Ebiz skype


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  • The strategy has transformed Skype from an upstart rival into an ally of the major telecommunications players. In February, Skype unveiled a mobile application for use on devices carried by Verizon Wireless, the top U.S. mobile company by subscribers. The company has also developed programs for Apple Inc.'s iPhone and other devices as it more aggressively moves into the mobile world. In addition, it has signed deals with television manufacturers LG, Panasonic and Samsung Electronics to embed Skype technology in their products.
  • For example, if there were only 3 Skype users in the world and 2 were communicating, the 3rd computer would be taxed to support the application, even if not using Skype at the time. The large number of Skype computers means that this activity is diffuse, it can lead to performance issues on standby Skype users, and presents a conduit for security breaches
  • Managing customer relationship at Skype’s neck breaking global growth is an important challengeand may hinder its ability to attract mainstream customer segments. For example, on Skype’scompany-owned customer forums several threads discuss the firm’s ability to guarantee after-salessupport of credit-card-based purchases. Understanding and adapting to customer demand will be amajor issue if Skype wants to succeed in disrupting incumbents.
  • Several Middle Eastern countries had blocked VoIP traffic, including Oman, Qatar, and UnitedArab Emirates.Other countries, including Panama, had made special provisions to tax VoIP calls.20In late 2005, China Telecom was experimenting with systems to block PC-to-PC calling in majorurban centers.21 Likewise, Skype had been blocked by the leading Mexican telecommunicationscarrier, Telmex.22 In the U.S., a rural telecommunications carrier was fined in March 2005 by theFederal Communications Commission for blocking VoIP calls.23In what seems to be a blast from the pastthe Indian Government has once again set it’s eyes on BlackBerry maker RIM’s services for security reasons.  What’s more is that this time it has pulled in Skype and Google too. The DoT has said that it will approach the companies and ask them to ensure that data transferred through their services is available to Indian Security Agencies. While RIM and Skype will be given a 15-day deadline to comply, Google will also be contacted to ensure that Gmail follows suit. They have not been given 
  • Ebiz skype

    1. 1. Deep Dive into VoIP Industry 1 Group 3
    2. 2. A long time ago…March 10th 1876“Mr. Watson - come here - I want to see you.” -Alexander Graham Bell made the first telephone call to his assistant Thomas Watson 2
    3. 3. Evolution… 3
    4. 4. IntroductionFounded in „03 by Swedish entrepreneur Niklas Zennstrom & the Dane Janus FriisSoftware developed by Estonian developers who were initially part of P2P filesharing software KaZaAOffers Free, Unlimited, Superior Quality of Worldwide Calling via NextGeneration Peer-to-Peer SoftwareRevenue for 1st half of 2010 - $406.2 millionOne of the biggest P2P success stories in the web 2.0 eraSkype is expected to be valued at $3 billion by the time it plans to launch its IPO 4
    5. 5. The Skype story Nov 2009: eBay sells 70% stake in Skype Jan 2008: Skype available in smartphones March 2007: Paypal integration into Skype client April 2006: > 100 million usersOct 2010: New Skype for windows; with Dec 2005: facebook news and Video Phonebook telephony launched Oct 2005: eBay purchased July 2004: Skype SkypeIN, SkypeOUT , voicemail Aug 2003: launched Domain name registered, s/wSept 2002: Initial releasedVC investment in Skype 5
    6. 6. User BaseSource: http://www.businessinsider.com/skype-files-for-ipo-2010-8 6
    7. 7. Product Offering…SkypeOut Place calls from PCs to any regular telephone Charges as per call duration Flat rate subscriptionsSkypeIn Receive calls on PCs from regular phone subscribers 12-month subscription facility 7
    8. 8. Product OfferingSkype for Business Corporate use of Skype services Business Control Panel (BCP) Allocate credit to employees & monitor use Skype for SIP & Skype for Asterisk Connects VoIP based phone to Skype network 8
    9. 9. Key strategies…Low variable costs No need of a large number of centralized servers Users provided for bandwidth using their own internet connections‘NO’ to overkill of advertisements Lessons learnt from KaZaA Viral marketing is the „in‟ thingThe long tail Target end-to-end of the web by making its software available free on its website 35% of the business is generated from SMBs 9
    10. 10. Key StrategiesSummitCircle.com Focuses on Skype Phones and Add - Ons 150 products & communities New Capabilities for VoIP App One step ahead of Skype beta testing Create an ecosystem similar to Apple‟s iPhone 10
    11. 11. Key strategiesSkype Extras Skype Developer Program Skype Certified Third Party Applications made available in Skype Shop Skype Credit as payment Third party developers working on hardware and software compatible for Skype 11
    12. 12. 12
    13. 13. How does Skypework? 13
    14. 14. 14
    15. 15. Business Model Partnership Acquirers Telco Carriers Relationship Technology developers Capabilities Community Large user base Create Value added service Handle CC transactionsConnect to Telephone network Channel Value Viral marketing Proposition Skype Website Free Skype Accessory partners Activities VAS Skype Out Software development Grow user base Business Development Customers Private users global Cost Structure Developers Salaries Revenue Structure Success VAS subscription Administration cost Skype out payments 15
    16. 16. ‘Free by itself is not a business model. But free coupled with a compelling upgrade path to paid services, is!!’
