3 ms·
If this is really where they are headed, it is just ineffective product strategy and fuzzy thinking on Microsoft's part. They get two things: Technology: Thes
by aneth 15y ago
If this is really where they are headed, it is just ineffective product strategy and fuzzy thinking on Microsoft's part.
They get two things:
Technology: These are technologies Microsoft already has or could develop cheaply (say, for 1% of the cost of Skype?).
Users: Yes, no one will buy Microsoft because it is integrated in "some useful way" - whatever that means. 99% of the utility of Skype is already present without an integration - and other products can also integrate with Skype or other similar technologies if there is really a value add there. There is no sustainable market advantage and no value compelling enough to affect a purchase decision. Users have all they need from Skype - making calls one click away or some light simple integration like that is not a reason to spend 8.5B on a company.
Words like "synergy," "cross-sell," "eyeballs," etc. were no doubt tossed around the MS board room with this vision in mind. Abstract synergies don't work, and integrating unrelated products doesn't work.
Ebay bought Skype because they thought lack of telephony was the reason they were getting their but kicked by Taobao in China. Nobody cared and users weren't interested. Ebay was losing because their pricing and service model were wrong for the market, but it's easier to buy companies than fix your own, so that's what they did.