Skype: Has Microsoft's $8.5B Spending Paid Off Yet? Can It Ever?
mspohr writes "The Guardian has an article by Charles Arthur who predicted over two years ago that Microsoft's purchase of Skype for $8.5 billion was 'a gamble unlikely to pay off.' Arthur has penned a followup providing a fairly detailed analysis of his original criticism (he was wrong about some parts), an update on Skype performance, and a conclusion that it's not as bad as some of the other acquisitions. 'Skype, the company points out, now connects directly into Office 365, Xbox, Windows 8, Bing, Microsoft Messenger, Windows Phone and Lync, its business-oriented VOIP solution, and soon into Outlook.com for everyone. ... Certainly, integration of Skype into all those offerings is what the purchase should have been about. And it does look as though Microsoft has pulled it off. ... But has it pulled off $8.5B worth of integration?'"
Next story. Can we get some "real" news please?
Having our own dedicated TeamSpeak server our gaming group rarely uses Skype anymore. The quality of Skype is noticeably better but _dynamic_ "conference" calls are a pain to setup with Skype. Microsoft is not making a dime off us and probably never will. We'll probably switch to an open source Skype replacement at some point in a year or two.
I don't know how the hell Microsoft "justified" the billions it paid for Skype. You can't "buy" popularity as much as Microsoft would like.
Seems like the larger question here isn't whether or not Skype will pay off, but how much it costs to aquire a well known company vs. build a competing product in house.
While Microsoft was busy loading up suitcases with cash, Google churned out Google Talk / Hangouts. Did that cost $8.5 billion to build and market?
There's no -1 for "I don't get it."
...And it does look as though Microsoft has pulled it off. ... But has it pulled off $8.5B worth of integration?'"
Well, if anyone uses Outlook or Skype to communicate, then yes. Yes, MS has "pulled off $8.5B worth of integration" for the NSA.
Skype is confirmed to be back-doored. And, with its brilliantly obfuscated code, would reasonably be expected to have a few more.
All of those are incredibly valuable. The CIA alone spends $11.5 billion on Data Collection Expenses each year. And of all organizations, Skype is one of the most able to provide information to them - whatever your PC's microphone's hearing now - whatever non-skype-related files Skype keeps accessing even though it has no need to - etc.
It should be obvious that the money didn't come from Microsoft. It came from the NSA.
They wanted to wiretap all Skype conversations. They got Microsoft to buy it for that end.
You'd be nuts in the post Snowdon world to assume anything else.
All programs expand until they can read mail.
Most moves in Chess are devoted to preventing an opponent from developing a new line of attack, and may have a cost of diminishing your own lines of attack. purchasing skype was a hedge against being caught in a position where google voice was the killer application for cloud based project management and microsoft had no response. If google could see that microsoft would be caught flat footed they could have pushed google voice harder. But now that they see that at best that line of attack is a draw they aren't pushing it. SO it's the line of attack Microsoft prevented that you don't see.
Some drink at the fountain of knowledge. Others just gargle.
All in all, Microsoft has turned Skype into what they want it to be now, and unlike the other emBalments, this one turned out well. Kudos.
I'm pretty happy with it. It has a working Linux client I use daily for voice calls and instant messages. Call termination in the US is $0.023/minute pay-as-you-go with Skype credit and quality is excellent. You can configure your account with a mobile phone number so the call appears to come from you. I've found this to be essential; people frequently don't answer unknown callers.
Google Talk/Voice doesn't even have a standalone Linux client, open, closed or otherwise. There is a browser plugin.... I need another browser plugin like a I need a subpoena. Google Voice will sell you a number for incoming and caller id, but it won't spoof your mobile number like Skype, so people associate the "wrong" number with you and no amount of telling them ever fixes it. My entirely portable mobile number is THE number for me, has been for 20 years and will be till I'm dead, not some Google proprietary VOIP thing.
Google's stuff just doesn't measure up.
Who here remembers those OFFICIAL microsoft chat servers from back in 1998 or so?
I think 6 months after I discovered them, most or all of netmeeting servers were taken offline. I haven't touched that project ever since.
Today I noticed that with the huge heavyhanded April push sunsetting MSN messenger in favor of Skype, skype has been updated repeatedly and I've been declining without seeing what they're taking out.
I had to help someone test the software on their own computer today. Their updated "Call" button is now "Call PHONE" (implies cash expenses.) I won't be putting up with GUI changes meant to force me into paying.
MS also chose to fail to migrate the Hotmail new email and single-sign-on integration that its userbase loved. They were clearly aiming at forcing more Skype chatting, more potential paid calling and less email usage.