    17. 17. Distribution Channels
    18. 18. Competitors 18
    19. 19. VoIP services to Consumers & Small BusinessCategories Competitors Advantage over SkypePC-to-PC • Standalone SIP-Based VoIP • Much smaller than Skype wrtPC-to-Phone Providers Total UsersProviders (SIPphone, Deltathree’s • Savings on Long Distance iConnectHere, Net2Phone) Phone Calls • IM Services (AOL’s AIM, MSN Messenger, Yahoo! Messenger)VoIP Services • StandAlone Players • Substitutes for Regular Fixed- (Vonage) Line Telephony • Cable System Operators • Cost Advantage (Comcast, Cox) • Cox: • Telecom Carriers Already owned networks (Verizon, AT&T) End-to-End Managed Networks Packets tagged for Priority Transmission 19
    20. 20. Distinguishing Factors of VoIP ServicesInterconnected calls to PSTNSent traffic over Public Internet Savings on Long Distance Calls Transmission Quality not reliable Delays garbled the conversationSolution Private “managed” network carrying IP traffic along protected paths 20
    21. 21. VoIP Market PositioningTechnology Providers Service Providers Wholesale Carriers• Wholesale Carriers • PC-to-PC • Service Providers• Enterprises • PC-to-Phone• Supplying endpoints • Hosted flat-free• Communication & • Calling Cards Application Servers • Number Portability Services • iBasis, ITXC, Genu• Switches, Routers, Signaling ity Points & Gateways • Net2Phone , 8 X 8, Dialpad, Iscom, Vonage, TalkingNets,• 3Com, Cisco, Lucent, Sieme Skype, ICQ ns, Nortel 21
    22. 22. VoIP : Critical Factors • No of usersNetwork Bandwidth • Average Call length • Average Call volume Network Visibility • Applications using network • Latency Performance • Jitter • Packet loss • Timely response Customer service • Proper account credit 22
    23. 23. VoIP : Critical Factors Regulations • Countries have different telecommunication laws Security Issues • Use NAT • CLEC and unregulated service providersNotify Customers • Notify customers of limitations 23
    24. 24. Industry Drivers Customer Service Cost reduction satisfaction efficiency• Reduction in • Service • Voice quality phone costs connection time • Security level• Reduction in • Network bandwidth costs problems resolution 24
    25. 25. Hope for New EntrantsFacilities based competition • Construct network using own facilities • Install newest, most efficient technologyUnbundled network elements • Own parts of network, eg. Local loopMulti-level Precedence and Pre-emption (MLPP) • Offer assured services 25
    26. 26. Hope for New EntrantsAppease Governments • Pay service tax, share revenue • Follow regulations 26
    27. 27. Challenges…Technology related: Skype‟s signaling protocols are closed and proprietary. Its code has never been exposed to open source scrutiny Initial reluctance to adopt the open SIP protocol, a standard in the VoIP industry P2P architecture puts a huge burden on users without NAT, consuming network bandwidth even when idle Automatic designation of Skype „supernodes‟ can saturate high speed networks  University site bans 27
    28. 28. Challenges…Service related: Sound and video quality are not consistently good Remote routing and low bandwidth often led to time lags, dropouts and „fizz‟ Poor Customer support for premium commercial services Troubleshooting solely depended on customer feedback resulting in impractical workarounds 28
    29. 29. Challenges Privacy & Security relatedLack of peer review prohibits external security code verificationSkype creates a file called 1.com in the temp directory which iscapable of reading all BIOS data from a PC. It is used in theidentification of computersBy default, Skype also records data about calls (but not themessage contents) in a "History" file saved on the userscomputer 29
    30. 30. Challenges VoIP Regulations China Qatar Mexico Oman UAE USA India Panama USATraditional international long distance calls is a major source of tax and foreign exchange 30
    31. 31. Worst FearsComing under the purview of FCC and adhering totraditional telephony regulationMeet obligations to support law enforcement agenciesWiretapping needsEmergency servicesContribute to the Universal Service FundPay access fees to ILECs @ 0.5cent/minute 31
    32. 32. THE Tech Dailywww.thetechdaily.spj THE WORLD’S FAVOURITE NEWSPAPER - Since 1901 United Nations High Commissioner for Refugees Partners with Skype(Dec 2010)KDDI and Skype Partner to bring a New Communications Experience toJapanese Consumers (Oct 2010) The New Skype brings people together like never before (Oct 2010)
    33. 33. Skype + eBay = Disruptive Technology?Sept 2005 – eBay acquired Skype for $2.6 billion Ease of communication Pay-per-call International expansionNov 2009 – eBay sold 70% stake of Skype for $2.025 billion Buyers: Marc Andreesen‟s group, Silver Lake, Joltid ltd Lack of synergies between Skype and eBay‟s e-commerce and online payment business 33
    34. 34. How is Skype a Web 2.0? Software above the Get better with more The Long Tail level of a single users device• Captured the • Skype did not need • Skype can operate Consumer and a large number of everywhere from Small Business centralized servers. the Groups by offering Users provided Internet, mobile free Worldwide bandwidth for the devices and calls from PC-to-PC calls through their Televisions own internet connections 34
    35. 35. Our Take…Skype can develop enterprise focused business to compete withcompanies like Cisco & others using its own technology Desktop Sharing Video Client Conferencing communication B2B-B2C 35
    36. 36. Our Take…Skype can provide Bundled Services such as cable television andinternet access to compete directly with companies like Vonage Partnership with Cable TV providers Tie Up with Internet Service providers 36
    37. 37. Our TakeMobility is the last anchor to the old way!The next 10 years: The Era of Rich Mobile Internet communications Multi modal communications (original SIP vision) Real time HD video, Data, Presence, Text, Wideband Audio Mash ups of web based communications 37
    38. 38. Industry ReactionsCisco with its inorganic growth strategy mightlook to go for an aggressive acquisition of SkypeGoogle is already in the VoIP segment withGoogle chat. It might look to acquire SkypeVonage and companies in the sector will try tomake its services less expensive 38
    39. 39. Thank You Arunabh Sinha Balaji Ramamurthy Jemi Verughese Johnson Chacko Rucha Khale 39