Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Why Microsoft bought Skype

cringely.com

Post reply on HN
Print view View original

61–70 of 95 posts

Re: Why Microsoft bought Skype

#61

Post by rbanffy »

fauigerzigerk wrote: post #14

I don't believe that at all. Google doesn't need Skype. Microsoft bought Skype because they have large amounts of cash in Europe that they cannot repatriate without taking a huge tax hit. For some strange reason, Ballmer has that obsession with hyperactively pursuing the same consumers that Google and Apple have. That's why he didn't see anything else to buy in Europe (Actually there isn't a whole lot). But there is…

Give Ballmer a couple years and SAP may be able to buy Microsoft.

That was unfair - Microsoft's demise is not completely Ballmer's fault. The market has been changing in directions Microsoft was not able to follow at speeds they were never able to match.

Re: Why Microsoft bought Skype

#62

Post by hnhg »

fauigerzigerk wrote: post #14

I don't believe that at all. Google doesn't need Skype. Microsoft bought Skype because they have large amounts of cash in Europe that they cannot repatriate without taking a huge tax hit. For some strange reason, Ballmer has that obsession with hyperactively pursuing the same consumers that Google and Apple have. That's why he didn't see anything else to buy in Europe (Actually there isn't a whole lot). But there is…

They have begun taking on Oracle and SAP after buying Navision and turning it into Microsoft Dynamics. From what I've seen, it's a very strong product and I'm expecting it to do well.

EDIT: Link here: http://www.microsoft.com/en-us/dynamics/default.aspx

Re: Why Microsoft bought Skype

#63

Post by Hawramani »

shareme wrote: post #48
mcantelon wrote: post #34

Tldr: Cringely believes Google is the next Microsoft. Microsoft is worried about its future and bought Skype so Google wouldn't buy Skype. Cringely believes Apple, however, is a magical unicorn that Ballmer cannot even comprehend.

Cringely is wrong again.. read Steve Levy's GooglePlex take on it..Google Passed on buying Skype not once but twice..

That doesn't rule out the existence of third offer. Just saying.

Re: Why Microsoft bought Skype

#64

Post by raisenBran »

fauigerzigerk wrote: post #14

I don't believe that at all. Google doesn't need Skype. Microsoft bought Skype because they have large amounts of cash in Europe that they cannot repatriate without taking a huge tax hit. For some strange reason, Ballmer has that obsession with hyperactively pursuing the same consumers that Google and Apple have. That's why he didn't see anything else to buy in Europe (Actually there isn't a whole lot). But there is…

I think you are missing the main point that the article is arguing.

You're right about Google. They do not need Skype, but the article does not say anything about Google needing Skype at all. The article only said Microsoft needed Skype. It was a defensive measurement on Microsoft's part.

I think this is the most important sentence of the article: "Were Google to buy Skype they’d convert those 663 million Skype subscriptions to Google Voice and Gmail and in a swoop make parts of Yahoo and MSN irrelevant." This is important for a number of reasons.

1. If Google were to buy Skype, the 663 million users would probably convert to Google's search engine - if they have not already - and not use Bing, which Microsoft has invested heavily in.

2. By buying Skype, Google could force the 663 million users to only register with a Gmail account. Meaning, those with an MSN email account would be forced to convert.

3. Google would also integrate Google Voice with Skype. With the two utilities working together, they would make an incredibly powerful tool, and the users might start to rely on the two combined utilities. This would mean the users would want the utility on their phones which entices them to buy an Android phone and not a Windows phone.

4. With the buy, Google was looking ahead in the future. They could integrate Skype with Google TV. (Which I know was first a failure, but they are still banking on the idea. They'll come out with it again soon enough.) They would also integrate with Chrome OS, and, if the users come to rely on it heavily with the integration of Google Voice and Android, then it would entice them to us Chrome OS and not Windows.

I think Google had much more use for Skype compared to Microsoft. So, Microsoft did not buying it to go after the consumers of Google and Apple; instead, they mainly bought it to keep their users.

