I cringed last night when I saw the rumor that Microsoft would be purchasing Skype. Now that it's out -- Microsoft CEO Steve Ballmer and Skype CEO Tony Bates took the stage at Google i/o today to announce the $8.5 billion deal -- it's time to dig in.
Here are five reasons this deal will be no good for Skype users inside and outside the enterprise.
1. Bad for privacy. Many Skype users don't know this, but Skype preserves a history of every text conversation. You know this if you have more than one computer running Skype. You have to run around clearing history on each one to delete just your history of the conversation on all devices. Skype urgently needs to fix this. The Microsoft purchase will put that on the back burner. Skype for enterprise is a no-go now and will continue to be so, despite Microsoft's Communicator and Lync. It's just too insecure.
2. Bad for call quality. If you didn't care that Skype servers (or your company's) were saving your skype conversations, you probably loved Skype for its quick service and ability to host so many users. Skype, at last count, reported 170 million monthly customers. Microsoft, by integrating Skype into Xbox Live, Windows mobile and Bing, will add far more people to the service. Also, Microsoft has a big investment in Facebook, so expect to see Skype there, too. I see Skype very quickly turning into a miserable Twitter situation, with the system constantly freezing up due to traffic. This might be Microsoft's biggest acquisition ever, but that doesn't mean Microsoft is agile enough to deal with the inevitable traffic problems that will come from adding so many more people to Skype.
3. Bad for investors. The Skype IPO, as planned by its board members, would've rocketed. Skype, not yet profitable, has said it would do about a billion dollars in revenue this year. Looks like revenues have slowed if the company would sell out to Microsoft. Moreover, under a behemoth like Microsoft, Skype will improve its service more slowly and get sucked down into corporate sloth.
4. Bad for customers. Microsoft says it will keep the service free, but I don't believe it. Do you? Seriously? Also, see above.
5. Bad for the industry. Now begings the VoIP wars, where Microsoft, Google and Apple will all begin competing with different and differing standards for a slice of users, instead of at least collaborating on a set of standards that unite the market.
Microsoft is known for buying companies, keeping them around for awhile until all IP is transferred over, then killing them. I don't believe that will happen here. The Skype brand is too strong now for that.
But unless you're an investor in Skype, there's almost nothing good in the Microsoft purchase of Skype for you.
What do you think? Email me at gina@ginasmith.com and check out upcoming BYTE at www.BYTE.com.
Follow me on Twitter at @byte and @ginasmith888.
gs
Recent Comments