I just received this email from Skype’s PR firm…
Here is Skype’s official comment regarding Skype for Asterisk. You can attribute this to Jennifer Caukin, spokeswoman for Skype.
“Skype made the decision to retire Skype for Asterisk several months ago, as we have prioritized our focus around implementing the IETF SIP standard in our Skype Connect solution. SIP enjoys the broadest support of any of the available signaling alternatives by business communications equipment vendors, including Digium. By supporting SIP in favor of alternatives, we maximize our resources and continue to reinforce our commitment to delivering Skype on key platforms where we can meet the broadest customer demand.”
Call me crazy but if I have to pay to integrate Skype into my phone system, where I already have a phone service that I am happy with, why would I do that? Maybe I just want to be able to make/receive Skype calls on my SIP-enabled desk phone? If it doesn’t hit the PSTN why do I have to pay? Seems like an odd approach for a company that has a long history of working around POTS, much to the delight of their users.
Integration with SIP is great, don’t get me wrong, but it would be nice if Skype talked SIP and was ‘still’ free. Seems like a massive oversight on behalf of Skype or am I missing something?
Imagine a new secure P2P (Skype like) offer that also supported SIP in the client. You could use the client software on it’s own (just like Skype) or attach it to just about any VoIP service or phone system for free.
Does it make sense for consumers?
Does it make sense for business users?
Is there room in the market?
Would you use it?
Martyn Davies chimes in…
I would use it, but as a telecom industry insider, I know that I’m not the average business user or consumer. As to whether there is room in the market, I think that depends a lot on what Microsoft do with Skype now that they own it. From a business point-of-view, their efforts are focused around OCS/Lync (and software licenses), so Skype there is not adding to their central proposition. Skype has a lot of users, but produces very little revenue, since the majority just use the free services. As a Skype competitor you would have the same problems getting to the cash.
Skype was really the first company to take VoIP and make it completely trivial to install and use. To do that, they had to take some liberties and deviate from standards (like SIP), so that they could add the magic that made it work from behind firewalls, add security and self-configuration, and integrate video so seamlessly. Like Facebook, once it is clearly the biggest of its kind of services, it becomes the community that everyone must join. I can’t see that another Skype-alike has a way in, unless Microsoft significantly change the rules now.
It looks like the first victim in the Microsoft acquisition of Skype is Digium and the open source PBX – Asterisk. The following is an email sent to existing Skype for Asterisk users…
Skype for Asterisk will not be available for sale or activation after July 26, 2011.
Skype for Asterisk was developed by Digium in cooperation with Skype. It includes proprietary software from Skype that allows Asterisk to join the Skype network as a native client. Skype has decided not to renew the agreement that permits us to package this proprietary software. Therefore Skype for Asterisk sales and activations will cease on July 26, 2011.
This change should not affect any existing users of Skype for Asterisk. Representatives of Skype have assured us that they will continue to support and maintain the Skype for Asterisk software for a period of two years thereafter, as specified in the agreement with Digium. We expect that users of Skype for Asterisk will be able to continue using their Asterisk systems on the Skype network until at least July 26, 2013. Skype may extend this at their discretion.
Skype for Asterisk remains for sale and activation until July 26, 2011. Please complete any purchases and activations before that date.
Thank you for your business.
Digium Product Management
One has to wonder what will become of Skype Connect, Skype’s answer to SIP Trunking. Will Microsoft shut off the Skype Connect vendors (Cisco, Avaya, Grandstream, etc.) as well?
Original forum post here.
The acquisition of Skype could have enormous implications for Microsoft. If everything works out well, Microsoft gains access to about 600 million potential users globally. What it can do with those users is up to Microsoft, but the possibilities are almost infinite.
Even without any integration or service adjustments, Skype brings close to $860 million in revenues, even though they come at a loss. With the recent service enhancements (for instance, multi-party video, enterprise voice functionality) the existing (and rapidly growing) customer base can be further monetized for revenue growth and greater profitability.
But no one expects Microsoft to pay a premium (which the $8.5 billion appears to be) to just leverage the status quo. Microsoft is likely to seek to connect businesses using its own business software and services (from Office to Outlook, Lync, SharePoint, Office 365, etc.) to all the consumers and businesses using Skype’s VoIP and collaboration services. With Microsoft’s big push into enterprise communications and collaboration with the OCS and Lync platforms, Skype nicely complements its portfolio with cloud communications capabilities – including the app, the network, DIDs, mobility, and federation with other apps and networks. Potentially, this could help Microsoft customers enhance sales and marketing reach or create new options for economic and effective collaboration between office locations and teleworkers.
