Extracting the hype from the Skype deal

The news that Microsoft had paid $8.5 billion for Skype generated a mixture of awe and puzzlement from industry experts. The initial reaction was best summed up in the Guardian with the simple question as to why “Microsoft paid $8.5bn for a business that has changed hands so many times, never made money, and comes with substantial debt?”

On reflection it appears that Microsoft may have made a strategic call. In one fell swoop it has swept up a market leader in a field in which Microsoft lacked visible expertise. By integrating Skype within its platforms the software giant would take a further step towards a fully integrated business offering.

Skype is an internet service which allows users to chat face to face for free with other Skype users around the world and to chat with landline users for a reduced fee. Apart from the addition of face to face viewing it is little different from a number of VoIP packages, including the ones offered by Callagenix.

VoIP has been hailed as the future of business as it enables cost effective conference calls and opens up communication lines worldwide. This allows businesses to cut down on travel costs whilst at the same time gaining a greater understanding of requirements through the ease of cheap or free conversation. Coupled with features such as local telephone codes and virtual switchboards, business can act globally from anywhere in the world.

With 170 million users worldwide communicating for 209 billion minutes in 2010, Skype does come with a ready audience and it is easy to see the potential in encouraging this audience to use Microsoft products. Many commentators have speculated on the potential to be gained from targeting Skype at business users including whether this may tempt back some consumers from Apple.

However, users of existing Microsoft products are used to spreading their custom around with accounting, back up and storage programmes being just a few of the non-Microsoft products in common use. Those businesses looking for VoIP telephony services are just as likely to shop around for the best overall package. This is especially true of those businesses looking for not just a VoIP line but an integrated telephone service which includes features such as premium rate lines, disaster recovery, international presence, virtual switchboards or virtual assistance. Whilst we will watch the progress of the Microsoft/Skype integration with interest, our priority will be to carry on providing business with integrated VoIP packages coupled with service excellence for an all round telephony solution.