Thursday 19 May 2011

How Microsoft’s acquisition of Skype could change the internet landscape

Microsoft has announced its acquisition of Skype under a definitive agreement wherein Microsoft will pay $ 8.5 billion in cash for the company. The agreement has been approved by the boards of directors of both Microsoft and Skype. Skype will presumably become a business division within Microsoft, and Skype CEO Tony Bates will assume the title of president of the Microsoft Skype Division, reporting directly to Ballmer, Microsoft’s website states. The report further announces:

Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.
At Pipon Solutions, we’ve been trying to figure out how the deal could affect the web world. Some of the key ways by which we think Microsoft will try to use Skype to its competitive advantage are:
  • ·         Integrating Skype into its enterprise products – voice, video, etc
  • ·         Integrating Skype into Bing and Bing mobile search
  • ·         Integrating Skype into Windows based phones for video chat and alternative voice calling over high speed networks
  • ·         Bundling Skype into Xbox/Kinect for video calling
  • ·         Giving special access to Facebook on Skype
  • ·         Integrating online advertising into Skype’s services
  • ·         With Skype, Microsoft will have a major say and could be the trendsetter in the video conferencing industry
  • ·         Microsoft also gets Skype CEO Tony Bates, who will come in handy in the communications wars
  • ·         Skype has lots of relationships with small and medium enterprises that will complement Microsoft’s wares
  • ·         An answer to Apple’s Facetime – Microsoft could bundle Skype with Windows to compete against Macs and Macbooks using Facetime
  • ·         Finally (and most importantly), Microsoft’s acquisition of Skype means Google won’t get it!

Got any more points to share with us? Your comments are welcome!

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