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View Poll Results: Will Skype under Microsoft benefit current users that enjoy no charge video calls?
Yes. Microsoft has the money, vision, commitment and technical support that Skpye needs 12 32.43%
No. They’ll ruin Skype like they ruined Hotmail. 17 45.95%
What’s Skype? 8 21.62%
Voters: 37. You may not vote on this poll

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Poll: Microsoft buying Skype - good or bad
Old 05-10-2011, 09:05 AM   #1
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Poll: Microsoft buying Skype - good or bad

We use Skype a lot. Video calls with our granddaughter, many family members that live overseas, friends. Now Microsoft is buying Skype. Will this have a positive or negative impact for frequent users like us?

Quote:
Microsoft said the deal will increase the accessibility of real-time video and voice communications across its products, while expanding Skype's reach. Skype will be available on Microsoft products like Xbox, Kinect, and Windows Phone, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live, and more.
Microsoft said it will continue to invest in and support Skype clients on non-Microsoft platforms.

"Skype is a phenomenal service that is loved by millions of people around the world," Microsoft CEO Steve Ballmer said in a statement. "Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."

When the deal is complete, Skype will be a new business division within Microsoft. Skype CEO Tony Bates will become president of the Microsoft Skype division, reporting to Ballmer.

"I believe this acquisition is the very best way to extend Skype's reach and will allow us to bring real-time video and voice communications to more people around the world than ever before," Bates said in a blog post. "The combination of Skype and Microsoft will directly benefit all of you who use Skype by ushering in a new era of generative ways for everyone to communicate."
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Old 05-10-2011, 09:20 AM   #2
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I do not believe it will be negative.

They will deploy it on everything!
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Old 05-10-2011, 09:37 AM   #3
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So, I work for MSFT and was surprised to see this news this AM. Overall, I think it could be a very good thing. This could help our collaborative products, integrate with Kinect/XBox 360, and be nice on Windows Phone.

I do have a few concerns though.
1) The company vastly overpaid for Skype
2) Our recent history of buying out companies has been kind of bad. Buying out a good Danger company, treating them like crap, and then putting out one of the most embarrassing products ever: Kin. Then we let them all go. This better not be a repeat.

Anyway, I'm glad to see that some sentiment (at least so far) is at least a bit positive, many people like to beat up on MSFT because of our rep as "boring" or the "Evil Empire".
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Old 05-10-2011, 09:40 AM   #4
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Also, I will not vote in the poll because I'm biased, but I'm very interested to see what the sentiment here is.
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Old 05-10-2011, 09:55 AM   #5
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In another couple of decades, there will be about seven businesses left on the face of the earth because the smaller companies have all been bought out.
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Old 05-10-2011, 10:17 AM   #6
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In another couple of decades, there will be about seven businesses left on the face of the earth because the smaller companies have all been bought out.
True, and no new ones will start.

Then the government can take over these few large companies, and we can all take the advice I have passing out for several years to join the winning team- El Gobierno!

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Old 05-10-2011, 10:52 AM   #7
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I'm very skeptical that MS will turn this into to something better for the average consumer. I suspect they will try to tie it to their phone OS and other OSs will be get short shrift.

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Originally Posted by studbucket View Post
So, I work for MSFT and was surprised to see this news this AM. Overall, I think it could be a very good thing. This could help our collaborative products, integrate with Kinect/XBox 360, and be nice on Windows Phone.
What is stopping them from bringing out Skype on a Windows phone now? It's on iPhone, iPad , iPod Touch, and Android phones, and they didn't buy the company.


Quote:
I do have a few concerns though.
1) The company vastly overpaid for Skype
Yes. So what does that say about the new owner?


Quote:
2) Our recent history of buying out companies has been kind of bad. Buying out a good Danger company, treating them like crap, and then putting out one of the most embarrassing products ever: Kin. Then we let them all go. This better not be a repeat.
You can hope it isn't a repeat, but I bet history is a better predictor. What has changed in the Microsoft corporate culture since Kin? Why should I have any realistic expectations that it will be different this time?

Quote:
Anyway, I'm glad to see that some sentiment (at least so far) is at least a bit positive, many people like to beat up on MSFT because of our rep as "boring" or the "Evil Empire".
I won't beat up on Microsoft for being 'boring' or an 'Evil Empire' (although I could - after all, you said the company has that 'rep' - must be a reason). I'll beat up on them for producing what I consider sub-standard products (and you apparently agree with your example of 'Kin'). A real shame considering the talent and power they have at their disposal. I would think they should be able to blow my socks off with 9 out of 10 product releases.

