Latest posts by Rob the Techie (see all)
- Microsoft Links Up With Skype and Facebook: Are Telephones Dead? - July 24, 2011
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Facebook, Skype, and Microsoft have joined forces in a deal that some experts think could kill telephones. The “Triple Alliance” was formed when Microsoft acquired the British-based VOIP operator Skype in May.
Now that the U.S. Justice Department has decided that Microsoft’s ownership of Skype does not violate antitrust laws, Facebook honcho Mark Zuckerberg has announced that his page will offer Skype video calling. That means that you will now be able to see all the people who call you live on your computer screen.
That could be very frightening if people who do not use things like makeup, razors, and combs call you on a regular basis. Also frightening is the idea of answering a video call before drinking your morning coffee.
Does Microsoft Own VOIP?
It also means huge piles of cash for Microsoft, Skype, and Facebook because they now essentially own the VOIP video business. That could mean the end of the traditional landline telephone because everybody will make their home and office calls on VOIP for free.
OK, a few things will have to occur for that to actually happen. First, Facebook video calling through Bing will actually have to work. I’m sure it works fine in Mr. Zuckerberg’s office, but what about out here in the real world? Is it supposed to work off low-power wireless and low-cost broadband? I also wonder how this is supposed to work over satellite internet, which is notoriously unreliable.
A big problem here is the huge amounts of bandwidth that Skype eats up. I cannot use other programs, including Mozilla, when I try to Skype at my house. Changing broadband providers is not an option where I live because there’s only one DSL company in my small town.
Microsoft and Facebook are going to have to address the bandwidth issue if they want to get video calling over with the public.
Another issue looming in the background is Facebook’s notorious security lapses. People in Great Britain are still reeling over the News of the World scandal in which tabloid journalists hacked into cell phone providers’ networks and listened to other people’s voicemail. What is to keep somebody from hacking into Facebook and watching or downloading video calling?
What happens when Lady Gaga’s supposedly private video calls get posted on You Tube for everybody to see? Something like that could derail Skype on Facebook faster than lousy technology.
Now Microsoft – which contrary to popular belief, has excellent security capabilities – could be able to fix that. That could be one of the real reasons behind this deal: Facebook needs to plug its security holes before lots of people dump it. Microsoft has a lot of security expertise that Facebook is hoping to draw upon.
Facebook
Another interesting possibility is that Facebook is planning to enter the software business by setting up something like an App Store. Windows has lots of software and plans for an App Store in Windows 8. Facebook could be planning to market Apps and software through its portal. If that is the case, then Microsoft is the perfect partner to work with.
In addition to vast amounts of software, Microsoft still has nearly unmatched expertise in the creation of new programs. Microsoft is also facing net-based competition for Windows in the form of Google’s Chrome OS. Google is repositioning itself as a software provider.
Microsoft needs a network to sell its products through. What better network than Facebook? It might not be long before you can order Windows 8 through Facebook and download the complete operating system with all the applications you want.
It could also be possible to work on Windows applications such as Word and Excel through Facebook at some point in the future. Combine this with video calling and it would make for the ultimate virtual office. It means you would never be out of contact with the boss, which sounds pretty frightening to me.
The Google Factor
The interesting thing will be to see how Google will react to this. Google has already announced plans for a new social network called Google+. Redesigns for such Google staples as Gmail are also in the works.
The Microsoft/Facebook alliance could be the biggest news of the year because it could lead to a game changer as big as Google Chrome OS. That is, if Microsoft’s Facebook/Skype actually works. If it does not, Microsoft could lose a lot of market share to Google.
Google will now have to unveil some sort of VOIP/video service of its own just to keep media attention. There’s a good possibility Google has not done this, because it does not have a working video calling feature available. There are some big technical issues with video calling, including bandwidth and server space.
Google may not have access to the patents behind the technology. Part of the reason Microsoft bought Skype was to get its patents for Video Calling. I doubt there would be a Facebook/Microsoft alliance without them.
Some media pundits are speculating that this deal will kill off traditional telephone networks. I tend to doubt that for one reason – most people will need a network to log onto Facebook through. The logical candidates for providing those networks are phone companies which already have wires running into homes and businesses. A more likely outcome is that the phone companies will simply become broadband providers for the public.
One possible casualty of this game changer could be traditional telephone plans. Nobody will want to order home phone service if Facebook can provide it for free. That will probably mean an increase in the price of DSL because the phone companies will have to make up for the lost landline revenue.
