On the 10th of May it was announced that Microsoft had agreed a deal to acquire Skype for US$8.5 billion. Since then there has been much industry chatter about ‘why’ and ‘what’ this means for the industry. For me the only question mark is over how much they paid.
Microsoft has been moving into telephony for a number of years now. It was a natural progression for its business offering to include telephony, voice and video, in the evolution of work-based collaboration and in fact voice and video have been available as part of MSN Messenger for many years. This highlights an area of synergy between Microsoft and Skype; Microsoft, with MSN Messenger, allowed people to communicate over the Internet for free, exactly the area of the market that has proved to be so successful for Skype.
So, why Skype? Well, Skype is the world’s only truly global telephony service provider. It can offer it’s users connectivity to the PSTN, allowing calls to any phone/mobile phone in the world whilst offering the new generation services such as instant messaging, presence and video calls, to its on-net customers. When you start to look at the services Skype can offer it’s customers - yes some are free, but many do have a cost associated with them - then you start to appreciate how Microsoft can exploit this with it’s own products and not just for the home user but for business as well.