For eBay, the Skype's the limit

NETWORK WORLD NEWSLETTER: MICHAEL OSTERMAN ON MESSAGING
09/22/05
Today's focus: For eBay, the Skype's the limit

Dear networking.world@gmail.com,

In this issue:

* Analysis of eBay's proposed acquisition of Skype
* Links related to Messaging
* Featured reader resource
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Network World Technology Insider on Security
Is Encryption the Prescription?

Encryption won't solve all your security issues but these days
there is no excuse for not safeguarding your organization's
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Today's focus: For eBay, the Skype's the limit

By Michael Osterman

At first glance, eBay's proposal last week to acquire Skype
Technologies seems a little like Wal-Mart buying MCI. However,
the acquisition really does make quite a bit of sense when you
look at the future of VoIP and the potential for VoIP to help
eBay evolve and grow its business.

Here's what I see as the advantage of the acquisition
<http://www.networkworld.com/news/2005/091205-ebay-skype.html?rl>
for eBay and its impact on the broader messaging industry:

* The acquisition is another clear signal that VoIP is a truly
viable technology that all organizations should take seriously.
Companies like Vonage have been pushing hard on the VoIP message
with impressive results, but the Skype acquisition helps to
further legitimize the notion that VoIP is a real and reliable
technology.

* EBay's acquisition of Skype's technology, if done properly,
should go a long way toward making the eBay buying process
richer and easier for customers. Imagine finding three competing
items to purchase on eBay and, just before you're ready to make
a bid, you determine which seller is available in real time for
a quick VoIP conversation to ask a couple of questions. That
could give a seller a competitive advantage if his fellow
sellers aren't so enabled, and it could provide eBay with
another revenue stream. For customers, integrating presence and
voice into the buying process could go a long way toward
improving the eBay experience.

* For other businesses, the integration of VoIP can go a long
way toward improving customer service. For example, having a
VoIP link to a customer service agent when buying anything from
auto insurance to baby strollers can definitely improve the
buying experience by allowing potential customers to get quick
answers to their questions.

More broadly, however, what the acquisition of Skype points out
is the window of opportunity that organizations have to
integrate VoIP into their business processes and to have it
provide them with a competitive advantage.

For example, e-mail no longer provides a competitive advantage,
since you must have e-mail in order to do business - you can
experience only a competitive disadvantage by not having e-mail
available 24/7.

VoIP, like instant messaging and presence, can provide a company
that implements it properly with a competitive edge until
everyone else in their industry catches up. That window for VoIP
will likely last at least a couple more years, but probably not
much beyond that.

The top 5: Today's most-read stories

1. McAfee, Omniquad top anti-spyware test
<http://www.networkworld.com/nlmsg6958>

2. The rise of the IT architect
<http://www.networkworld.com/nlmsg7324>

3. Users discuss big VoIP rollout risks and rewards
<http://www.networkworld.com/nlmsg7496>

4. Cisco targets SMBs with convergence
<http://www.networkworld.com/nlmsg7497>

5. DemoFall preview <http://www.networkworld.com/nlmsg7322>

_______________________________________________________________
To contact: Michael Osterman

Michael D. Osterman is the principal of Osterman Research
<http://www.ostermanresearch.com/>, a market research firm that
helps organizations understand the markets for messaging,
directory and related products and services. He can be reached
by clicking here <mailto:michael@ostermanresearch.com>
_______________________________________________________________
This newsletter is sponsored by HP
FROM THE NETWORK CORE TO THE NETWORK EDGE

Traffic management becomes critical as your network
infrastructure expands to support different types of traffic and
users. Most traffic management solutions have serious
limitations: too expensive, difficult to use, and overly taxing
on bandwidth. However ProCurve Networking by HP addresses these
requirements, overcomes the limitations of other solutions, and
gives you valuable insight into LAN performance. Click here to
download HP's Traffic Management Whitepaper
http://www.fattail.com/redir/redirect.asp?CID=115455
_______________________________________________________________
ARCHIVE LINKS

Archive of the Messaging newsletter:
http://www.networkworld.com/newsletters/gwm/index.html
_______________________________________________________________
FEATURED READER RESOURCE

Network World Technology Insider on Security: Is Encryption the
Perspective?

Encryption won't solve all your security issues but these days
there is no excuse for not safeguarding your organization's
sensitive data. From Clear Choice product coverage to new
regulations and high-profile breaches, this Technology Insider
on Security covers it all. Click here to read now:

<http://www.networkworld.com/nlmsg7498>
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