I follow several forums about Skype, for instance at LinkedIn and on eCademy. Recently I have noticed a thread on the LinkedIn Skype for Business Group asking about using Skype without a PC. While eventually I intend to have more detailed information in response to such a question in the reference content on this site, let me summarize what is available as of today. The sales channels for these products are largely through the Skype Store (which is country-specific). Unfortunately several players who had good offerings have abandoned their Skype hardware offerings over the couple of years; however, we are starting to see the emergence of new devices.

Mobile Phones

Update: March 1, 2010: Access to Skype on mobile smartphones has evolved to several platforms; there are several posts that provide an update to what is stated below:

• Skype for Mobile – Now Focusing on a True Skype User Experience includes a summary table of options, as of March 1, 2010, for running Skype on mobile smartphones.
• Skype for iPhone: Now Legally Available for Canadians

Update: May 30, 2010: Skype for iPhone now works over GSM 3G/HSPA+ networks:

• Skype for iPhone 2.0 Released: 3G Skype-to-Skype Calling to Require a Fee
• Skype for iPhone 2.0: The End User Experience
• Skype for iPhone 2.0: The Commentary and The Reality

Obviously the most popular is Skype for iPhone. With over 1 12 million downloads since its introduction in late March 2009 earlier this week, the major caveat is that you need either an iPod Touch (with a microphone accessory) or iPhone. In both cases you also need to be at a WiFi access point to take full advantage of Skype’s voice and IM features; however, you can also use Skype IM (presence and text chat) on the iPhone using a carrier’s 3G or 2G/EDGE data plan (but not voice). Currently Skype for iPhone is not available in Canada pending resolution of a patent licensing issue. Skype for iPhone does require that the application be open in order to received messages and Skype calls.

Skype Lite for Nokia has been replaced by Skype for Symbian.

Skype has also been developing Skype Lite for a wide range of Java-enabled phones, including the Nokia N- and E-series phones. Again one can use Skype IM (presence and text chat) for those phones that support a WiFi connection (such as many of the Nokia N- and E-series smartphones). But for voice, one needs a carrier for which Skype is setting up arrangements in ten countries. Skype announced earlier this week that a Skype Lite for BlackBerry will be available in May, 2009.

As mentioned in the first update post above, Skype for Windows Mobile has been withdrawn.

Skype for Windows Mobile has been available for several years, recently released version 2.5 and demonstrated the Skype for Windows Mobile 3.0 beta. They recommend its use via WiFi access points; however, its use on a Windows Mobile smartphone over 3G may have performance limitations, especially with respect to battery life.

If you are in one of the nine countries served by 3 as a carrier, you will find the Skypephone 2 available as well as a few other devices that supports Skype operation. Later this spring Skype will appear embedded into Sony Xperia X1 and new Nokia smartphones.

There are two third party solutions that I have used quite often: iSkoot (BlackBerry, several Nokia smartphones) and IM+ for Skype (BlackBerry, iPhone/iPod Touch, a few Nokia smartphones). On the BlackBerry they can take advantage of the inherent background processing to allow Skype chat sessions to remain active while executing other applications; they also require both a voice and data plan (2G or 3G GSM) in order to complete voice calls; chat sessions are supported over a WiFi connection.

There are several other third party offerings which provide Skype access, including Truphone (iPhone, BlackBerry, some Nokia models), Fring (iPhone, some Nokia) and Nimbuzz (iPhone). Suffice it to say that, while one can carry on conversations via these services while dealing with user interface, performance and/or call quality issues, the best service level is achieved from a service where Skype has full control of the software and network connections.

Skype’s strategy for mobile was recently outlined by Skype COO Scott Durchslag.

Dual Mode Phones

About two years ago several hardware vendors introduced dual mode PC-free phones that allow you to connect to both Skype via a broadband Internet connection and the PSTN. However, currently these devices are undergoing a transition as Skype restructures, the only phone that is readily available today is the Philips VOIP3211 which can be found for several countries via the Skype Store. Update, Fall 2009: The only dual mode phone that is readily available as of fall 2009 is the RTX 3088 Dualphone; feedback here. The one caveat for these phones is that they support voice and presence but have no chat capability.

IPEVO also offers their Skype Desktop Phone S0-10, which only provides Skype calling over an Ethernet connection into a router.

Skype Video Phone

I recently received an evaluation ASUS Eee Videophone AirGuru SV1, which provides support for both Skype voice and Skype video calling along with presence information (no chat). My few conversations with it have been quite satisfactory and the user interface provides easy setup of calls. Basically all operations are done via a five-way trackball where you have up/down/right/left to navigate and a central push button to perform an action. While it is basically a video speakerphone, there are headphone jacks on the rear.

To get started you simply plug it into an Ethernet port on a router or switch with a minimum broadband Internet service and enter the setup routine to provide your Skype account information. Optionally it also supports WiFi access if you are not attached via an Ethernet connection.

