11 May 2011 | Author: N. Hamilton Media copywriter
Microsoft has officially outbid Google and Facebook to buy Skype for $8.5 billion. But now the bidding war's over, what's next for Skype-soft and just why have Microsoft spent so big on a firm that's been valued at just $1 billion?
In a press release on the purchase, Microsoft last night indicated the move will enhance Redmond's real time communications product portfolio, while bringing Skype to Microsoft's huge corporate consumer base.
But tech pundits weighed in that there's more motivating Microsoft than simply improving comms across its Lync, Outlook, Messenger, Hotmail and Xbox Live platforms.
In fact, interviews with Microsoft's Steve Ballmer and Skype CEO Tony Bates (now president of the newly minted Microsoft Skype Division) suggested the move may mark a sea change at Microsoft that will see the software giant focus on the consumer market as well as the corporate market.
Gartner analyst Leif-Olof Wallin told USA Today that pairing with the suppliers of popular technologies - notably Nokia, Facebook, BlackBerry and now Skype - is the best way to ensure Microsoft will become a 'big player' in the consumer market.
"This is the only realistic consumer strategy for Microsoft," Wallin said. "It needs to be as agnostic as possible and make sure it is on whatever platforms consumers in different geographies choose to use."
Analysts are also cock-sure that Microsoft's spent big in order to outbid Google's acquisition team and to keep Microsoft competing with Mountain View.
"Microsoft doesn't want Google to get Skype," a chief Enderle analyst told USA Today.
Tech analyst Jack Gold also commented that pairing with Skype could enable Microsoft to push Bing "as a preferred alternative to all the millions of Skype users" and to better dent Google's stranglehold on search.
However, the New York Times suggested Microsoft's doing more than gunning for Google and diversifying revenue streams.
Instead the publication said Microsoft is embracing new communications technology in a way that could catalyse the mainstream adoption of video comms, creating a massive - and lucrative - market all its own.
Sold: Microsoft buys Skype for $8.5 billion
Microsoft has officially outbid Google and Facebook to buy Skype for $8.5 billion. But now the bidding war's over, what's next for Skype-soft and just why have Microsoft spent so big on a firm that's been valued at just $1 billion? In a press release on the purchase, Microsoft last night indicated the move will enhance Redmond's real time communications product portfolio, while bringing Skype to Microsoft's huge corporate consumer base.
But tech pundits weighed in that there's more motivating Microsoft than simply improving comms across its Lync, Outlook, Messenger, Hotmail and Xbox Live platforms.
In fact, interviews with Microsoft's Steve Ballmer and Skype CEO Tony Bates (now president of the newly minted Microsoft Skype Division) suggested the move may mark a sea change at Microsoft that will see the software giant focus on the consumer market as well as the corporate market.
Gartner analyst Leif-Olof Wallin told USA Today that pairing with the suppliers of popular technologies - notably Nokia, Facebook, BlackBerry and now Skype - is the best way to ensure Microsoft will become a 'big player' in the consumer market.
"This is the only realistic consumer strategy for Microsoft," Wallin said. "It needs to be as agnostic as possible and make sure it is on whatever platforms consumers in different geographies choose to use."
Analysts are also cock-sure that Microsoft's spent big in order to outbid Google's acquisition team and to keep Microsoft competing with Mountain View.
"Microsoft doesn't want Google to get Skype," a chief Enderle analyst told USA Today.
Tech analyst Jack Gold also commented that pairing with Skype could enable Microsoft to push Bing "as a preferred alternative to all the millions of Skype users" and to better dent Google's stranglehold on search.
However, the New York Times suggested Microsoft's doing more than gunning for Google and diversifying revenue streams.
Instead the publication said Microsoft is embracing new communications technology in a way that could catalyse the mainstream adoption of video comms, creating a massive - and lucrative - market all its own.
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