{"id":22742,"date":"2010-08-30T13:47:59","date_gmt":"2010-08-30T17:47:59","guid":{"rendered":"http:\/\/blog.voipsupply.com\/?p=22742"},"modified":"2016-06-06T18:40:09","modified_gmt":"2016-06-06T18:40:09","slug":"skype-cisco-acquisition","status":"publish","type":"post","link":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/skype-cisco-acquisition\/","title":{"rendered":"Skype Would Make Great Acquisition for Cisco"},"content":{"rendered":"<p>I love rumors. At least when they&#8217;re not about me.<\/p>\n<p>Earlier today <a href=\"http:\/\/techcrunch.com\/2010\/08\/29\/cisco-may-be-making-a-run-for-skype\/\">TechCrunch posted<\/a> that <a title=\"cisco\" href=\"\/manufacturer\/cisco\" onclick=\"ga('send', 'event', 'voip-insider-blog-post', 'click', 'Cisco');\">Cisco<\/a> is rumored to be poking around Skype. It&#8217;s unconfirmed (as most rumors are) and with <a title=\"skype\" href=\"\/skype\" onclick=\"ga('send', 'event', 'voip-insider-blog-post', 'click', 'Skype');\">Skype<\/a> pre-IPO it could simply be savvy PR work to increase the news centered around the company so that potential investors are aware of the pending offering.<\/p>\n<p>But since I love rumors, I thought I add to the fire.<\/p>\n<p>In thinking about the possibility of Cisco purchasing Skype it makes sense since there are a number of synergies between the two companies.<\/p>\n<h2><strong>Target Growth Markets<\/strong><\/h2>\n<p>Skype&#8217;s biggest revenue growth plays are in video and business (small business). This is where Cisco has been buying companies and strategically focusing for the last two years.<\/p>\n<p>Skype would get Cisco deeper into the small business (think agencies) video conferencing space ( and give them a video conferencing offering from individual to enterprise). It also gives them a low cost and suitable unified communications product which could get integrated into WebEx (free calls into WebEx via Skype or maybe a WebEx light for very small organizations) as well as call manager all powered at the desktop by Cisco handsets (which means selling more hardware).<\/p>\n<h2>Technology Dependent Customers<\/h2>\n<p>Skype has over 500m register users. That&#8217;s a nice customer list of people using the Internet.<\/p>\n<p>Since Cisco owns 85% of the worlds network, almost all of those registered users are those that &#8220;could benefit from using Cisco hardware.&#8221; This could be a Linksys wireless switch, the Cisco Valet or catalyst switches.<\/p>\n<p>And let&#8217;s not forget device such as the Flip. Imagine a wireless Flip that allowed for mobile Skype video calling.<\/p>\n<h2>Proprietary Technology<\/h2>\n<p>A lot of people bitch about Skype using proprietary technology and not actually owning it. These same people probably don&#8217;t like the fact that everything Cisco does in the voice space (SCCP) is proprietary.<\/p>\n<p>(Yes, I know they support SIP, but it&#8217;s cost prohibitive in most cases.)<\/p>\n<p>Point is that Cisco knows the proprietary game, is comfortable with it and obviously has done a great job pushing proprietary technologies into the hands of customers in a world that &#8220;demands openness.&#8221;<\/p>\n<h2>Consumer Brand<\/h2>\n<p>Cisco desperately wants to get more consumer friendly. Skype is a world wide brand that is well known by consumers (sometimes a downfall as they try to get into more businesses).<\/p>\n<p>It&#8217;s considered to be hip and cool. That&#8217;s priceless in the consumer space.<\/p>\n<p>The purchase of Skype would give them their best consumer brand name since Linksys.<\/p>\n<p>Your Thoughts?<\/p>\n<p>You&#8217;ve heard my thoughts. Now what are yours?<\/p>\n<p>(Told you I love rumors)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I love rumors. At least when they&#8217;re not about me. Earlier today TechCrunch posted that Cisco is rumored to be poking around Skype. It&#8217;s unconfirmed (as most rumors are) and with Skype pre-IPO it could simply be savvy PR work to increase the news centered around the company so that potential investors are aware of [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1217],"tags":[],"class_list":["post-22742","post","type-post","status-publish","format-standard","hentry","category-voip-news"],"_links":{"self":[{"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/posts\/22742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/comments?post=22742"}],"version-history":[{"count":3,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/posts\/22742\/revisions"}],"predecessor-version":[{"id":177183,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/posts\/22742\/revisions\/177183"}],"wp:attachment":[{"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/media?parent=22742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/categories?post=22742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.voipsupply.com\/blog\/voip-insider\/wp-json\/wp\/v2\/tags?post=22742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}