WiFi Phones

These are again available via the Skype Store with models provided by Netgear and Belkin that support voice and presence. I have never been a fan of the Skype WiFi phones, especially from a price/performance perspective, as they have very limited functionality and have found them to have battery life issues amongst other problems. But some people seem to like them. More recently IPEVO has offered their WiFi Phone for Skype S0-20.

Others

Skype can be found on the Nokia N800 and N810 N900 small tablet handsets; Sony Mylo and some Sony PSP models. However, these are examples of embedding Skype into a device as part of Skype’s “Skype Everywhere” strategy where conversations become one more feature of a specialty device.

Conclusion

“Skype without a Computer” is inherent in Skype’s new “Skype Everywhere” strategy recently outlined by the new Skype executive team. With the current restructuring of Skype where more mature business processes are being introduced to incorporate product marketing, build partnerships and spread the availability of Skype across many platforms, we can expect to see new “PC-free” Skype hardware coming out in the future. In their visioning statements, beyond mobile devices, they point out that we may see it attached to TV sets, automotive dashboards and embedded into other hardware.

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• Skype for iPhone: What’s the point? (news.cnet.com)
• Skype is Coming to the iPhone. For Real. (mashable.com)

Yesterday Om put up a GigaOm post, Skype on iPhone to be released as early as next week. While it’s still an unconfirmed “exclusive” rumor (and you can safely bet the eBay PR hounds are looking for any leak source if this is a leak), it does raise the issue of what we should expect the Skype experience to be if Skype for iPhone is released (even as a beta). It also raises the question of what is happening with the overall Skype on Mobile strategy outlined earlier this year by Skype COO Scott Durchslag in a blog post.

What I can confirm is that at the CES press conference back in January, Skype COO Scott Durchslag did say in an interview that Skype was looking to have Skype for iPhone at some future unannounced date. And I did meet the Skype for iPhone product manager at Skype’s CES 2009 reception; he was relieved that he could now at least give out his title, if not details. At the same CES press conference, Skype demonstrated calls made using its Java-based Skype Lite which has been in various forms of beta since last spring.

We’ve seen several attempts at accessing Skype on an iPhone(Truphone, Nimbuzz, Fring). I have also been using iSkoot on the BlackBerry (and at times Nokia N-series) smartphones as well as IM+ for Skype on various devices. Recently I have been able to check out the Skype IM feature of Skype Lite. Using and trialing these services have provided lots of details about feature set requirements for a fully-featured Skype user experience. As a result I have established some criteria for an acceptable “Skype on Mobile” experience.

1. Skype Contacts: bring up a user’s complete list of Skype contacts (regardless of number of contacts); be able to find a contact by typing in the first few letters of a name, see the appropriate real time presence information; launch a Skype chat session or Skype voice call.
2. User interface: I want to look at my Skype contacts, with presence information, and be able to hit the “green” call button on the device to initiate a call to a Skype contact. Hit the red “end call” button to terminate a call. (iSkoot on BlackBerry does this.)
3. Chat messages: I want the device to be able to monitor my Skype IM activity in background, notify me of activity and bring it up at my convenience. (iSkoot on BlackBerry does this.) I also want Skype Public Chat threads maintained as a single session; Nimbuzz treats each participant in a Public Chat as separate “contact” sessions.
4. Receiving calls; I want to be able to receive Skype calls whether I am in the “Skype-enabled” application or using another smartphone application. Receiving calls on the BlackBerry or Nokia smartphone is an option with iSkoot; with any iPhone application you must be in the application to receive a Skype call.
5. Native address book integration: I want to be able to find a contact in the device’s native address book and be able to make a SkypeOut call to a selected Home/Business/Mobile/Other phone number. Truphone has always been diligent about including native address book access; iSkoot also provides this in its more recent releases.
6. Mood message update: while not critical, it is definitely desirable to be consistent with a fully featured Skype service.
7. Battery life management: I want to have minimal battery use; iSkoot demonstrates that handling all the chat and call signaling activity can drain a battery quite quickly, especially if on a WiFi connection. Using BlackBerry’s “push” API’s is one means of addressing this issue. Battery lifetime will be even more important on any potential iPhone application; battery management, including lifetime, has been one of iPhone’s weaker points.
8. Call quality. While certainly limited by the mobile networks’ and smartphones’ inherent audio bandwidth, issues such as echo cancellation and call break-up have arisen with some services. Once again this has not been an issue on iSkoot for BlackBerry calls; however, I have found these issues to occur on calls to Skype contacts via Fring and Truphone on the iPhone.
9. Network quality: I have yet to have a good 3G network experience with AT&T; I have mentioned this in the past during recent trips to California and Nevada. Om has written about it to the point where he switched to using a 8900 Curve on T-Mobile after giving up on Bold and iPhone on AT&T. My vacation location this week only has AT&T 2G service available and, even then, it is minimal reliability. (T-Mobile 2G definitely has “more bars” here.) My only recommendation here can be, if you wish great 3G reliability and reception on a BlackBerry Bold or iPhone, move to Canada and use Rogers where 3G network availability and quality has never been an issue for me.

