The Jeff Pulver Blog: Enough with the Skype! Gossip:

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November 26, 2005

Enough with the Skype! Gossip:

Maybe one day the IP Communications industry will be so mainstream that the tabloid magazines that publish the photos the paparazzi take of Hollywood celebrities and music icons will include the stories of the scorned teams that helped make a company happen and whose dreams were taken away because a strategic deal got in the way. O.K. there already was that story about Skype in Vanity Fair Magazine right after the story about Jennifer Aniston, but, until this really happens, we only have our friends who have joined the Skype Paparazzi crew (including: Andy Abramson, Om Malik, Mark Evans and others) who have decided to gossip about the “dark days ahead” of the company. Guess it must have been an otherwise slow news week.

Like it or not, the eBay/Skype merger was a transformational event in the world of computing and communications and it helped drive home the concept that in the land of IP Communications, voice is just an application and not a service.

Right from the launch of Skype it was pretty clear that Skype represented the second wave of the IP Communications revolution and it has been a fun watching them do what they do best. Disrupt the status quo.

While the success of Skype didn’t kill SIP, Skype provided a much needed wake up call to the IP Communications industry and has encouraged a new generation of developers to rethink their approach to how to facilitate peer to peer communication. To their credit, Skype launched a product that was easy to use, navigated NATs and Firewalls so that the consumers didn’t have worry about such things, licensed great technology from Global IP Sound so that their product would have a high quality sound and could be used as a speaker phone (with built-in echo cancellation) . Oh and Skype also embraced the developer community and published an API to encourage others to add value to their platform.

A number of friends who make career bets on the success of SIP are now embracing the latest SIP trend, Peer to Peer SIP and their drive and dedication of making Peer to Peer SIP a reality has come from watching the success of Skype.

What happens next in the life of Skype is in the hands of their current management. The impact that Skype has had in the world of IP Communications can not be taken away and they are a living case study of: “How to be a Disruptor.”

Tags: voip, skype

Posted by jeff on November 26, 2005 09:49 AM | Permalink

Additional resources: #140conf events | Watch the Jeff Pulver Show | Jeff's Qik Videos

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First, you cannot argue with what Skype has done in the world of IP communications, they have been downloaded over 210 million times in just over 29 months, have served over 17 billion minutes and routinely have near 4 million people online at any given time, sounds pretty good to me. Secondly even though Skype has been very well adopted and has been considered disruptive by many, does that mean that it will change the marketplace forever, a disruptor(temporary) is one thing, but a revolutionary(somewhat permanent) is another. So what is Skype? Well I would’ve thought they were somewhat of a revolutionary application, they made Voice over IM work. Yes, AOL and Yahoo and other services have had voice features for years, but the lack of broadband and affordable computers for all were still lacking and even then if you did have broadband and a computer who was to say that those you would want to talk to did.

What Skype did was come in when the market was hot (and ready) for such a product and made it work so well and made it so easy to use that they became a revolutionary force in the market. Zennstrom and his team had done this well before with Kazaa, but the one problem they had back then was that they were facilitating the transfer of copyrighted materials (Note: I do not mean to sound all high and mighty, but from a legal standpoint Kazaa wasn’t exactly the most straight shooting product out there. Disregard the fact that the artists had better sales back in those days and the RIAA hasn’t alienated a ton of folks with their lawsuits, but enough of my tangent).

Skype didn’t do anything illegal, sure a lot of ISPs and other carriers claimed that Skype was using up their bandwith, because of the P2P nature of it, but as far as I am concerned I have purchased my internet connection and as long as I am not breaking the law with it, I expect my provider to not care. Did the providers get scared when ICQ and AIM came out or even MIRC, or even Kazaa for that matter, no they did not. Why is that? Well for the first three it is because IM will never take the place of traditional phone calls (a business that a lot of internet providers also dabble in), and Kazaa didn’t bother them because the RIAA and MPAA could take the service down and save the providers a lot of money.

But the problem with Skype is that it threatens the profits of the providers and even though thedisruptive force of Skype was great, if the true nature of the application is pushed off into the side because of CALEA and defections from the company does that make it important in the marketplace? Yes it does, but will Skype be remembered as the reason that all of the ISPs throughout the world developed their own software based VoIP application and made you use it at a fee agreeable to them (Skype as distruptive), or will Skype be remembered as the application that made communication free and changed the business model of the telecommunications industry? (Skype as revolutionary)

It is too early to tell, but the recent employee defections and the fact that Skype has not released video capabilities, (something that has been anticipated for a long time now) could be a bellwether for the times ahead for Skype. Time will tell.

Posted by: Mike A at November 26, 2005 11:30 AM

November 26, 2005

Enough with the Skype! Gossip:

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