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Skype's network effect and lock-in is extremely small compared to something like Facebook, or even something like an IM network. Think about it: early adopters
by alex_c 16y ago
Skype's network effect and lock-in is extremely small compared to something like Facebook, or even something like an IM network.
Think about it: early adopters (techies) start using a free competitor (or several free competitors). They get their less tech-savvy friends and family to switch. The rest of the world follows. It's easy to explain ("It's like Skype"), the carrot is obvious ("except it's free"), and the lock-in is minimal - download a new client, enter the contact you want to call, and you're done. There's no chat history, or complex social network, or tons of uploaded pictures, etc. etc., to keep people from switching.
I don't think the "mundanes" really use Skype, they still use regular phones. If someone's savvy enough to use Skype, they're savvy enough to switch to a free competitor if it's good enough.
- dirtyaura 16y agoQuote: I don't think the "mundanes" really use Skype You are wrong based on my experiences. Skype is used for free international calls all over the world by "mundanes". Immigrants use it to communicate to their home countries. A local immigrant-run mom&pop store in my Helsinki neighborhood is even advertising Skype-calls in addition to normal international calls. And I think that Skype has some brand value as it's been used for these very personal calls between family members. However, you are right that the network effect for Skype is not that strong: As it's used for "calling home", a hypothetical better and "cheaper" Skype-competitors can spread family-by-family, as it's easy to replace only two endpoints. But it will nevertheless take several years, which gives Skype time to adjust their strategy.
- alex_c 16y agoSemantics - I just don't see any point in calling Skype users "mundanes". They had the incentive to learn how to use the technology because of the cost savings, they'll have that incentive again in the future if it becomes necessary. I think we're basically in agreement.
- dlsspy 16y ago"Skype's network effect and lock-in is extremely small compared to something like Facebook, or even something like an IM network." Skype is an IM network. I really hate that I have to use it sometimes for that.
- amix 16y agoLast time I checked Skype's user count was above 500 million and they have 50+ million daily active users. Their network effect is pretty huge.
- alex_c 16y agoThat really depends on the average size of someone's network. How many networks are only composed of 2-3 endpoints? (most common example - talking to family "back home"). Compare to Facebook's 100+ average network size.
- dedward 16y agoIt is humungous, to be sure. The only reason skype is the king right now is because nobody has motivation to switch to anything else. Skype works, without hassle. It's a good product. The moment it ceases to be a good product, though, there is nothing holding them in their marketplace. The world can hop onto a new piece of p2p VOIP software in the blink of an eye.