Skype News Roundup

A few items this week:

Cynthia Blumfield an analyst blogger at IP & Democracy, demonstrates how Skype is on the path to $200 million in revenue in 2006 when revenue per registered user increases by $0.02 per quarter for the remainder of the year. (Hat tip to Andy.)

In response to an email from one of his readers that starts out with “Why are so many people in the VoIP sphere excited by business models with negative gross margin…..”, Jon Arnold asks where is the business model with GizmoProject’s All Calls Free “offering”:; he makes a point of not calling it a plan or program. (When I was in the software business in the early 90’s, I recall that competition would be so intense amongst dealers such that many dealers would respond to large volume RFP’s with “zero margin” pricing on popular software such as MS Office suites. They made their profit on the marketing development funds [“MDF’s”] provided by the software publisher. Key here is to understand that dealers would buy from distributors but get the MDF’s from the software publisher. However, in the telecomm wholesale business, there is no up-channel “buffer” business entity paying out MDF’s.)

Janko Roettgers at P2P Blog comments on how Cringely doesn’t get Skype since he makes incorrect assumptions about the roles of supernodes and “online Skype nodes. (Cringley’s original post on Skype’s scalability: The Skype is Falling.) Janko concludes: “I don’t know how scalable Skype really is. But if it does break one day, it definitely won’t be because of overwhelmed supernodes that can’t handle all those chatty users.”

About Jim Courtney

Bringing over thirty years' experience in the sales, marketing and management of cutting edge technology businesses.

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