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Microsoft, Skype Deal Risks

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Microsoft’s acquisition of the monster sized Skype network may well boost the video conferencing industry but not without it’s casualties.

Companies like Plycom and Logitech may fall victim to this buyout as the industry could be edged out toward the downfall of the smaller companies.

It’s all about the size. Microsoft and Skype are enormous. Skype having over a billion users alone means a team up with Microsoft will surely put a cramp in the style of the other competitors. The features that Skype has and that other video conferencing software systems has is similar and the only way the smaller guys are going to compete is by offering options the others don’t.

That could possibly happen if Microsoft and Skype conquer the world here.

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Since some of these video conferencing companies rely on Microsoft, should Microsoft suddenly get all exclusive that would shut the other companies out.

However, we’ve seen in the past that upstart companies can make a major difference in the computing software industry launching multi billion dollar companies that make Microsoft envious such as Google, Twitter, and Facebook. Had Microsoft been on the ball they would have developed those programs instead of sitting in the back row.

So Microsoft and Skype are going to be huge but they shouldn’t get too big for their britches.

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