Microsoft Buys Skype: What does it mean for Nokia Windows Phone?

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By Martin James on May 12,

2011 at 00:00,

miIn case you missed it, yesterday saw the announcement that Microsoft has agreed to buy out VoIP giant Skype for a whopping $8.5 billion in cash. So what does it mean for Windows Phone 7 partner Nokia? Let's take a closer look.

There's no question that Microsoft snapping up Skype is as big as corporate deals get, and even though both companies have interests across a wide spectrum of consumer technologies, the deal is particularly significant for the mobile space.

On the most basic level, it obviously means getting a Skype app up and running on Windows Phone 7 will now surely be a higher priority than before. As things stood, however, the app was expected out in the autumn, so it probably wouldn't have affected Nokia's Windows Phone handsets anyway, which are only expected to appear after that.

And with Skype used by 170 million people worldwide, Microsoft would be foolish to rock the boat and start favouring one platform over another. In fact, Microsoft boss Steve Ballmer has already said directly that “we will continue to invest in Skype on non-Microsoft client platforms”.

But all the same, we have to agree with My Nokia Blog that this move can only work out well for Nokia and its forthcoming Windows Phone 7 handsets.

With Qualcomm and Nokia working together on the hardware and Skype and Microsoft on the software side all pulling in the same direction, it surely adds up to a serious recipe for smartphone success – or as My Nokia Blog puts it, “that’s NOT a juggernaut to mess with”.

Do you agree? What do you make of Microsoft's decision to buy Skype, and how do you think it affects Nokia? Let us know in the Comments!

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jamie

in a way i think its a brilliant idea but also a big loss for microsoft as A. they will never see that 8.5 billion again and B. on the news i heard that skype havnt made a single profit since it started so with the running costs of servers and staff to maintain it well all i can say is not a wise move.

fair enough microsoft can afford to loose millions a year to fund skype just look at msn but msn also has adverts so does that mean skype will have the annoying roller over adds you have to avoid when opening msn up.

microsoft slowly are creating a monopoly AGAIN they are too big of a company to fight and apple even with the same revenue coming in gross profit is smaller than microsoft.

i think apple will always be the better computers for media because of their long list of products. But saying that whats stopping microsoft buying out sony or alba ( a little make but microsoft would make them huge).

microsoft has a monopoly on working class familys because who can pay £1000 for a small laptop what has the same processing speed as a £400 wide screen ok the o.s is different but guess what who cares they both do the same just look different.
http://www.thepalacesonwheels.com/links.html Aida

Both are good. Excellent post!
Ramu

I agree on Jamie post, but we have to think MSN and Skype is having its own users. So its obvious skype could be successful more.
So its good idea, but they have to run on different platform also like as of now.
I wish to Microsoft do some new revolution in the market with Windows phone7.
Thanks!
David

Jamie I can agree with your statement. How ever I don’t think Microsoft is buying it to make a profit by itself. If they add certain functions into MS Skype that is only good on Windows phone then that will make the money for it. Sure develop MS Skype for other platforms but don’t give them all the functions. Those functions you can save for MS/Nokia windows phone. That will be the selling points for the WP devices. I don’t see MS buying Skype just to buy it. They have a hidden agenda and I bet it is going to be good. Just think, Microsoft (the creator of the first mobile device operating system), Nokia (the one phone maker that makes a very durable device), and Skype (the most widely used video voip system in the country). I am going to wait longer before I get a new mobile device.
tzar

I think the deal may have been misunderstood. The $8bn buys WP7 (and Windows an answer to FaceTime.

True, Microsoft wouldn’t won’t see the $8bn again but without out Skype (and Ovi Maps, and the other bits of kit being bought or developed), Microsoft wouldn’t have a serious contender. This deal maintains contention.
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