Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    Seeing Beyond the Hype of Skype

    By
    eWEEK Editorial Board
    -
    September 26, 2005
    Share
    Facebook
    Twitter
    Linkedin

      Skype, a company that almost no one had heard of barely two years ago, came out of nowhere to achieve immense popularity as a provider of tools for consumer Internet telephony. Skype makes voice over IP so easy to use that word-of-mouth marketing by satisfied users was all that was needed to make its software spread worldwide, bringing in millions in revenues—anticipated to be $60 million this year.

      So spectacular was Skypes skyrocketing popularity that online marketplace titan eBay agreed to pay an astronomical sum—between $3.7 billion and $4.1 billion—for the company.

      We think eBays embrace of VOIP is exciting. Giving buyers and sellers the ability to talk and to haggle over transactions can only improve the user experience at eBay, already a tremendously successful online marketplace.

      Other marketplace sites, such as Yahoo and MSN, were reported to have had discussions with Skype and will presumably continue to develop Internet telephony strategies. We think expanding the use of VOIP is the kind of IT innovation we all need.

      However, this progress comes with a price that is worth pausing to consider for a moment. First, the price that eBay paid is so high—potentially 68 times Skypes revenues—as to evoke memories of the dot-com bubble. While some have fond recollections of that time, we loathe the days when harebrained business plans sucked up billions of investment dollars that could have been used to back ventures delivering real benefit.

      Sure, its eBays money, but wed hate to see a positive trend toward wider VOIP usage undercut by a go-go mentality that obscures the real value inherent in the technology.

      /zimages/4/28571.gifClick here to read more analysis of eBays motives for the Skype purchase.

      For Skypes 54 million registered users, the acquisition clouds the clear skies of free Internet phone calls with unanswered questions. Will eBay link Skypes services exclusively to its marketplace sites? Will eBay seek to recoup its huge investment by charging for the service? Will American ownership open up all users to the more stringent provisions of the USA Patriot Act? Or, will deep eBay pockets produce big bucks for much-desired enhancements, even as Skype continues as a free worldwide service?

      We strongly urge eBay to answer this last question in the affirmative. The world needs it, and Skypes loyal customers deserve it. Its not a great leap for Skype developers to add video to current capabilities. Video interaction between buyer and seller can go far to bolster the feeling of trust that is so essential to e-commerce. eBay management has done so many of the right things in that companys rise to the top that we trust it will also do the right thing in this case.

      Indeed, the company is talking about investing in future Skype services. If, however, eBay management takes things in another direction, we dont doubt that another provider will rapidly fill the niche that Skype discovered and so masterfully filled.

      What do you think? Send your comments to [email protected].

      /zimages/4/28571.gif Check out eWEEK.coms for the latest news, views and analysis on voice over IP and telephony.

      Avatar
      eWEEK Editorial Board

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×