Skype Journal

Unbound Spiral: Red Herring and CNET Updates on Skype

December 3, 2003 12:27 PM

There is a continued strong indication that Skype product development is going in the right direction! Two recent articles in CNET and Red Herring on Skype. I found the contrast in the two quotes below interesting. Underlying it is a reality that suggests SKYPE is actually growing a new market for communications, fulfilling an unmet and till now unarticulated need. Concurrently their conference calling capability when provided will change an industry.

By contrast Vonage doesn't' believe that many people will be calling each other using PC's too soon. I wonder if he has worked with full-time live desktop messaging and conferencing applications on his desktop? Please hook this exec to a bluetooth earpiece and enable virtual watercooler conversations to gain visibility. Eg who's talking to who combined with subject etc.

Skype's VoIP ambitions |

When will you have a gateway to the telephone network?
We're working on it...It's something that's going to be much later on.

The interesting thing is that in the feedback we get from users this is not the highest priority. They're more interested in conference calling and voice mail. People are much more comfortable with using the Internet for communications. People are being much more mature with the Internet. They say, "This is my primary way to communicate. The people that I'm calling I'm encouraging them to get on Skype." People are quite happy with that.

There is plenty of anecdotal evidence already that Skype is enabling new conversations. For those early super users -- someone should be tracking "share of voice minutes" --- the PC must already own the majority of their communications time. However like e-mail much is one to one rather than many to many. A simple desktop conferencing program will enable with point n click something that currently can't be organized in a spontaneous fashion.

RED HERRING | The Business of Technology

John Rego, CFO of Vonage, does not think free calling gives Skype an advantage as long as Skype users can call only each other for free. I do not see it as any kind of wide-scale mechanism that will replace the phone system, he says