Here, for example - why shouldn't a company with all the experience and resources and financial strength that Microsoft has not be able to dominate this market? Take away their monopoly leverage, and they appear unable to compete:-

Microsoft’s U.S. smartphone market share dips despite Windows Phone 7 | WinRumors

Quote:
7th Feb 11 11:08 pm,

Microsoft’s market share of smartphone subscribers dipped in December despite the release of Windows Phone 7.

comScore unveiled their latest U.S. Mobile Subscriber Market Share figures on Monday and they’re not easy reading for the folks in Redmond. Microsoft’s total U.S. smartphone platform market share dropped by 1.5 percentage points in December to 8.4% from 9.9% in September last year. Microsoft’s main rivals, Apple and Google, both improved their market share. Google’s Android operating system soared by 7.3 percentage points from 21.4% in September to 28.7% in December. Apple now accounts for 25% of U.S. smartphones. RIM still tops the chart with 31.6% market share, down 5.7 percentage points.
More importantly, what other options are there to Skype for us? I like choice and competition, so I'd like to check out the competition. I am just sorry that I have $8.23 in my Skype account that now belongs to Microsoft

-ERD50
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Old 05-10-2011, 10:54 AM   #8
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I agree... overpaid for the company... I think they could have started from scratch and built a new one that would have been even better cheaper...


I am sure they will not get it working right... who wants to use their XBox for this Right now my wife tries to watch movies using the Xbox and it is a LONG process of connecting etc etc... and then there is no easy remote for it... and they it breaks the connection and you have to start over...

SOOO, I am sure they will do something like this to Skype... where it does not work.. (PS... we are a PAYING Skype user and like it)....
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Old 05-10-2011, 11:03 AM   #9
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Ooops, looks like a trend:

Report: Microsoft Lays Unsuccessful Zune to Rest | Gadget Lab | Wired.com

Quote:
Bloomberg is reporting that Microsoft will cease development of its family of Zune-branded music players due to weak demand and a desire to focus on its smartphone platform.
How long before Skype joins the graveyard?

-ERD50
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Old 05-10-2011, 11:49 AM   #10
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We use Skype to keep up with our new granddaughter who lives 200 miles away. Our son is a software engineer for Redhat and has always hated MS products. My guess is that he will shortly find us another software platform to use in place of Skype. So from that perspective this will be bad.
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Old 05-10-2011, 11:55 AM   #11
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Microsoft already has audio and video chat capabilities using windows messenger, dating back to XP. I'm not sure if there is any technology in Skype that MS doesn't already have. So, will they just merge messenger into Skype? Are they just rebranding their own service - for $8.5N?
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Old 05-10-2011, 11:57 AM   #12
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Microsoft already has audio and video chat capabilities using windows messenger, dating back to XP. I'm not sure if there is any technology in Skype that MS doesn't already have. So, will they just merge messenger into Skype? Are they just rebranding their own service - for $8.5N?

They are buying the large and entrenched user base!

They will broaden the user base by deploying it on everything they produce.... including business products!
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Old 05-10-2011, 12:03 PM   #13
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Originally Posted by ERD50 View Post
What is stopping them from bringing out Skype on a Windows phone now? It's on iPhone, iPad , iPod Touch, and Android phones, and they didn't buy the company.

Yes. So what does that say about the new owner?
I have no insight into the Windows Phone organization or the ideas behind purchasing Skype. I'd tell you more if I could.

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You can hope it isn't a repeat, but I bet history is a better predictor. What has changed in the Microsoft corporate culture since Kin? Why should I have any realistic expectations that it will be different this time?
Well, Microsoft is such a big company (90000 worldwide I think), that it's a bit of a broad brush to say that "corporate culture" is the same as Kin. Kin was a dead product that we apparently HAD to do for political reasons and shipped it despite no support from OEMs or WinPhone. I have no clue how it got to such a bad place, but most of the knuckleheads in charge at that time are gone or have demoted.

Kin was an absolute disaster, and Skype is a good product. If we manage to mess this up, even myself (a big optimist) will have to have some 2nd thoughts about this company.

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I won't beat up on Microsoft for being 'boring' or an 'Evil Empire' (although I could - after all, you said the company has that 'rep' - must be a reason). I'll beat up on them for producing what I consider sub-standard products (and you apparently agree with your example of 'Kin'). A real shame considering the talent and power they have at their disposal. I would think they should be able to blow my socks off with 9 out of 10 product releases.
You're right, we should be able to do that. However, aside from disasters like Kin, in what sense (in the last 5-6 years) has Microsoft not released quality products?

I think the 2 most recent Office Suites are very nice, Windows 7 is great, Microsoft Security Essentials and the Windows Live suite are great (and both free!) and the Server Business is booming.

