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Microsoft Bets Big On Skype – A BT Futures Report

Redmond Will See Little Revenue, But Integrating Skype Will Bolster Products

    Why Read This Report

    Microsoft announced its decision to purchase voice over IP (VoIP) innovator Skype for a jaw-dropping $8.5 billion, acquiring 660 million users around the world — though barely 1% of these are paying customers. Will Microsoft magically turn this wealth of eyeballs and conversations into a revenue stream? No, but there is considerable value in Skype, provided Microsoft's consumer product strategists successfully integrate Skype's communications tools deeply into Xbox Live, Windows Phone, and Office. But Skype succeeds as an open, cross-platform innovator and Microsoft must embrace that approach if it hopes to leverage its new toy to its fullest extent.
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