Re: Why Microsoft bought Skype

#65

Post by contextfree »

raganwald wrote: post #50
contextfree wrote: post #41

Earlier quoted context omitted.

They think that what's popular with consumers will eventually make its way into enterprise. Or in other words, their consumer efforts are the steps they're taking to (try to) protect enterprise dominance in the long term.

You might have something there! A few years back I wondered if enterprise software was experiencing a disruption because of the way user expectations were being set outside of the company: http://weblog.raganwald.com/2007/09/we-have-lost-control-of-... Maybe Microsoft sees this they way you suggest and believes that by controlling the consumer experience, they will also control the enterprise experience. For example,…

Yeah, this isn't my speculation, it's how Ballmer and others have been publicly justifying their decision to continue targeting both consumer and enterprise instead of splitting up into two companies or dumping the consumer side.

Re: Why Microsoft bought Skype

#66

Post by zmmmmm »

I can't agree with this. The basis of it all doesn't make sense:

> Were Google to buy Skype ... they’d build a brilliant Skype client right into the DNA of Android

Google has had loads of opportunity to build VOIP functions into Android and has dragged their feet all the way. They already have a a voice chat service and it has no presence in Android (edit: yes, just now they released video chat, but only for a tiny percentage of phones). The latest versions have some SIP functions but it's clearly been kept obtuse enough to prevent any mass consumer take up. Google is heavily constrained by needing not to offend the carriers. The idea that they would en masse integrate something that would destroy their business models is delusional.

Re: Why Microsoft bought Skype

#67

Post by leandrod »

hnhg wrote: post #62
fauigerzigerk wrote: post #14

I don't believe that at all. Google doesn't need Skype. Microsoft bought Skype because they have large amounts of cash in Europe that they cannot repatriate without taking a huge tax hit. For some strange reason, Ballmer has that obsession with hyperactively pursuing the same consumers that Google and Apple have. That's why he didn't see anything else to buy in Europe (Actually there isn't a whole lot). But there is…

They have begun taking on Oracle and SAP after buying Navision and turning it into Microsoft Dynamics. From what I've seen, it's a very strong product and I'm expecting it to do well. EDIT: Link here: http://www.microsoft.com/en-us/dynamics/default.aspx

I have been expecting it to do well for several years already. Not really, but I guess you make my point.

Re: Why Microsoft bought Skype

#68

Post by tjmc »

cletus wrote: post #15

Am I the only one who has had terrible experience with Skype? I live in New York but my family is from Australia so I use video-calling them to them all the time. I've tried using Skype but basically it's terrible. Poor audio, choppy frame rates and at some point it will start giving messages about "degraded performance" and we'll lose video. My setup is a 50Mbps cable line using wireless (N) from a Macbook Pro. The…

I make regular Skype video calls from Perth Australia to by brother in Mountain View and the video and audio quality is excellent. We both have decent but not stellar bandwidth (~4Mb/sec at my end) but I think it also comes down to having good hardware.

Re: Why Microsoft bought Skype

#69

Post by abecedarius »

rbanffy wrote: post #59
erikpukinskis wrote: post #47

Earlier quoted context omitted.

I've waved the "What did Microsoft ever invent?" flag plenty in my life, so let me try and advocate for the devil: Microsoft basically invented the hardware-agnostic software platform. Before Microsoft, there were a variety of hardware platforms, each with their own libraries and languages... not unlike the situation today with phones. Developers had to choose what to target... not only Mac vs PC, but different video…

> Microsoft basically invented the hardware-agnostic software platform Digital Research did that. You could run a CP/M program on any CP/M-capable computer. Microsoft tried that with MSX (and failed) and then with MS-DOS (and succeeded on a different hardware platform). Only then, different graphics cards and printers became relevant. > Other than that, I don't think Microsoft invented much Visual Basic is one thing…

Note that VB was an outside acquisition.

Re: Why Microsoft bought Skype

#70

Post by Facens »

The reason behind this acquisition is signaling to the market, and to Microsof's competitors, that MS is still strong and wants to play as a leader in the market. This acquisition is not justified by business reasons, it's a matter of game theory ;)
Post reply on HN