Skype’s capabilities can help Microsoft re-enter the SMB voice space, which it pretty much deserted after it chose to discontinue Response Point. OCS and Lync are fairly expensive for this customer segment. Skype can also help add inexpensive VoIP alternatives for Microsoft’s cloud-based Office 365 packages.
Certainly, Microsoft can leverage this acquisition in the consumer space by linking the Skype customer base with its Windows Mobile and Xbox 360 and Kinect users or simply integrating Skype services into its gaming and mobile products. But the bigger opportunity is in bridging the consumer and business worlds. The lines between the two are blurring as the prosumer segment grows both in number of users and in terms of application and devices used for both personal and business purposes, leading to increasing consumerization of enterprise IT. Prosumers expect familiar, intuitive interfaces in their business environments and access to inexpensive communications and collaboration tools anywhere, anytime. Skype can help Microsoft deliver some of these capabilities to its business customers.
This is also a big defensive move for Microsoft – against Google as well as against the enterprise communications vendors. It is not clear how Skype’s partnerships with enterprise vendors will fare after the acquisition, but regardless of whether they survive or not, Microsoft will limit the options for others, while expanding its own. If Microsoft pushes for greater federation, this will be beneficial to everyone, both on the supply and demand side. But it will mostly help Microsoft, the new kid on the block, make friends with the existing leaders, to be able to survive and thrive. It is a little hard to believe, but it is possible that Microsoft can use Skype as the common network for all its business customers (not just those using OCS or Lync for voice) to communicate and collaborate “on-net” among each other. Imagine free calls with your suppliers, partners and customers. Of course, businesses can use Skype to do that today, but having Skype integrated into Microsoft applications is going to make the value proposition a lot more compelling. The ability to get its foot in the door with businesses using competitors’ communications systems with a service that provides clear benefits and does not require a significant capital outlay, can open tremendous opportunities for Microsoft. It will have the disruptive impact that other communications solutions and cloud-based communications services have not been able to accomplish yet.
One of the biggest questions is how Microsoft will deal with the various challenges that the merger presents. Certainly, the two cultures are very different. Also, as an Internet-based, primarily consumer service, Skype does not offer the type of SLAs businesses require. The quality of Skype communications is only as good as the available bandwidth, the quality of the access network and the processing power of the devices it’s running on. If Microsoft plans to penetrate the enterprise space with Skype communications and collaboration capabilities, it will have to make sure it only promises what it can deliver or else customer disappointment will have an irreversible negative impact on future adoption. Also, Microsoft will need to learn about managing phone numbers and handling regulatory issues related to voice services in various countries. So the bottom-line question is – with all its ambitions to leverage the cloud and to grow its real-time communications business, is Microsoft prepared to be a voice services provider?
Jazinga and Freetalk have combined efforts and the result is a Skype enabled SMB phone system called Freetalk Connect.
The press release:
FREETALK Partners With Jazinga To Create FREETALK® Connect
Companies Collaborate On Skype-enabled Small Business Communication System
Featuring Set Up In Less Than 15 Minutes
MIAMI, January 20, 2010 — As the result of a new partnership announced today at ITEXPO East 2010, FREETALK and Jazinga have created the FREETALK® Connect, a full-featured unified communications system that is the first to feature Skype for SIP and Skype for Asterisk functionality.
FREETALK and Jazinga collaborated in designing the FREETALK Connect, featuring a do-it-yourself (DIY) technology approach that can be configured in less than 15 minutes, enabling users who are not tech savvy to use it without formal training. This new class of DIY communications system allows anyone with basic knowledge of computers to install and maintain the office phone system. SIP, Skype and traditional PSTN phones can be plugged into the network, and the FREETALK Connect auto-detects and configures them. An onscreen wizard guides the user through setup. Adding users and administering the system after install is equally simple.
Further distinguishing the FREETALK Connect is its intelligent routing capabilities. Incoming Skype calls, as well as SIP, PSTN and IAX2 calls, can be routed to any local or remote Skype user, SIP, analog or mobile phone. Additionally, the FREETALK Connect enables users to set up “Find Me, Follow Me” features, and provides a unified mail box that consolidates messages from voice mail and email into one mailbox.
