Skype, Founders Settlement in the Works

28 thoughts on “Skype, Founders Settlement in the Works”

  1. Hey Om:

    Glad you caught my comments. I might also add there are tons of advantages to making part or all of the backend SIP compatible:

    (1) you can work cleanly with all the hardware out there from Cisco, Avaya, et al. in the enterprise market. Skype is certainly SMB, but there are tons of advantages for them if they can do deals and interconnects with that market to further push into the business market.

    (2) server-side infrastructure makes mobile interconnections much more scalable. Historically, the Skype client had to be virtualized in the cloud to interconnect with mobile phones in a mass-scale way. The best at doing that would be iSkoot (see Mark and Jakob and all the work they have done there). But even then, iSkoot is moving beyond that as it has issues/limitations (props to them).

    (3) all the stuff that Skype wants to do better is easier…voicemail in the cloud, conferencing in the cloud, etc. which is part of going “upstream” in the business market. By moving away from P2P, all this becomes more straightforward and faster to deploy an innovate.

    Anyway, there are cost savings with P2P, but certainly there are many, many other advantages to doing a blended or server-side model, like SIP. And even the cost savings are modest or exaggerated as much of the media still moves P2P.

    Good stories today on Gigaom! Nice work to you and Ian.

  2. The most amazing thing about this story is that eBay bought Skype for multiple billions of dollars and that STILL didn’t include this core technology. Perhaps the most overvalued acquisition of all time…

  3. We are the team of inventors behind US Patent 7,089,319 issued in 2006 titled “Method and system for instantaneous on-demand delivery of multimedia content over a communication network with aid of content capturing component, delivery-on-demand client and dynamically mapped resource locator server”.
    We introduce “Skype-killer” application, with new innovative “Internet broadcasting” functionality, as well as unmatched web browser centric cross-platform, cross-device reach. We will be able to compete on VoIP signal quality, innovative “Orbing” (P2P live and pre-recorded video broadcasts by individuals), as well as lower cost base. Skype is facing multiple litigations and is about to either be shut down permanently, or enter very expensive settlement arrangements. Plus, Skype is not in control or ownership of Global Index technology, the node forming augmentation of delivery system which they push to each user computer.
    We are actively pursuing venture capital. Please visit http://www.skypeishype.com for more detail.

  4. There are other business and technical choices than switching to SIP, with or without Gizmo5.

    The investor group could compel Index Ventures to keep Volpi and their Skype alumni at arms’ length, or fire them; better insulating themselves from the Joost suit.

    The investor group could replace Index Ventures; it’s only contributing 5% or so to the purchase price.

    The investor group and eBay could let the founders buy Index Ventures’ share, a minority stake that will net to about 2.4% equity post deal.

    Skype can buy existing “global index”-like technologies from other companies.

    Skype can build its own; they’ve been acquiring p2p talent in this area, talent that’s working feverishly to make it work as well as the Joltid.

    Skype still has more than seven months before a UK court rules that Joltid’s technology wasn’t patentable or protected, that Joltid and the founders were in breach of their contract to support Skype, that Skype was not in breach of their contract with Joltid.

    Skype could demonstrate the “secrets” were moot.

    Perhaps eBay could even sue the founders directly for abandoning their leadership responsibilities at Skype to work on their Joost side project. The founders didn’t get their billion dollar payout because they were unable or unwilling to meet goals to which they’d committed. You could cite that as evidence that their hearts and minds and best efforts were no longer on Skype while still at Skype’s helm.

    It’s always worth something to make predatory and nuisance lawsuits vanish for good. What’s the right number for this situation? What number makes the thieves stay away without killing the goose that lays the golden eggs?

    Skype/eBay may even show that Volpi, a suit who hasn’t touched code in a long time (since college?) couldn’t know any secrets with enough specificity to effectively transfer knowledge between Joost and Skype engineers.

  5. Firstly, we replaced most of Jeff Bonforte’s code/work at Gizmo5. Also he is naive if he thinks that the cost savings of an autonomous distributed system isn’t a magnitude. Gizmo5(SIPphone) had during Jeff’s tenure a mere ~4K simultaneous users “in call”. As far as I know Jeff hasn’t worked on p2p overlay networks in the past, merely SIP and is in no position to make these claims. I have worked in both fields for over a decade now. If SIP could scale without adding new hardware, man hours, bandwidth, etc we(the p2psip WG) would not be drafting this: http://tools.ietf.org/html/draft-ietf-p2psip-base-05 and Skype would NOT be the leading VoIP provider.

    Secondly, why leave the readers thinking that SIP is an option? This is false as it stands today with Skype. Skype is settling behind closed doors and will keep “renting” the GI stack. Rent is to be paid as ownership in Skype to N/J.

    Good Day.

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