Is it enough?
AskAsa
5/16/2011 2:39:12 PM
To me, the issue is whether Microsoft can not only integrate Skype but also gain some of the cachet the phone service provides. Microsoft struggles to be as cool as Apple. Could this give them an edge with users who feel the firm is just too stuffy to understand their needs? Or will the users just turn to a new alternative?
Re: Look at it another way
Phoenix
5/15/2011 3:07:43 AM
You are right creating their own communications platform might have been cheaper. But then again it would have taken them over 5 years to get there. May be they thought time is money. And with the technological changes that take place every day they might have been tempted to get what was already made rather than developing it themselves so that they can have the latest in technology along with the customer base.
Look at it another way
tokyogai
5/12/2011 4:05:26 PM
Instead of arguing what price Skype should fetch, maybe we can look at this another way. let's say Mr. Balmer would give you a budget to hire 1000 people ( many more than Skype has) and pay them an average of $200K/yr , so you can insure you will get really good people. You then get an operating budget of say 3 times that- $600M/yr. Your charter is to build a mulit-platform telecom product that is easy to use and largely free to users. You spend time to make it great quality, easy to use on any platform, you integaret as a plug in to gmail, Yahoo, Outlook, Blackberry, etc. You have 5 years to get as many users as Skype. Then you give another $1 Billion or so for any licensing you need to do. In the time period you will spend 1/2 of what MS paid for Skype and IF you hired a few of the right people you would meet or exceed the goal.This apporach makes a lot more sense to me than what was done.
is what Microsoft is trying to achieve by purchasing Skype. The popularity of it is immense, and I perceive that it will only get bigger. Good Job Mr. Gates!
Don't forget that MSFT often has a deeper strategy than just revenue. Remember when they tried to get all the book stores (e.g. Borders, etc.) to use a single login password service for the convenience of customers? That meant that MSFT would then have all those customer lists! Imagine what they could have done with those.
Re: Paid too much
tokyogai
5/12/2011 9:32:32 AM
Howwill they make money if they don't charge? Will they continue to support all the platforms besides Windows mobile? I can't imagine that they will not try to give themselves some sort fo advantage and that will kill the goose in my opinion. I just do not see many ways they can ever make money without seriously hurting the business.
Re: Paid too much
Phoenix
5/12/2011 8:24:54 AM
I sincerely hope that will not be the case. If they start charging they would loose most of the customers who have been using skype to other competitive services. I also think they might start putting advertisements after all what they spent was a hefty sum.
I feel that the skype call quality has really gone down during the past one and a half years. I hope it does not further deteriorate.
Paid too much
PAW
5/12/2011 1:26:59 AM
It's probably a good move for Microsoft but at 8.5 billion, I think they paid too much and so will have to charge for the service.
Re: so much for Skype
Value Hiker
5/11/2011 11:57:37 PM
As a paid Skype customer, I can testify that Skype WAS a great service, but the call quality has been degraded consistently after being acquired by private equity firm 18 months ago.
We all know what a private equity firm will do with the new acquired company, loading it with debt, cutting off the fat, and milking the company as hard as it can. Finally I guess it cuts into the muscle and bone of Skype.
Hope Microsoft will not add another layer of bureaucracy on Skype, otherwise, we shall expect the beginning of an end.
I will take these analysts' report as a grain of salt. The trend was already set for smartphone, two platforms are too many for most software developer, and another platform, noooo way.
In the past Microsoft usually killed the competition by offering second rate product with lower price, or sometime free. But with Apple's firm grasp on high end user, and Android's spread from top to low tiers. There are really not much space left for Windows Phone. Especially considering Nokia needs one more year to come out with any meaningful window phone.
I would bet the Window Phone will end up like Zune, especially when Balmer remains to be the CEO
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