Here is my current Skype access on mobile situation:

• iSkoot provides excellent call quality as well as chat sessions in background (including content from sessions over the previous day or two). iSkoot’s major technical downside relates to battery drain, an issue that is correctable via newer “push” API’s. Costs will vary by my smartphone location:
  • Within the Toronto local calling area: no charge for voice or data.
  • Within Canada: long distance charges (~$0.25/minute) for voice; no charge for data. It’s still cost effective to use iSkoot.
  • Outside Canada: roaming charges ($0.95/minute in U.S.; much more in Europe) plus long distance charges make iSkoot a very expensive service. Only Skype services on 3 have partially addressed this issue in all the countries served by 3.
• Truphone’s Skype access:
  • Voice: Truphone for iPhone provides unacceptable Skype call quality (serious echo cancellation issues) but can complete calls to Skype contacts over a WiFi access point. The Truphone client must be open to receive Skype voice calls. Truphone Anywhere, which requires access to the carrier’s network for voice, has the same cost considerations as listed for iSkoot above. (To give due credit, a Truphone call over WiFi this afternoon directly to one of my iPhone contacts did not have echo issues.)
  • Chat: The Truphone client can only support IM chat sessions when the Truphone client is open. The content seen comprises only those messages exchanged while in the “current” chat session; all chat sessions are closed when you leave the Truphone application; previous content is not recallable.
• Skype for Mobile (aka Skype Lite) on Nokia E71:
  • As making Skype voice calls is reliant on having carrier relationships, I can only access Skype chat activity via WiFi; in this case previous Skype chat sessions can be recalled. Skype has announced they are working with carriers in ten named countries but no other details have been provided.

While I would expect any Skype on iPhone offering would use the “Skype Lite”/iSkoot /Truphone Anywhere architecture involving use of the data channel for chat and call signaling but the inherent carrier voice channel for voice, recall that Skype Lite is basically a Java application that has been in beta for some time whereas iPhone on Skype would require a relatively new and yet-to-be-beta-tested Apple OS/X application. On the other hand, iPhone 3.0 will address some of these issues.

Bottom line – there are many issues to be addressed to have Skype on the iPhone  maintain Skype’s reputation for providing an easy-to-use, reliable, scalable consumer service. While I won’t totally discount the rumors of Skype on iPhone, my prediction for what Skype may announce next week at CTIA Wireless: carrier agreements related to using Skype Lite:

• First announced last April (as Skype for Mobile), Skype Lite is at the point where Skype needs to announce some carrier agreements to demonstrate that Skype Lite actually has carrier adoption.
• Carrier adoption is critical to the business model for generating revenue from Skype Lite.
• It would be consistent with the Skype for Mobile strategy about which Scott Durchslag blogged during the Mobile World Conference in February.
• This is a major international conference where wireless carriers and vendors do business.

We’ll be looking forward to seeing what announcements do come out next week.

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• Skype to Storm the iPhone (markevanstech.com)
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• Bold Twittering: When is a SmartPhone Truly a Mobile Microcomputer? (voiceontheweb.biz)
• Skype Coming for the iPhone? Little Birdie Says Yes (jkontherun.com)
• Truphone Guns For The All-in-one iPhone App – Adds Skype, Twitter And Other IM (uk.techcrunch.com)
• Skype me! – Truphone adds Skype to iPhone (textually.org)

At this year’s CES 2009 Skype press conference, COO Scott Durchslag provided an overview of Skype Everywhere (or Skype Wherever Whenever). Basically Skype is looking to become installed wherever there is a communications device with embedded intelligence (processor and memory) and an Internet connection capability. Along with the announcement yesterday of the new Skype – Nokia partnership, Scott put up a post on the Share Skype Blog that outlines the three components of Skype’s strategy for mobile devices:

• Current users: Make Skype available for consumers to download onto their existing mobile handsets. Skype Lite is architected for incorporation into any of over 100 Java-enabled handsets, including any supporting Google Android. In discussing Skype for Windows Mobile, Scott mentions that SMS messaging and File Transfer are being integrated into the forthcoming Skype for Windows Mobile 3.0.
• Smartphone manufacturers: Develop partnerships with smartphone manufacturers “tightly integrate and pre-install Skype on their devices”. Skypephone and INQ are two existing examples; the Skype – Nokia partnership announced earlier this week is the next step. These phones will be targeted to consumers who may never have attempted to use a computer to connect to the Internet. But it requires simplicity and a familiar algorithm in the user interface:
  • Find a number in the device’s native address book, click on the green “Call” button, the party is called transparently over Skype. If the call is to a Skype contact anywhere worldwide there is no additional cost; if to the PSTN, SkypeOut charges will apply at a minimum.
  • But these phones are also capable of supporting Skype IM’s presence information and chat conversations worldwide.
• Carriers: The Skyephone relationship with Hutcheson 3, using embedded iSkoot firmware, has certainly been a success. Most importantly, its “free calling” marketing campaign has certainly helped 3 acquire new users who previously would never have thought of getting such a smartphone, even if it has a limited feature set (relative to, say, iPhone, BlackBerry or Android). From the Skype Lite announcement at CES it is apparent that Skype is developing relationships with carriers in at least ten other countries, including the U.S. But details of the specific carrier relationships have yet to be announced.

