MS-Skype deal to change the game

The recent Microsoft-Skype deal will represent a pretty big sea change for not only the voice over Internet protocol (VOIP) sector, but also the broader software-as-a-service (SaaS) industry, says ITWorld.

Microsoft has not gained a lot of ground in the cloud, with Bing still behind Google, and not much success reported for Office 360 in comparison to other cloud services like Google Docs, either. Getting a hold of Skype, though, would be a big brand-name acquisition for Microsoft and put it right into the middle of the cloud game.

The report says Skype has been a hot little property in the cloud market for some time, since eBay, the former owners of Skype, sold a majority share to an investment consortium in late 2009.

The WSJ article speculates that Microsoft may be acquiring Skype to bolster their lagging Windows Phone offerings. It certainly couldn't hurt, since Google's Android and Apple's iOS are effectively destroying the Windows Phone. But, the article adds, Microsoft would have to be careful, if indeed this was the plan.

However, Fast Company says for Skype to remain relevant to its core base, it must retain a consumer-focused, free product that can be incrementally up-scaled with services. Microsoft could help Skype create a more rational service structure so that users can understand what they are buying and how long it will last under various circumstances.

Unfortunately, the report states, Microsoft is about to enter the world of telephony and International carrier tariffs that isn't for the faint of heart. I think one of the reasons Skype has had trouble making money is that they expose this irrational underbelly of telephony on one hand and eliminate it completely on the other.

Microsoft may find itself in a strategic battle against phone companies on an International level.

Tech Crunch looks at it differently, saying the implications of this deal for Facebook are actually far more interesting. Since Microsoft is an investor in Facebook, the latter will now have deep access to its investor's assets.

Being able to Skype from within Facebook means Mark Zuckerberg will not have to build his own VOIP communications platform - a seriously complex affair for 600 million users. Plus, the social network already has tie-ins with Skype.

But it also means both Microsoft and Facebook now have a stick with which to beat Apple and its emerging communications platform, Facetime. With Facebook integration Skype will not be so heavily linked to an actual device - as Facetime is with Apple devices. Note that Microsoft has pledged to “continue to invest in and support Skype clients on non-Microsoft platforms”.