I can understand the complaints about Vista (I didn't like it), but those were mostly UX problems (especially once you learn the technical details of Vista's issues).

I'd counter that MSFT's issues aren't quality, but rather the overall customer experience and the inability to respond to the market in a timely manner. (See, WinPhone 7, Tablets, etc)

Quote:
Originally Posted by ERD50 View Post
Here, for example - why shouldn't a company with all the experience and resources and financial strength that Microsoft has not be able to dominate this market? Take away their monopoly leverage, and they appear unable to compete:-

Microsoft’s U.S. smartphone market share dips despite Windows Phone 7 | WinRumors
Related to what I said above. WinPhone 7 is actually pretty awesome...it just came like 2-3 years too late. It's a business leadership issue, not a technological issue.

But you're right, not many excuses for why Microsoft has "stagnated" when it comes to innovation and consumer products.

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Originally Posted by Texas Proud View Post
I am sure they will not get it working right... who wants to use their XBox for this Right now my wife tries to watch movies using the Xbox and it is a LONG process of connecting etc etc... and then there is no easy remote for it... and they it breaks the connection and you have to start over...
It sounds like that's not really an XBox problem, but more of an internet connection/bandwidth issue. I watch HD Sports through ESPN 360 and movies on Netflix often, and play games online when I can. There's a small connection time, but it's not bad.

As far as the remote goes, the stock one isn't great, that's true

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Originally Posted by Texas Proud View Post
SOOO, I am sure they will do something like this to Skype... where it does not work.. (PS... we are a PAYING Skype user and like it)....
So, given the time it will take for
A) This acquisition to happen
B) Microsoft to come up with a business strategy
C) Overcome corporate inertia

Tells me that you shouldn't worry about any changes to your Skype for 1-2 years. Just a hunch. If I learn anything I can share, I'll post it here later.

Quote:
Originally Posted by ERD50 View Post
Ooops, looks like a trend:
Report: Microsoft Lays Unsuccessful Zune to Rest | Gadget Lab | Wired.com
How long before Skype joins the graveyard?
-ERD50
I think these are 2 completely different situations, and there's no trend to be found. Skype is going to be its own entire Division in Microsoft, as in the Skype CEO now reports to Ballmer. This puts Skype at a very importance place.

Zune was a product buried way down the chain:
Entertainment & Devices Division->Specialized Devices & Applications->Zune.

Zune v1 sucked IMO. Zune v2 was fine, but was 1-2 years behind the times in technology. Zune HD is/was an awesome product, but Microsoft was too late to the game, so it had no chance to succeed. The Zune software is pretty nice, but way too bloated and slow.

The best thing to come out of the Zune was the UI/UX that WinPhone 7 took.
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Old 05-10-2011, 02:41 PM   #14
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Originally Posted by studbucket View Post

It sounds like that's not really an XBox problem, but more of an internet connection/bandwidth issue. I watch HD Sports through ESPN 360 and movies on Netflix often, and play games online when I can. There's a small connection time, but it's not bad.

As far as the remote goes, the stock one isn't great, that's true



So, given the time it will take for
A) This acquisition to happen
B) Microsoft to come up with a business strategy
C) Overcome corporate inertia

Tells me that you shouldn't worry about any changes to your Skype for 1-2 years. Just a hunch. If I learn anything I can share, I'll post it here later.



Since you quoted me on my post I will respond....

My wife and kids are not watching Netflix or one of the other sites that are part of Xbox... they are watching an online video site that they play through windows media player... it is on her laptop and then goes to the Xbox... the connection to the media player is hit and miss... there are times when it connects with little trouble and other times it will not connect at all... even when we go through all the steps it tells us to do... and it is the Xbox that drops as the computer is still showing the movie when we look... I will solve this with another laptop and an HDMI cable...

As for Skype... you are right... nothing will probably change for up to two years... and heck, there is a possibility that it might get better with big buck behind it.... I would love to buy a Skype phone instead of using the computer.. but the costs now are way to high for me....
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Old 05-10-2011, 03:24 PM   #15
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My internet company here in France lets me call 80 countries worldwide, including the US, Canada, Australia, etc, for free, using an interface I know: either a regular cordless phone, or my mobile phone over WiFi using the SIP protocol. Skype is going to have to add a lot of features before I'm going to want to regularly connect to people using their way of working. It's occasionally nice to use video to talk to our kids at college, but we do that maybe once every couple of months because it requires them and us to sit still where there's a webcam (OK, we should have bought tablets by now, but there's that whole LBYM thing).

