Does Microsoft really needs Skype? (Buys It for 8.5 Billion)
So now its official Microsoft Buys out Skype for 8.5 Billion $ all cash deal (Source- Skype Official Blog ). The software giant subsequently beats Facebook and Google which were also considered as Potential Buyers for the same. Skype’s Sale was on cards as most of the investors were on the same note for it ( eBay and many more ). Microsoft is planning to Aggresively workÂ withÂ the Skype brand as to Compete with Cisco and other Global Â Communication Solution Providers.
But there are some questions which arise as MS decides to Buy a Consumer Based Internet Service company ( which have tremendous Challenges ) and which would be its LargestÂ acquisition till now !
1. Does Microsoft Really needs Skype ?
Now this one will be on minds of many, Microsoft already has Windows live for video calls and Lync for Business solutions, then why Skype ? Â Skype till now is successful in delivering excellent user experience and has a great Business model for enterprise Solutions. Microsoft instead of promoting their own product has decided to Work on a established VoIP service, like Skype. With Cisco and Google Voice emerging strong , Microsoft has to get ready for this segment.
2. What Microsoft Gets ?
-Skype’s Popularity and User base (currently over 500 million users )
-A well established Revenue Model !
-Grand entry into VoIP Business
-Experienced Employees in the business ( hope they stay, Twitter was Buzzing with Negatives )
-Working Business relationship with carriers, Skype Voice for Enterprise, andÂ SuccessfulÂ must have service for users.
- Direct integration with Windows 7 OS ( Most important for Mobile OS )
3. How they Stand in Market now ?
Skype was going public with an IPO which was Â expected to do about a Billion in revenues and termed Profitable , if Everything goes Well after Microsoft fully acquires Skype it will be a profitable gain for MS, only if they do not screw it up. (MS is famous for that ).
4. Any Impact of this deal to Facebook, Google or Apple ?
Yes, Facebook will be happy that MS has made it possible to keep Skype away from Google, as Facebook is working onÂ big timeÂ Integration of SkypeÂ servicesÂ with Facebook chat and messaging service.
( Microsoft is a Investor in Facebook, So access to Skype Infrastructure will be easy for FB ).
Probably Google was not much serious about this deal, they would rather integrate simmilar functionalities with Google talk and Google Voice and market it ! ( Thats what Google Believes in)
Apple Facetime, is still new and Developing and can face challenges Directly.
From years Microsoft has been a great company, excluding some hazardous buys ( Screwing startups like danger Inc. ,creating a failure Like Vista, trying to buy yahoo inc. at 48 billion $ ( Currently Yahoo only values half of it ). Hence theres a Doubt in every persons Mind which some or the way connects with thisÂ SiliconÂ Valley Giant. Hope they do justice to Skype
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