Many of these services involve using the data network for Skype IM and call setup while using the robust and readily scalable GSM voice channel for voice conversations. Other issues that will provide market differentiation include:

• keyboard: QWERTY or T9? this makes a huge difference as to how much Skype IM will be used.
• display size: how readily and effectively can the device display Internet-originated content?
• battery life: will there still be enough battery life after a day of work to enjoy an evening of entertainment without a recharge?
• overall user interface: bottom line for the user experience – how readily can I get access to the services I want, using a familiar calling algorithm?

And all this leads to “What is the business model for Skype”? That will be the subject of another post.

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• Skype Integration On Handsets: Threat Or Opportunity For Mobile VoIP Startups? (techcrunch.com)
• In An Effort To Become Ubiquitous, Skype Partners with Nokia (skypejournal.com)
• Nokia to preload Skype onto handsets beginning in Q3 (mobilecrunch.com)

… your partner fails to provide an obvious path to download and install your software.

In early July last year I wrote about the launch of Dell Video Chat, based on a newly announced agreement between Dell and SightSpeed to use SightSpeed’s video services. The bottom line was that Dell Video Chat would become available on an expanding range of Dell PC’s.What follows is a story about what turns users away from Windows PC’s and why Apple is doing so well with its iMac’s and MacBooks these days.But it also has to be an embarrassment to Dell.

As background I should say that recently I have watched as two non-tech persons have started up their MacBooks for the first time. Turn it on, asks for your name and contact information, upgrades the software, takes your photograph with the built-in webcam, finds the WiFi, connects to the Internet (and finds other PC’s on your LAN). In about 20 to 30 minutes you’re up and running. No hassles, no new software to install; it just happens!. And subsequently these people do not come back to me for technical support, especially on security, operating system upgrade and new software installation issues.

This weekend I am helping an acquaintance getting transitioned to a new Dell Vostro 220 desktop PC. Due to one critical business application that only supports a Windows installation this person could not change to a Mac. In the course of starting it up I found there was a webcam embedded onto the monitor and installed the appropriate webcam software. (No, Dell did not pre-install it even though a monitor with embedded webcam was included in the initial order.) Ran a client called Dell Webcam Central. You could take photos or record video while seated in front of the monitor.

Then I noticed in the upper right hand corner an option to “Switch to video chat”. Recalling that I had written about Dell Video Chat last summer I clicked on the link. And got a dialogue box stating: “You have not installed the video chat application ‘Dell Video Chat’. Do you want to download now?” Clicked on the “Yes” button.

This took me to a Dell web page that asked for my Dell Service Tag. Entered it and ended up on  the standard page of driver downloads for the Vostro PC. Looked through the various categories (after identifying my OS as Windows XP) and could not find Dell Video Chat software anywhere. No application downloads. Nothing about it listed in a sidebar on the same page. Nada, Did a search. No luck.

So, at this point, not being sure if I had installed Dell’s webcam software properly I installed Skype on this PC and found it recognized my webcam, including its associated microphone, with no problem. Dell had failed to provide any means (let alone a user-friendly means) to download and install the Dell Video Chat software.

Sort of defeats the purpose of having this SightSpeed-Dell agreement and the associated easy access to the relevant software somehow. It actually turned out to be easier for me to download and install Skype (and have ready access to voice and/or chat conversations with the huge Skype user base).

A couple of points made in posts since my initial one about the arrangement between Dell and SightSpeed have happened since last summer:

• Skype hired Scott Durchslag as COO. In a post about CxO’s and their persoanl business networks I pointed out that both Scott and Ron Garriques, now Dell’s President of Global Consumer Group, had worked together at Motorola.
• Logitech announced it would acquire SightSpeed in late October.

Aside from Dell’s obvious quality assurance problem described above, the sceptic in me might ask:

• Did Logitech’s acquisition of SightSpeed somehow sour the Dell relationship with SightSpeed?
• If it’s all but impossible for a somewhat technically savvy person to find and install Dell Video Chat, is there any Dell Video Chat user registered out there with whom a user could have a conversation?
• Has SightSpeed been tracking any metrics on Dell Video Chat adoption?
• Is there an opportunity here for Skype to leverage a Skype executive’s previous relationship with a current Dell executive to initiate discussions about having Dell provide Skype with all its PC’s?
• Will “Skype Everywhere” include Dell PC users when they want to hold voice, chat and video conversations simply by default? “No biz dev required.”

Just wondering …..Where’s the value in a Dell partnership? It’s all about execution!

In spite of being a 14-year purchaser of Dell PC’s, it’s one more nail in the Dell/Microsoft coffin as I contemplate a transition to a MacBook for my next laptop purchase.