So I voted "no" because, even thought they are no more than a minor irritant these days and we're all meant to hate Apple and Google now, I still haven't forgiven Microsoft for ten or so years of "something has gone wrong, please contact your system administrator", as if your system administrator - that would be me - had the slightest freaking clue what the latest piece of carp from M$ had broken.
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Old 05-10-2011, 04:01 PM   #16
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Heard some interesting comments today on the business channel. One, Skype has only1% of its registrants that actually pay for the service. The rest are add supported. The talking heads pointed out that Microsoft has not been good at turning an add based business into a profitable business. I guess time will tell.
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Old 05-10-2011, 04:12 PM   #17
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Originally Posted by studbucket View Post
So, I work for MSFT and was surprised to see this news this AM. Overall, I think it could be a very good thing. This could help our collaborative products, integrate with Kinect/XBox 360, and be nice on Windows Phone.
I do have a few concerns though.
1) The company vastly overpaid for Skype
2) Our recent history of buying out companies has been kind of bad. Buying out a good Danger company, treating them like crap, and then putting out one of the most embarrassing products ever: Kin. Then we let them all go. This better not be a repeat.
Anyway, I'm glad to see that some sentiment (at least so far) is at least a bit positive, many people like to beat up on MSFT because of our rep as "boring" or the "Evil Empire".
If I was one of the thousands of investors who've been buying MSFT stock for its "bargain valuation", then I'd be mightily pissed off about this news. MSFT could've "integrated" and "been nice" with licensing fees and other "partnerships" without having to buy the whole hog. This smacks of executive ego, and I'm not referring to Skype's staff.

I'm not sure why MSFT believes that (despite seed money, angels, VCs, eBay, and private equity) they can actually turn Skype into a profit center. Somewhere Meg Whitman is laughing her assets off at Ballmer or Bill Gates, perhaps making a side bet with them. We remember what AOL did to Time-Warner. Maybe Skype is about to do it to MSFT.

If I saw MSFT treating acquired employees that way, I'd make sure my resume was perpetually buffed up and my ER plan perking along.

I can't wait to see what perspective Scott Berkun has on this news...
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Old 05-10-2011, 04:34 PM   #18
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If I was one of the thousands of investors who've been buying MSFT stock for its "bargain valuation", then I'd be mightily pissed off about this news. MSFT could've "integrated" and "been nice" with licensing fees and other "partnerships" without having to buy the whole hog. This smacks of executive ego, and I'm not referring to Skype's staff.

I'm not sure why MSFT believes that (despite seed money, angels, VCs, eBay, and private equity) they can actually turn Skype into a profit center. Somewhere Meg Whitman is laughing her assets off at Ballmer or Bill Gates, perhaps making a side bet with them. We remember what AOL did to Time-Warner. Maybe Skype is about to do it to MSFT.
Gah. This will likely turn out to be another complete waste of cash, like so many previous mergers. They'll fold in the company, and within a year or two, introduce everyone to Microsoft HR, sprinkle some partners on top, and apply whatever flavor of stack ranking they use for evaluations then to the new kids in town. Cue employees running for the exits...

I predict that this winds up just like Microsoft's previous takeovers and mergers. Someone will decide to tie it to Passport or Windows Live. Then it'll become part of the Windows 8 Phone feature list and honk off AT&T.

I've seen this particular evolution before. Howzat Danger Sidekick phone? Remember Massive, the in-game advertiser? Neither do I. How about LinkExchange? Oops, competed with MSN Search banner ads. Oh, WebTV! Yeah, um, we're gonna do XBox now. Bye, guys. Well, there's aQuantive ad software. At least Yahoo or Google didn't get it. Yeah, they just got the employees... Well, there were those investments in Korea Telecom, Comcast, and Titus, so they were sure to lock up the settop box market. Your settop box runs Windows Media Center, right? No? Um...
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Old 05-10-2011, 04:47 PM   #19
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I have nothing against Microsoft. However, I don't think this is good news for Skype users like me. I hope I'm wrong.
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Old 05-10-2011, 04:59 PM   #20
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One more idle thought. As Skype has been a non-US company, and distributed the software from outside the USA, they were able to offer strong encryption as a standard part of the package. This allowed Skype voice to be used as a secure communications channel.

As part of Microsoft, a US corporation, the rules change a bit. Microsoft Skype, being a Voice over IP service, will have to comply with the Communications Assistance to Law Enforcement Act (CALEA). The Act obliges telecommunications companies to make it possible for law enforcement agencies to tap any phone conversations carried out over its networks, as well as making call detail records available. The act stipulates that it must not be possible for a person to detect that his or her conversation is being monitored by the respective government agency.
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