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What threatens Skype?

By Yukko Ahalo


Planning its first IPO, Skype has split. In the paper prepared by Skype for the U.S. Securities and Exchange Commission the manufacturer described what it imagines to be the critical threat to its business. The most important threat to Skype is software platforms such as Apple.

It is claimed that "for instance, Apple can always take away our software from its Apple Store without consulting us, thus limiting Skype's work in Apple iPads, iPhones and iTouches. So, they can easily make their own programs such as Apple Face Time more competitive". (In this article we express our own free interpretation of what has happened).

And other online software stores are not exceptions here. Even those online software stores dealing with Android-based devices could act like Apple. The Skype committee supposes that "holders of online software stores have ultimate control over services and products based on their software. If they suppose that Skype is very competitive or prevents them from selling their own similar product, they will get rid of Skype or significantly limit its options".

Plus, mobile phone companies threaten Skype. Skype's options can be limited within their networks anytime. The company goes on complaining that Skype's business strategy, however, "relies on the possibility to go on advertising its usage with mobile devices. We have already undergone from such actions in Europe".

And finally Skype is afraid of its own weakness. It was initially designed for individuals while business clients are going to be company's basic source of money. "We might lose a chance to create services capable to provide the business class with what it needs because its purposes are not similar to those of individuals who we always work with. We have already tried to make our business class services more diverse, but this might not be enough. And it is still unclear if we will be able to pay off the expenses spent on creating the services".

And this, it turn, will destroy our ability to compete with companies working with the business class services because we won't be able to destroy the "loyalty of business clients to software contributors" and "old-fashioned views of IT-specialists who have no wish to go for less diverse Skype services".




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