Some of the key features from the Jazinga platform found in the FREETALK Connect include:
Callback / Dial-around
Access to Skype Buddy lists
Auto Attendant / IVR
Music on Hold
The FREETALK Connect also has an easily configured and updated:
Managing routes to users, telephone services, and applications
Providing SIP/Skype telephone service management
Router management (networking, port forwarding, DNS, DHCP)
“Jazinga’s products consistently ensure call integrity by integrating quality of service and prioritizing voice traffic on the network into an affordable, simple product,” said In Store Solutions COO Craig Smith. “There was no question that FREETALK wanted to partner with Jazinga to develop the FREETALK Connect, because it continues our goal of working with the best providers to distribute outstanding products around the world.”
“FREETALK Connect is designed for small businesses with between 2 and 49 users, an undersold market that desperately needs UC functionality,” said Randy Busch, CEO of Jazinga Inc. “As a result of our partnership with In Store Solutions, the telecom technology playing field is much more level between larger enterprises and their smaller competitors.”
The the FREETALK Connect is marketed through Skype Shop, which is operated by In Store Solutions. The unit initially will be available to registered U.S. Skype users beginning in March.
For more information about FREETALK Connect PBX or to order a unit, visit
FREETALK is a product innovation catalyst – identifying market gaps and working with its global partners to design, manufacture and quickly bring to market products that disrupt traditional categories. Leveraging untapped market opportunities, FREETALK products are designed to be environmentally friendly, sold online and delivered globally at aggressive price-points. Always at the forefront of innovation, FREETALK is known for creating synergistic products that add unique value to its partners’ branded points-of-sale.
Jazinga Inc. develops communications products for small businesses and homes. The Jazinga system provides enterprise telephony and data functionality for this market, but at a fraction of the cost and without the setup complexity of an enterprise-class IP PBX. Jazinga Inc. is privately held and headquartered in Toronto, Canada. Additional information is available at http://www.jazinga.com.
Sue Huss, for In Store Solutions
Jazinga came to market a while back with a Asterisk appliance that is not much different than other you would find in the Asterisk market today. Skype recently announced their Skype SIP Trunking capability which is helping Skype become more open standards compliant, paving the way for deals like this one.
Since I have not tested the system myself I can only speculate that it is not huge departure from other Asterisk systems, which are not trivial to set up. Let’s hope they did their homework and come to market (March) with something that is much less technical and more end-user friendly, like Response Point.. was.
One thing that I find interesting is that it will be sold via the Skype store to US registered Skype users. If you were wondering what the connection is between Freetalk and Skype; the creators of Freetalk are also the curators of the Skype store. Ya, you heard me right. The company that created Freetalk (In Store Solutions) operates the Skype store. Which makes one wonder if there is overlapping ownership between Skype and In Store Solutions.
Something else that I find interesting, and not just because I am one of the founders of Xten/Counterpath, is how this announcement relates the recent announcement of the Asterisk/Digium softphone from Counterpath. Which may be why In Store Solutions decided not to leverage the Digium or Asterisk brand in this release, maybe they see the new Asterisk Bria softphone as a competitor in this instance?
I expect this will not be the last Asterisk-based phone system to incorporate Skype functionality this year, but it would seem as though they are the first, congrats to fellow Canadians at Jazinga.
Tom does some handy investigative work and finds out that Skype has been banned from use in Canada due to a legal issue around what seems to be a codec related patent.
I then asked if other countries were affected or if it was just Canada and was informed it was just Canada. When asked whose patent it was or what category it involved (i.e. mobile VoIP), the representative told me, “I can’t go into many more details other than it’s codec related.”
That really bites. I was hoping to do some testing via Skype for iPhone on the new Skype for SIP on Response Point.
Om broke a story this morning that rings a familiar bell for me. Over the past couple of years I have been approached by some of these incumbents that Om refers to in his story to do just what he is implying.
I can think of at least least 2 serious softphone contenders ( Truphone and Counterpath ) for this type of project that could leap frog Skype in no time. Marry that with a solid SIP application server ( Broadsoft or the like) which many, if not all, of these carriers already have in their networks, and you have a winner.
I have been waiting for this for a while. If it's real it could mean a real paradigm shift for IP communications in general. These players have been around for many years and own much of the infrastructure and vendor relationships. The incumbents still have the power to dictate what gets deployed on their networks. They have huge leverage with the vendors in terms of what gets bundled on what phones/devices.
This is exactly what the industry needs and you could be certain it wold end up on the new iPhone rather quickly.
Sadly, the telcos of old have a great deal of "old thinkers" and will likely screw this up royally with their bureaucracy and paranoia.