05.10.11

Debt-saddled Microsoft Wastes Money on Skype While the Staff is Leaving

Posted in Finance, Microsoft at 7:12 pm by Dr. Roy Schestowitz

Skynet

Summary: Another high-level man and marketing head leave Microsoft, which seems to have forgotten what business it was originally in

SKYPE is as dead as Hotmail now that Microsoft put its hands on it. If Microsoft is driven by Google envy and Googlephobia (Google enters the voice communications market), then it will end up no better than against GMail. See what Microsoft did to Hotmail after it had bought its way into the market.

By looking elsewhere and wasting money that hardly exist Microsoft is losing sight of problem inside the helm and yet another bigwig is leaving, joining many others like himself.

Kim Cameron, a Microsoft Distinguished Engineer and Chief Architect of Identity, left Microsoft as of May 4, according to my contacts.

“Chaos in Microsoft” calls it our reader who also sent this link:

But when Microsoft yanked the Bing and Office accounts from JWT barely three weeks into new Chief Marketing Officer Chris Capossela’s tenure — and while longtime CMO Mich Mathews is transitioning her way out — the speed of the shift prompted questions about what was behind the move, coming at critical time for the tech giant’s consumer-marketing initiatives.

That’s not the end of that. Microsoft’s cash cows are dying and the company seeks replacements quite desperately. Even Microsoft employees rebel.

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14 Comments

  1. dyfet said,

    May 10, 2011 at 10:41 pm

    Gravatar

    I really very much appreciated Glyn Moody’s comment best “the Skype deal is obviously a desperate reaction to GNU Free Call” ;). We actually do have our own plans that we are executing on this month.

    Dr. Roy Schestowitz Reply:

    Most people I speak at are looking for alternatives right now. It’s a crucial time to absorb them. Last night I spoke on SIP for 3.5 hours.

  2. Agent_Smith said,

    May 10, 2011 at 10:42 pm

    Gravatar

    Oh, no, a little too late for Skype and M$. Was it four years ago, when Skype was in its peak, that would be interesting.
    Now, Skype is no novelty anymore, every company has its own voip, a la Skype and its importance begins to fade. Once you wrote, Dr. Schestowitz, Micro$oft is where products come to die. Well, Skype is a wounded elephant, going to the graveyard.

    Dr. Roy Schestowitz Reply:

    It seems like Microsoft’s patent troll Acacia was slogging Skype based on these links.

    twitter Reply:

    The financial status and number of users Skype had is irrelevant to anti-trust.

    Skype was the only VOIP that I was able to set up easily for gnu/linux two years ago. Anything that runs on Windows is only as reliable as Windows itself, which all major cell phone carriers have rejected.

    The patent issue is extremely important for video and VOIP and shows the harm done by software patents. Because of patent problems, it took all the way to November of 2008 to get a stable release of a free video codec up to the task. Non free software allies immediately claimed they would form a coalition to sue users for patent violations. This is outrageous.

    Microsoft’s purchase of Skype takes away the best working and most popular VOIP outside of Windows, as all others are suppressed by lawsuits. Looking back, I see that Skype themselves were under lawsuit attack. How can that not be an anti-trust violation? They failed to ruin Skype so they bought them out.

    Dr. Roy Schestowitz Reply:

    Perhaps there was a bidding war and Microsoft wanted to keep it out of Google’e hands or even Facebook’s.

    http://edition.cnn.com/2011/TECH/web/05/11/google.skype.wired/index.html

  3. Adrian Malacoda said,

    May 10, 2011 at 11:42 pm

    Gravatar

    I personally can’t wait for Skype to die, especially on GNU/Linux. I hope it’ll pave the way for a free alternative.

    Dr. Roy Schestowitz Reply:

    I think you are right. This is why a part of me is happy about Microsoft burning money and burning a piece of software people lacked a good excuse to leave (they know what “Microsoft” means, not what “proprietary” means).

    twitter Reply:

    The deal should be blocked by anti trust regulators. Last night in IRC, I showed how Skype themselves had been extorted for software patent infringement by Microsoft partners. There was no substance to the patents and charges and the Microsoft partners mostly lost but that does not mean the strategy was not successful. Had Skype been free to advertise their service or invest in broadband deployment instead of paying lawyers, they would be larger and more successful now. Microsoft should not be rewarded for their actions.

    Baring real justice, we have to hope that Microsoft does to Skype what they did to Hotmail, etc. If they don’t ruin it, they can screw free software alternatives with legal and technical attacks. Free software projects face the same extortion threat Skype did but worse because Microsoft now owns skype and can pretend to be an innovator even if they only deliver a fraction of what Skype already offers. If Microsoft does not destroy Skype, the public might not care so much. “Why do you care? VideoPhone (TM) is part of Windows, just buy a new PC and you will have it.”

    Agent_Smith Reply:

    I believe the contrary will happen: Skype now is a company working abroad, far from US and their crazy patent system.
    When they land on US, brought by M$, there will be dozens of patent trolls already waiting to sue them(and M$ along)

    dyfet Reply:

    This is a primary reason that GFC is being organized, and even much of our past work leading up to it has largely been developed, explicitly outside the United States. It is already no longer possible to do original work here.

    Dr. Roy Schestowitz Reply:

    Is there any new introduction/invitation page for a SIP client that can be promoted/reposted?

    dyfet Reply:

    I am hoping we may be able to do something as early as the middle of next month that will answer your question particularly well…

    Dr. Roy Schestowitz Reply:

    Looking forward to it.

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