And, in case anyone was wondering about what Steve Jobs brought to the table at Apple: a discipline within Apple’s corporate culture that focuses on a friction-free and overwhelmingly successful user experience. In spite of Steve’s current absence that corporate culture is not going away anytime soon.

Phil’s Observations:

• Two More Reasons why SightSpeed is good for Logitech
• Why Did Skype lose the Dell account to Logitech

SightSpeed’s CEO Peter Csathy:

• Speculation About SightSpeed’s Partnership Success — “How Did They Do It?”

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Josh Silverman joined Skype as President early in the spring of 2008; since then he has been reviewing Skype’s opportunities and building a team of experienced executives who can bring to Skype the products, programs and team building expertise required to operate a business with a run rate of $600MM per year, 20% contribution margins to eBay and growing at 380,000 new account registrations per day (with “real user” growth also increasing significantly).

Summarizing the past executive appointment announcements we can clearly start to see the evolution of a business structure, along with each unit’s responsibilities:

• Operations: Product, Marketing, Customer Care, Support
• Technology: Engineering, Platform, Development Community
• Strategy: Partnerships, Strategic Alliances, Acquisitions
• Administration: Global Communications Human Resources. Finance, and Legal round out the top executive team.

During our interview at CES 2009 with Skype COO Scott Durchslag, he outlined details of his restructuring of Skype’s Operations team along two axes: product and geography under the mantra of providing “Skype Everywhere”.

Global product offerings will encompass three divisions: consumer, business and mobile, each responsible for developing products. Each of these groups will be interacting with members of CTO Daniel Berg’s technology teams to convert their technology developments into marketable global product offerings and to adapt the technology to meet product marketing needs.

• Consumer will involve the current Skype client desktop offerings along with hardware, such as Skype phones.
• Business starts with the current Skype Business Control Panel but intends to expand well beyond this starting point into a range of offerings, such as Skype for Asterisk and the recently announced IBM LotusLive developments, addressing the small-to-medium business market.
• Mobile involves current products such as Skype for Windows Mobile, Skypephone (in conjunction with iSkoot), the recently launched Skype Lite (including Skype for Android) as well as any upcoming offerings for the iPhone and BlackBerry

In addition each of these divisions will be responsible for developing appropriate customer care and support programs appropriate to market demands. For instance, the business unit will come up with ongoing support programs relevant to supporting sustainable business operations of its products’ users. Ideally these programs would follow the model of Red Hat for Linux or Digium for Asterisk and build up a network of resellers and VARS who would provide relevant and timely end user support. While Dan Berg’s technology team will be responsible for third party developer partner support, an additional challenge for the Business products group will be to assist with marketing of business applications offered by these developer partners.

While Skype veteran Stefan Oberg is heading up the Business unit, announcements re appointments to head up Consumer and Mobile are pending.

Along the geography axis is a recognition that, while the Products divisions have a global mandate, there are different market needs within different regions of the world. For instance, in many Asian market wireless carriers do not subsidize mobile phones as is the North American practice. This requires a differentiated approach to these markets with respect to how easily innovations, especially around reduced calling costs, can be introduced to these markets.

The geographical market responsibilities are:

• Americas: Don Albert becomes General Manager, Americas. Don has had North America responsibility for a couple of years and will now be responsible for both North and South America. With respect to the latter he is looking forward to building on all the Skype activity in Brazil, for instance. (And, yes, once again at CES Don was made aware we are awaiting SkypeIn and a Skype Store for Canada)
• Europe, Middle East, Africa (EMEA): appointment pending
• Asia/Pacific: Yesterday we saw an announcement of the appointment of Dan Neary as General Manager, Skype Asia Pacific. One of Dan’s initial responsibilities will be to build and monitor closer relationships with partners such as TOMSkype to avoid embarrassments such as that created by the TOM Skype privacy breach we have reported on last fall.

Outstanding executive appointments are expected shortly; at this point it’s becoming all about execution. The next six months will tell the story.

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During our conversations with Skype COO Scott Durchslag last week at CES, Scott outlined Skype’s criteria for its software development going forward.

First was the emphasis on “liquid communications” through statements such as “Skype Whenever, Wherever”. Just as today you can pick up any PC or mobile platform and find all the Google Tools (Search, Maps, News, Reader, etc.) Skype wants to be on virtually any platform or device.

Pick up a smartphone, find the Skype button. Turn on the TV, find a Skype button, have a conversation. Open a web browser; start a Skype session. All this to complement Skype on the desktop. Today, besides on the desktop, you can find Skype on over 200 mobile phone handsets, several (Sony) mobile devices, Skypephone and Apple TV. But Scott emphasized, this is only the beginning. It will only start to get real when we see Skype on higher profile devices such as the iPhone and BlackBerry or when we start to see Skype seriously back into the hardware device business with vendors such as Philips and iPevo.

