Why the Skype-Facebook deal is awesome for Facebook

8 thoughts on “Why the Skype-Facebook deal is awesome for Facebook”

  1. Om, insightful post as always!

    IMHO this is all about Skype’s bright future as *the* video calling service, integrated into dozens and dozens (and dozens) of communications experiences. You wrote it, “Bates wants Skype to equal video calling.”

    This deal is 5 years in the making and will help accelerate video calling’s growth with average consumers. So if video calling grows and Skype = video calling… then Skype wins more than it loses. Video calling is all about user education and acclimation. The more you use it, the more you use it.

    You note correctly that FB could always remove Skype later on and build its own video calling service. True… but if Skype doesn’t do this deal then that risk is still the same. Yes, FB blocked Skype from getting too deep a relationship with FB users in this integration. One can only assume that when paid Skype products roll out those FB video callers will become more and more aware of the Skype backend and other clients.

    Now if Google successfully commoditizes Group Video Calling by getting enough penetration and getting the experience right then Skype could find itself struggling to monetize, but again, that’s true whether or not it does this deal.

    My full thoughts are here: http://www.caveatcreator.com/2011/07/facebook-now-with-100-more-skype.html

  2. Om, why do you believe Facebook might replace Skype with its own video-chat backend in the future? I thought the daunting task of providing a video server backend is what prompted them to go with Skype in the first place. Skype probably isn’t sharing their internals with Facebook with this deal either.

  3. The fact that this is a better deal for Facebook doesn’t make it a deal that Skype could refuse. They share a mutual foe in Google and there is no shortage of companies with video calling technology that would have jumped at the chance to work with Facebook.

  4. Skype lose big-time in this deal because they start losing their long-term Users who simply will not trust any of their business communication to be even remotely aligned with Facebook. Skype has always been a trusted provider to international tech teams working together; that trust starts to deteriorate as soon as Facebook enters the room.

    I believe we’ll see the heavy video call/international-business user migrate quickly to Google Plus (I already did). Is that any more secure? Not likely. But, there is the illusion of security that makes me more comfortable.

  5. But Facebook dumping Skype makes the rich Grandpa mad. To what extent is Facebook patiently waiting for the lord of the manor to die, and ascend to their seat at the table? Tons of users sure, plenty of opportunities to make money, but MSFT’s got tons of cash, they’ve MADE money. The tension is delicious.

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