Recently Microsoft closed the deal on the Skype…

Recently Microsoft closed the deal on the Skype purchase. This was quite a shock for most people because it is not everyday a huge company like Microsoft buys a new provision with 8.5 billion dollars. Many analysts think that Microsoft overpaid Skype due to the fact that other companies like Facebook, Google and so on were prepared to pay 2.5 times less for it. There a lot of ups and downs to this purchase, in this essay I will try to cover the biggest ones.

The biggest obstacle or problem that Microsoft is going to have is with the carrier providers. This is due to the fact that Microsoft wants to integrate Skype into all phones supporting the Windows mobile platform. Since Skype is used to make free calls over the internet or low-cost telephone calls then Carriers see this as a possible threat to their revenues. But then again the integration of Skype with Nokia could lead to extremely beneficial results. If both of them agree on a suitable price for the services for both the supplier and the user then they will stand out as two major winners. Of course with all the other carrier companies it is all a matter of negotiation. Bill Gates also said that they have no intention of jeopardizing relations with mobile companies.

Microsoft actually bought this company because it did not want it to wind up in the clutches of its competitors. Better to own it for themselves. If to look at this topic from this angle then it would seem to be a completely worthless purchase because Microsoft has similar products like Lync and Windows Live Messenger. But actually Skype gives them another vital aspect which is the profitable telephone service. This is the main element that makes Skype stand out of Microsoft’s products. On the other hand Microsoft could have made the same technology work for them at a far lower cost but this is where the competition comes in. It is always necessary to think only about yourself if a company wants to survive.

Another bug issue for Microsoft is that with buying Skype all of the problems come along with it. Before the applying of improvement s can begin the old problems need to be fixed. At the moment the biggest problems are first of all interface annoyances. This meaning that there are very many scammers on the network who drive regular users mad with the constant friendship requests. So the privacy or security settings have to be overlooked. Secondly the competition nowadays is quite fierce. A while back Skype had the advantage to outshine everyone with its calling and video-conferencing capabilities but not anymore. Now Google’s Talk, ooVoo and others have the same technology and are striving to beat Skype. Luckily Microsoft is a Facebook investor so this also gives a good opportunity for the integration of Skype into Facebook and for it to excel some more. Thirdly Skype is full of spam which is mostly presented in ads. It is almost impossible to get rid of those and usually a serious headache for most users.

All in all it is difficult to say whether the Skype deal was a good one or not. It is certain that this new purchase has potential for greatness but also requires a lot of work for it to succeed. Only time will tell whether it climbs to the top or comes crashing down.

http://www.guardian.co.uk/technology/2011/may/10/microsoft-skype-deal-shocks-analysts
http://timesofindia.indiatimes.com/tech/itslideshow/8241677.cms
http://www.wired.com/epicenter/2011/05/microsoft-buys-skype-2/
http://techcrunch.com/2011/05/10/microsoft-acquires-skype/
http://www.zdnet.com/blog/btl/how-microsoft-skype-nokia-can-rule-cut-out-obscene-data-roaming-rates-abroad/48983?tag=content;search-results-rivers