Then Scott outlined four benchmark criteria that every implementation of a Skype on any platform or device must meet:

• High call quality
• Simple and easy user interface
• Consideration for battery life
• Security

Last week’s hotfix upgrade of Skype for Windows 4 beta 3 included the first implementation of Skype’s three year effort to develop the SILK codec, increasing the audio bandwidth to 12 KHz while effectively reducing the Internet bandwidth consumed during a Skype call.

A key reason for Skype’s rapid and widespread adoption has been associated with its ease-of-use. Yet Scott says the Skype conversation user experience needs to be even easier to encourage adoption by a broader user base. Developing a more effective user interface has certainly been a focus of the Skype for Windows 4 beta program. At the Skype CES press conference Scott reported that, in a recent survey of users, 88% preferred the new UI to the previous Skype for Windows 3.8. But I’m still wondering if the Skype for Windows team could take a look at Skype for Mac and implement a “drawer” type interface to manage and select the active conversation. For the longer term evolution of Skype clients hopefully Skype also has a look at Dan York’s post on Skype’s fragmented product strategy.

Battery life on smartphones was a key issue that prevented Truphone, who uses a native VoIP client for calls over WiFi, from launching a native VoIP smartphone client running over 3G networks. Instead they launched Truphone Anywhere that takes advantage of the underlying network 3G GSM voice channel and uses the data channel to set up a call via a server that, in turn, sets up a VoIP client. That voice channel tends to make much less use of the device battery than a constantly compressing/decompressing VoIP client that devours the underlying processor activity. Addressing the battery life issue is a major reason why we see Skype using a similar calling architecture when launching the Skype Lite Java client on over 100 Java-enabled cell phones, including those based on Google Android.

Security is an issue that I’ll leave to Dan York and others who are able to cover this issue more knowledgeably and effectively. Suffice it to say that we would expect security to continue to be a feature of all Skype products, including those that use the mobile voice channel for placing calls from mobile phones.

Two take-aways from these statements:

• Fundamentally we should expect Skype, going forward, to be a provider of real time conversation-enabling software on desktop, web, TV and mobile platforms. To use an old telegraphy term: Full Stop! For instance, rather than developing their own social network, we should expect Skype to seek out agreements with other social network service providers, such as the MySpace agreement. Skype is an enabler of real time conversations; it is not in the community building or social networking business. Facebook, Twitter and MySpace, amongst others have already captured that space and done an excellent job at it.
• These benchmarks also provide a basis not only for deciding what product offerings Skype will develop but also when they are in a position to release a product.

The new Skype executive team is finally starting to set some benchmarks and guidelines against which we can not only measure executed performance but also have a better understanding of where Skype wants to go.

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There’s a “new sheriff in town” when it come to running Skype; CES 2009 was a “coming out” event for the new executive team.

CES 2009 provided an opportunity to catch up personally with many of the vendors we have covered in Skype Journal including Skype, Truphone, SlingMedia, Philips and Research in Motion (BlackBerry). I also had a chance to attend a most informative afternoon session of Jeff Pulver’s Social Media Jungle event. Unfortunately Palm closed their suite after only two days of CES; thus, I missed an opportunity to learn more about the Palm Pre on Saturday. As Palm had just been awarded a CES “Best of Show” award, that was a “Huh?” moment when there was only a security guard at the suite’s door.. I also wanted to catch iPevo and Nokia but did not have time to get to their booths.

With respect to Skype we had three activities: the Skype press conference, an interview with new COO Scott Durchslag and Skype’s first reception event Friday evening. It was our first opportunity to observe the new Skype executive team in action. While I will be providing some more detailed posts, here are a few observations:

• For the first time, a senior C-level Skype executive personally acknowledged Skype Journal’s participation as a playing a significant role in the Skype ecosystem. Scott thanked us for our loyalty to Skype through all the challenges of the past two years. (That does not mean we’ll always be cheerleaders; it’s important that we maintain a skeptical and critical viewpoint within the context of the overall IP-based communications space.)

While we have had co-operation in the past,  usually via Skype’s public relations agency, from many Skype employees at an operating level, it’s important for the media to be able to communicate regularly and openly with those at the C-level who are providing overall direction and developing high level strategy. Josh has initiated such openness through his blogging and interviews; now we are seeing it on a person-to-person basis..

• On the other hand many times, last week in both the press conference and our discussions, Scott acknowledged the existence of several previous controversial issues, such as technical support, platform development, the role of partners and internal management structure issues as requiring attention by the new management team. The newly recruited management team will be introducing a new level of experience and maturity to address these issues; execution over the next few months now becomes critical.
• One future post will cover Skype’s new operating and management structure focused on products and geographical markets.
• Another will cover Skype’s overall focus as a software platform developer and the standards being set for these developments. Within this context I’ll provide my perspective on what is meant by “liquid communications”.
• We’ll soon have a follow up post about our discussion with Scott of what Skype’s new executive team learned from the TOM-Skype privacy breach last fall and how it became a bonding exercise within Skype as well as establishing some new operating parameters to avoid a repeat.
• Skype is NOT shoving its partners under the bus. The new executive team is determining what innovation Skype will drive and what innovation they can expect partners to drive. Andy Abramson articulates his perspective on the issue:

Most of all, Skype is not sitting back. The are pushing the envelope, but at the same time sending mixed messages externally to partners and developers. But that too will change. Some recent hires have brought maturity to the table.

