Microsoft Buys Skype: Is Free Calling Services in Danger?

Big News today in the Internet World! Microsoft has reportedly bought Skype for $8.5 Billion. This is the biggest deal in Microsoft’s history.

Why is this important?

Microsoft is trying to making its mark in the smartphone and communications market. By incorporating Skype into their products they can really make it a household name.

They have already stated that they plan to integrate Skype with the Xbox console, Outlook, and all windows smartphones.

Why I Worry?

The free-calling services are one of the best features of Skype and Microsoft seems to be anti-free. So I wonder what the future of Skype will be once incorporated into everything. Maybe it will be free on Outlook but part of paid services on Xbox? Who knows!

Skype is 170 million strong – its users spent 207 billion minutes on voice and video calls last year. However, because of the free calling services I just spoke of they did lose $7 million in revenue.

Do you think this will help Microsoft catch up to Google? Are you happy with the Buy?

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3 Responses to Microsoft Buys Skype: Is Free Calling Services in Danger?

  1. Very simple, if Microsoft attempts to finish Skype free subscription, gradually Google Talk and other services will become more successful and preferred by customers. Since Microsoft has no expertise in internetworking, it is easy for them to sell Skype as a business tool. That is fine, but even if business adopt that, how would they make money? They likely will bundle it in Windows Servers and allow people to Skype directly from Outlook clients. Then at that point, the only thing they could accomplish and continue to sell their Windows licenses.

  2. The world should be way better without MS. Microsoft has lot of cash available from the old days, a bunch of obsolete employees. The only thing they know how to do is to buy companies in order to tie customers to their install base. That is it.

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