Implications for Microsoft’s Skype Buy-Out

In May 2012 it was confirmed that Microsoft had bought out Skype to replace Windows Live Messenger. The buyout, estimating $8.5 Billion in cash, has had a number of implications on both companies and their users. The adjustment for businesses from using Windows Live Messenger to Skype will be smooth with the help of computer support in the meantime until Microsoft makes the necessary updates to make Skype more user friendly over time. The Microsoft-Skype deal implies a shift in business goals for the two companies, as well as its use among the rest of the population.

Why did Skype Sell?

Ebay’s acquisition of Skype back in 2005 turned out to be less than they had hoped for. Ebay had planned to synergize Ebay and Skype to boost commerce between users. Ebay users would be able to video chat with each other, and show high value items before buying. However, the Skype presidents and Ebay executives were never held accountable, and the plan to synergize fizzled out after a few small experiments to integrate skype into the user experience. Since then, Ebay has been dying to sell off Skype to regain a poorly utilized investment. Ebay received about $2.55 billion for its 30% stake in Skype.

How Does Microsoft Benefit?

Many onlookers of the Microsoft-Skype deal have been skeptical of any real benefit to Microsoft and have considered the buy a poor investment on Microsoft’s behalf. It has been said that the real winner in the race for Skype has been Facebook. Microsoft’s purchase has effectively kept Google away from Skype and Facebook can now utilize some of Skype’s assets, as Microsoft is also an investor in Facebook. Using Skype as the video chat instead of creating it’s own infrastructure will save Facebook a great deal in overhead costs.

However, under the ever-threatening shadow of Google, Microsoft now has a little more edge in the enterprise collaboration market. Many carriers who may have once been turned off to the bureaucratic structure of Microsoft, are more keen to partner through Skype, giving Microsoft access to many new business relationship opportunities. It will become the best app for Microsoft’s mobile products. Google Voice and Apple’s FaceTime are a real threat to Microsoft, which lacked any superior face-to-face video apps for their mobile products prior to the deal. Microsoft will now acquire Skype’s reported 170 million user base who use the service to make calls to relatives and friends outside the country instead of using a costly phone or texting service.

What is the impact on Windows users?

One complaint for Windows Live Messenger’s users is that the Skype interface varies so greatly from their old Windows Live Messenger interface. While the top trend in user interface is less focused on windows and more on tabs, Skype is a bit behind on this trend, using multiple windows and cluttering up the desktop screen. Using a good computer support service would benefit Windows Live Messenger users well as they navigate the somewhat complicated merge between Windows Live Messenger and Skype. By consulting computer support, business personnel would be using their time more wisely to profit the business, than by researching solutions to problems caused by the merge.