Microsoft has bought one of the few companies in the world that is hurting Telkom – Skype – the Internet communications company that lets you talk to anybody, anywhere, for free.
Skype is a free program that you simply download onto your computer. The only thing you need is a microphone and speakers (or headset), and you can talk to people anywhere in the world – without picking up a telephone.
If you have a webcam, you can have video conversations as well.
It’s the easiest way to keep in touch with distant family and friends, and to see each other while you’re chatting. And all it costs you is bandwidth.
If you have an iPhone, iPad or iPod touch, you can download the free Skype app that lets you make and receive Skype video calls.
In 2010, Skype had 170 million connected users and more than 207 billion minutes of voice and video conversations.
Skype recently bought Qik, the mobile video software that enabled Skype to launch a new iPhone app called Qik Video Connect, which enables users to instantly share what is happening around them with friends and family through a live video call or video mail, or post a live video link to Facebook and Twitter so friends can watch the moment as it is being recorded.
Skype has been passed around from pillar to post since it was founded in Luxembourg in 2003. The company was acquired by eBay in 2005, and then by an investment group led by Silver Lake in 2009.
According to industry reports, Microsoft wasn’t the only one interested in Skype; Google and Facebook were also bidding for it.
What’s the deal?
So why does Microsoft want Skype so badly that it’s prepared to pay US$8.5 billion in cash for it?
Well, Microsoft has invested rather a lot in real-time communications across its various platforms, including Lync, Outlook, Messenger, Hotmail and Xbox LIVE.
Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and other Windows devices. In turn, Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.
From a user’s point of view: Skype works very well, thank you. Please, Microsoft, don’t tamper with it.

