Why buying Skype is a great idea for Microsoft

May 11, 2011 by Andrew Seymour

Skype has been hugely successful in becoming an incredibly large platform for both consumers and business users to communicate with people from around the world. Although arguably not one of the largest networks as obviously Windows Live provides a greater user base but, Skype has already seeded itself onto Apple and mobile devices.

So why would Microsoft buy it? It fit’s so well into the core communication strategy, when you acquire a company like Skype there’s lots of different things that you can do with it. Personally, and this isn’t verbatim Skype may very well remain an independent system and platform with it’s own strategies surrounding the future development of the Skype software however, I believe it’ll become a cross-platform whereby, you’ll be able to communicate with Windows Live users on Skype and vice-versa.

Steve Ballmer, Microsoft CEO already confirmed that he has great intention of bringing Skype to the xbox and a Windows Phone 7 (slated for the 7.5) application has been demo’d demonstrating the technology within the Windows platform. It’s a way for Microsoft to quickly expand it’s user base and inherit the technologies that underlay Skype and use them within it’s own developed products.

Is $8billion too much though? What is too much for a company with more than $50 billion sitting in the back and just a few years ago had an idea to spend $40 billion buying back it’s shares. The Microsoft Skype platform will develop and I actually believe that Microsoft will keep growing the Skype platform and Windows Live user base closely integrating and linking them together.

There is money to be made from this platform and I’m sure one of Microsoft strategies will be to monetise it in a way for it not to be interfering with the overall experience but still deliver on profits.

Happy Microsoft Skyping!

Categories: Microsoft, Software, Windows