• We learned the answer to “Will There Be a Skype Client on the iPhone?”
• Finally, for the first time since I have been writing about Skype, we can see some well-articulated high level vision for where Skype is heading, where they need to focus and how they want to play in the real time communications market space at a strategic level.

Looking forward to writing about the evolution of Skype as it grows from a $500MM per year operation with 500 employees into a business with a revenue level and valuation that finally justifies eBay’s initial investment in Skype.

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At a Skype’s CES 2009 press conference today recently appointed COO Scott Durchslag provided the first hints of a vision statement for Skype under its new executive team along with some initial software offerings that hint at the direction Skype is taking towards “liquid communications” or “Skype Whenever, Wherever”.

In leading up to the new software announcements, Scott made a few points about Skype’s recent accomplishments and focus going forward:

• Skype now delivers 8% of the world’s telecom minutes through clients that now support 28 languages
• New software will drive a liquid experience on the desktop, web, TV and mobile devices
• A key goal is to liberate the Skype experience from a captive device (desktop) to more user aware devices (mobile, TV as well as embedded into appliances)
• 41% of Skype calls on Christmas day involved video, only to be surpassed at 47% on New Years day.
• New software offerings have to pass a bar of four basic criteria:
  • high call quality
  • super simple user interface
  • sensitivity to power management issues
  • security

He then went on to talk about new software offerings:

• New desktop clients: Skype for Mac 2.8 (launched as beta at Mac World Monday), Skype for Windows 4.0 (with a February release date)
• Release of Skype Lite, a thin client  for Java-enabled mobile phones with Skype for Android to be available within a few days on Android Market on T-Mobile’s G1^TM and Skype Lite general availability in the U.S. (in addition to several countries previously announced) resulting in Skype availability on over 100 mobile smartphones.
• Internally developed new Skype “SILK” audio codec which is twice as efficient with respect to bandwidth requirements for the audio and video experience.
• Skype for Mobile Internet Devices with a demonstration on a couple of MID platforms.
• Skype for Mac 3.0 to be available by year end with the feature set of Skype 4.0 for Windows.

This afternoon Phil and I spent an hour with Scott discussing the restructuring, support issues, the TOM Skype Breach and how Skype will work with its developer partners to provide a win-win direction for the development and marketing of partner applications. These topics will be the subject of future posts over the next week.

First impression: it’s the first event where a senior Skype executive has provided in a public forum an outline of its vision, guidelines for achieving that vision and how it wants to work in the real time communication and IP-based conversation space. The real challenge now lies in the execution.

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Over the past couple of weeks, during which I have taken a vacation and then dealt with an internal network issue at my home office, there has been no holiday on news related to the IP Communications space. So this week I will offer a series of posts talking about communications from Skype’s new executive team, about building strong partnerships in an IP-based communications space, about the role of API’s and finally about our mobile-enabled world. Each of the players I reference will have a significant impact on how the world of IP-based communications and real time conversations will evolve. Let’s, however, start with Skype.

Towards the end of June, Skype announced the appointment of Scott Durchslag as Chief Operating Officer, responsible for the day-to-day execution of Skype’s offerings and programs. COO’s are usually not in themselves corporate visionaries but latch on to a vision and ensure that it can be executed to bring a “delightful user experience” while building a profitable business. RIM’s COO for Blackberry, Don Morrison, is an excellent example here¹. While RIM co-CEO Jim Balsille sets the business strategy and co-CEO Mike Lazardis builds technology strategy based on his early vision for wireless devices going back to 1992, Don is a seasoned telecom executive who is responsible for building and managing a customer-driven organization worldwide, including the distribution partnerships, carrier relationships, ISV programs and enterprise support programs that have contributed to RIM’s ongoing success. (Full disclosure, Don and I are graduates of the same business school.) RIM also has a COO for Administration and Operations, Dennis Kavelman, responsible for the operations side of RIM’s manufacturing and customer information infrastructure services. While critical to the success of RIM, neither of these COO’s is in the prime spotlight when it comes to discussions about RIM but they are mission critical to making things happen. All this to set the expectations of the role that new Skype COO, Scott Durchslag, is expected to play in ensuring that Skype executes for success.

Scott was recently interviewed by Harold Wolinsky on what message he has for current customers and what got him excited enough to want to join Skype in this role:

• The remarkable team at Skype and what they have developed to date
• The current climate where not only global warming but also rising gas prices are causing us to rethink when we have to travel and how we communicate with both our friends and our business colleagues
• The paradigm shift in communications from hardware to software. “Software owns the future in communications”. (Thus, my forthcoming post about the API discussions raging on the blogosphere.)
• The untapped revenue potential where Skype currently is running at a (profitable) $500 million annual run rate in a multi-trillion dollar market space.

