. Re:Question.... by Chrisq · · Score: 3, Informative

    Wow - all the Linux people spreading the FUD this time around. Ever stop to think that maybe, JUST MAYBE, MS is buying it for the tech, looking to expand on what's already there, being able to use their existing infrastructure to better the service, while adding it to the Xbox 360 (and future consoles), all the while, continuing development of all the versions already existing?

    Or are all you Linux fanbois just gonna dump Skype because it's owned by MS now, and you're leaving due to "principle" - i.e. being retarded?

    Just look at their past record. Maybe that strange guy in the park with the prison tattoos really has a puppy in his van.

  4. All about the mobile... by Junta · · Score: 5, Interesting

    Basically skype seems to have a *whole* lot of traction/brand recognition. MS wants to control that to prop up their struggling mobile phone play (read: screw over iOS/Android/etc users). Torpedoing Linux support will probably be just side-effect.

    My hope is that MS has the causative relationship reversed. Skype is ubiquitous because they endeavour to work on all devices. If Skype becomes an Xbox/Windows/Windows Phone play, I expect their subscriber base to evaporate.

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  5. Re:The future by cpu6502 · · Score: 3, Funny

    So negative. Don't you think Skype will continue providing a linux client program, just like they've always done?

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  6. What it means for Linux users... by perrin · · Score: 5, Informative

    According to the press release itself: "Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms." However, this is Microsoft, and we know how they operate. This is unlikely to be anything but a ploy to avoid objections from the authorities to the purchase. Once it is too late to stop it, I predict not a single update will go into the Linux and Android versions, and the Mac and iPhone versions will lag behind in features. So the question is what alternatives there are now.

    Another question is what Google, Facebook and Cisco will do now. If I were on the board of any of them, I'd certainly be pushing for pooling resources to create a joint venture to compete with Skype on all fronts. Could set up quite the consortium for the money they intended to spend buying Skype themselves.

    Interesting times.

  7. Re:The future by poetmatt · · Score: 4, Insightful

    Aaaand this is why you never go proprietary. They can stop an application in it's entirety without anyone being able to pick it up and continue the work.

  8. Re:Grants Ballmer by vlm · · Score: 3, Insightful

    How? It's not an antitrust case. MS doesn't have any presence in the VoIP arena (at least as far as I know.) There's not much to do about it.

    http://en.wikipedia.org/wiki/Tying_(commerce)

    "The basic idea is that consumers are harmed by being forced to buy an undesired good (the tied good) in order to purchase a good they actually want (the tying good), and so would prefer that the goods be sold separately"

    Basically, once skype is carefully accidentally closed to all but win7, and MS is the monopoly provider of win7, skype will be tied to it.

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  9. Re:Grants Ballmer by errandum · · Score: 5, Informative

    Even MSN has a mac client. So does Office.

    If Microsoft is trying to get into de VoiP business, they might as well keep aiming at the largest number of platforms possible.

    I do believe MS is not trying to get Skype per-se, but their architecture. The common mortal wouldn't know, but Skype has proprietary encryption that still has not been beaten (Russia even wanted to ban Skype), distributed supernodes that make their network really cheap to run (compared to other kinds of architectures) while still working flawlessly over cascading NAT's, for example and a really good VoiP codec (revolutionary, really, it was the first real contender for a PC phone).

    With buying skype they'd be getting a whole lot more than business.

  10. SIP by hey · · Score: 4, Insightful

    Wikipedia says:
    The Session Initiation Protocol (SIP) is an IETF-defined signaling protocol, widely used for controlling multimedia communication sessions such as voice and video calls over Internet Protocol (IP). The protocol can be used for creating, modifying and terminating two-party (unicast) or multiparty (multicast) sessions consisting of one or several media streams. The modification can involve changing addresses or ports, inviting more participants, and adding or deleting media streams. Other feasible application examples include video conferencing, streaming multimedia distribution, instant messaging, presence information, file transfer and online games.

    *That's* the alternative.

  11. Re:Grants Ballmer by Waffle+Iron · · Score: 4, Insightful

    There are dozens of decent VoIP apps out there

    But your grandma only has one one of them: Skype. Due to the network effect, Skype has an effective monopoly on free phone service. While the barrier to entry in this market is technically low, in the real world filled with real users it's probably insurmountable. It looks like Microsoft thinks that the barrier would take at least $8.5B to overcome; otherwise they'd go with their normal instinct to just copy other vendors' technologies.

    Grandma isn't going to want to unlearn Skype and learn how to use a sluggish Flash-based solution, either.

  12. Re:The future by Anonymous Coward · · Score: 3, Insightful

    They'd be fools to kill the Linux and Mac client development right off, even if that is their long term plan.

    You made a funny.

    Realistically though, MS has been pretty good about cross platform support on their non-core technologies lately.

    MS' cross-platform efforts are token. At best.

    and while the Silverlight client for Linux is clearly no one's top priority, it's getting regular updates.

    There is no silverlight client for Linux. Perhaps you were referring to moonlight. It is worthless. Virtually no content on the web will work with it. It is cross-platform in name only enough to keep the fanboys happy and the anti-trust hounds at bay.

    Unless you just have moral issues with using anything associated with MS, I tend to think it'll be fine.

    Yeah, because MS would never buy a product and then kill its Linux support. Right??

  13. Re:Grants Ballmer by localman57 · · Score: 5, Insightful

    There are dozens of decent VoIP apps out there

    Due to the network effect, Skype has an effective monopoly on free phone service. While the barrier to entry in this market is technically low, in the real world filled with real users it's probably insurmountable.

    Yeah. It's lilke MySpace. I sure wish something would come along to improve on MySpace. But hey, what ya gonna do? They're entrenched.

  14. Re:Grants Ballmer by Luckyo · · Score: 3, Insightful

    Problem lies in the fact that trying someone for "potential crime" opens a HUGE can of worms. Where do you plan to stop? Pre-emptive fines on speeders? Pre-emptive jail sentences for people with history of domestic violence going to a martial arts course?

    We have no punishments for thought crime, which is what you describe is about. They can think about crime all they want, but it's the ACT itself that's criminal. Not the thought. Even if precedence of such behaviour exists.

    What we do have is harsher punishment for REPEAT OFFENDERS. That is the main consequence of repeating the same crime twice.