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Skype making all the right business moves | ZDNet

October 6, 2010

Skype making all the right business moves | ZDNet.

Skype wants a piece of the billion dollar Unified Communication’s pie. As the battle of the desktop continues Cisco the Unified Communication leader looks into the eyes of it’s former Collaboration GM Tony Bates.

In the land of opportunity Skype’s hire of Tony Bates in concert with a partnership Avaya advances their value proposition.   Perceived disadvantages; does Bates fully know what he is walking into? Does Skype have enough resources ie: budget & time to enable their ability to provide the security and scalability required to compete at an enterprise level.  With a stated initial focus on small businesses translates to it has A LOT of work to do.

Many things left to be determined.

Skype is a peer-to-peer VoIP client developed by Joltid (KaZaa team) in 2003, previously owned by a division of eBay. After a long dispute with Joltid which owned the peer –peer communication technology owned by Skype, and two years on the market for sale, Skype was sold to an investment group in November of 2009. Generates revenue through calls made to and from landlines and mobiles, voicemail, call forwarding, SMS, and most recently through Skype Credits.


  • Huge user community to leverage
  • Free to fee model helps with adoption
  • Partnerships will get them closer to where they need to be compete

Technological Challenges:

  • The Free Software Foundation (FSF) is concerned by user privacy issues arising from using proprietary software and protocols and has made replacement for Skype one of their high priority projects.
  • If provided by enterprise to employees the service can be used for activities not permitted as per company policy or legal guidelines due to its unmanageable nature
  • Skype is not yet compliant with the act for wire-tapping and has, so far, stated that it does not plan to comply.
  • Poor customer support – Lack of end-to-end service quality.

Is this another opportunity to pad pockets creating a new shiny object or do they have the chops to pull it off?

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