His message for the developer community (in an era where both Apple and RIM have set new, but different, business models for delivering third party applications to the consumer and enterprise respectively):

If there is one thing I have learned about developers from my experience in mobile, it’s that they are at the absolute cutting edge of what can be done. Some of things we never think of are invented by some young developer trying to create cool things for himself and his friends. You really want to be able to make it as easy as possible and as economically rewarding as possible for those folks to be innovating around your product.

The interview goes on to discuss his message for Skype employees and where Skype goes next. Read it for the details.

At this point, Scott’s challenge amounts to demonstrating execution — not only through innovation in software but also in structuring and executing on compelling partner programs that drive third party innovation as well as delivering more effective support programs that “delight the user”. But the most crying need is to create broader market awareness of the potential for IP-based communications through integrating the rollout of the innovative software technology with more effective marketing practices. Communicating effectively to Skype’s user base and target audience along with rebuilding once again the viral enthusiasm that lead to Skype’s initial market acceptance and deployment have to be the key goals here. Individually each of these goals is a challenge but also Scott will be measured by how well he can coordinate these activities such that Skype breaks down the disconnects that have occurred in the past between engineering, marketing and business development. Scott may have had success at Motorola with the RAZR (but where Motorola did not invest in future development); the question today is can he bring his experience at Motorola and elsewhere to build Skype’s ongoing, sustainable success?

And the bottom line for both Josh and Skype will be whether they can build enough value into Skype over the next twelve to eighteen months to either make Skype either a major profitable eBay business unit or an attractive acquisition by a third party at a reasonable profit relative to eBay’s past investments in Skype.

¹RIM Executive Team Bios

Since 1996 I have been involved in buying Dell laptops and desktop PC’s, not only for my own use but also helping friends and non-profits acquire PC’s for their personal and business needs. A constant throughout most of that period was that each of these PC’s came with a digital media offering called Musicmatch. Not only an audio player, Musicmatch’s client could also “rip” CD’s and assist in managing your media library. In fact, I even bought a couple of upgrades to their premium service over the years. MusicMatch, Inc. was led by current SightSpeed CEO Peter Csathy. From his SightSpeed bio:

Csathy previously served as president and COO of Musicmatch, Inc., where he was responsible for driving the company’s distribution and content strategies, managing strategic partnerships, and overseeing the company’s business development, sales, legal and finance activities. Yahoo! acquired Musicmatch in 2004.

Aside from selling Musicmatch into what has become the Yahoo black hole of services at an opportune time when Apple’s iPod and iTunes offerings were resetting the business model for music acquisition and playing, Peter developed a network of contacts, business relationship experience and trust at Dell such that coming back to Dell for a SightSpeed partnership with Dell Video Chat was probably “a natural” on both Dell’s and SightSpeed’s part. Getting technology to market is not simply about the technology; it’s about developing trusted business partnerships and executing across the network. Terms and Conditions of this new agreement probably reflect on their previous business experience as much as on the boiler plate lawyers wanted to include. CxO’s are hired not only for their management experience but also for the network of contacts they can bring to the table.

While Phil makes some excellent points about why SightSpeed was able to complete a deal with Dell, I think the overriding factor in SightSpeed’s new Dell partnership is more a result of previous network contacts accompanied by business relationship experience in building a service as opposed to Skype simply “losing” a deal. The challenge for SightSpeed is now to build additional partnerships with other vendors and social networking offerings beyond these legacy relationships. The good news for end users is that there are two different conversation infrastructure offerings out there that can only build consumer awareness of what can be done to bring new real time conversation user experiences when incorporated into consumer businesses with extensive user bases.

Over at Skype we’re starting to see the evolution of Skype as a true business built on the foundation of Skype’s conversation infrastructure software. It’s not a case of just starting with Josh Silverman’s appointment as CEO but his building an experienced CxO management team that can make the operation run smoothly and avoid fiasco’s such as the loss of “0207″ numbers in London last fall. Expect to see a seasoned CMO, as effectively called for in my Primer series posts last fall, and, with the complex mix of technology now embedded in Skype as its most critical asset, a CTO at some point in the near future. This is not based on any information from within Skype; it’s the natural evolution of a maturing company now being led by a business savvy Stanford MBA CEO and a Harvard MBA COO who has taken on a much wider range of challenges and experiences in his life than your average CxO.

Ironically, as a prior relationship revealed in Howard Wolinsky’s interview with recently appointed Skype COO Scott Durchslag posted yesterday, it will be interesting to see whether Scott’s previous business relationship at Motorola with Ron Garriques — now President of Dell’s Global Consumer Group — will result in any innovative new initiatives between Skype and Dell in the future. More importantly for Skype, however, would be the wireless carrier relationships Scott had to build in helping to make the Motoroal RAZR the success that it was.

It’s the mix of leadership, management experience, marketing programs, business networks and technology assets, combined with passionate employee teams, that will make both Skype and SightSpeed winners in their respective business and market spheres.