Skype
Content
SKYPE MIS PRESENTATION
09BM8078
INTRODUCTION TO TELECOM SCENARIO
Economy, services, industry Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002 Major players and challenges Opportunities
NEW WORLD ORDER
Emerging areas New services: basic telephony, PC-tolandline/mobile/PC calls, IMs, video calls, videoconferencing, file-transfer Players: Skype, Gtalk, Jajah, Yahoo·s VoIP, Lycos, phone.com, AltiGen, Micrsoft
GOSSIP IS THE HUMAN EQUIVALENT OF 'SOCIAL GROOMING' AMONG PRIMATES
SKYPE INTRODUCTION
Software that enables the world's conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Everyday, people also use Skype to make low-cost calls to landlines and mobiles
SKYPE IS A COMMUNICATIONS TOOL
Humans are really, really, interested in things that help us communicate with each other more and better. From cave paintings to mobile phones, it·s always the same. And this is even more true for young people. They are forging their social identity through conversation.
NATURE OF SERVICES
voice calls over the Internet Calls to other users of the service and, in some countries, to free-ofcharge numbers, are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing
Skype is free
Free is quite interesting to people. Especially free and good. And it·s more interesting still to impoverished young people! If you tell your friends to get Skype too, you can talk for as long as you like without worrying about the cost or the distance.
SKYPE·S SUCCESS
0 to
customers in 2.5 years.
Nearly 200 million customers today. Still growing at 200,000 new users every day.
RIGHT IDEA, RIGHT TIME
There was plenty of internet calling software before Skype. But it didn·t work very well, and lots of people still had slow dial-up internet connections. Plus it was called VoIP, which was a bit off-putting. Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access. It·s a very ¶native· product for young people.
SIMPLE AND EASY
Skype worked really hard on making Skype as easy to install and use as possible. We knew it was easy enough when Geoffrey·s grandma could use it. (Geoffrey is one of the original Skypers.) Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook«
Facebook group
Giving influencers new stuff Skypecasts are a new way to have conversations with people across the world who share your interests. Pick a subject you·re interested in from the directory, and join a hosted call with up to 100 other people from around the world. Our early-adopter influencers are helping us pioneer and shape this new way of communicating.
Skype feels free Skype is free. More than that though, it feels free. Free helps people realise that Skype is a different kind of company. We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?
Skype does a lot It·s a fast world. People get bored quickly. Part of being committed is keeping doing stuff ² it·s not good enough to have done it once. The advertising industry·s idea of the reductive ¶big idea· is no use here. It·s about doing lots of little things, that all add up to a rich, complex and involving brand.
WHAT DIDN·T WORK?
WHAT IS VIDEO CONFERENCING?
Interactive telecommunication technology Conference between two or more participants at different sites by transmitting audio and video data Tools: Video camera, microphone, speakers on device
VIDEO CONFERENCING CELL PHONES: A BUST!
Buy a specific phone Cost of the cell phone is expensive Poor image and sound quality Position of the camera is in the back of the phone
² Awkward ² Pointless
VIDEO CHAT SOFTWARE
SKYPE
Software application that allows users to make voice and video calls over the Internet Initial names: ´Sky peer-to-peerµ and was abbreviated to ´Skyperµ
y
Since the domain name was taken, the creators dropped the ´rµ and left the current title ´Skypeµ Conference Calls with multiple people Send Files instantly Connect to your land line Get your calls forwarded when you·re offline Send Text from skype Incoming calls from anyone
Special features:
y y y y y y
Great for individuals and businesses Affordable
y y
Free: Both users having Skype accounts Pay as you go or Monthly payment
Calls to landlines and call phones
TOP 3 VIDEO CONFERENCING SITES
iChat
y y y y
Must have Mac computer expensive 2009: est. 12% Most businesses use PC Both parties have to have gmail account
Google Talk
y
Skype
SKYPE IN A BUSINESS ASPECT
Great way to communicate in real time A way to communicate without physically being there Can work anywhere at anytime Better communication
y y
Less errors: everyone can look at the document at the same time and communicate Changes are visible
Deal with off shore clients Establish and maintain business relationships Improves Customer service
SKYPE AND EDUCATION
Video conferencing with authors Tutor session
y
Language tutor around the world
Study sessions Great way to Q & A with teachers and T.As
PORTER·S MODEL ANALYSIS
New Market Entrants Buyer Power Supplier Power Competitive Rivalry Product and Technology Development / Substitutes
COMPETITIVE RIVALRY
Jajah: . The service requires no client to download, and doesn't actually use a user's PC to make the call. Yahoo's VoIP Yahoo Messenger Lycos : A bundle of freebies PHONE.COM : With no hardware to purchase, no switching of business phone systems provider VIA TALK : A bouquet of services 8X8 INC. :
BUYER POWER
Cost Access Features Quality - video, voice
SUPPLIER POWER
IT-Infrasturcture companies e.g. Cisco Voice/Video Carrier
NEW MARKET ENTRANTS
MICROSOFT : As the VoIP (Voice over Internet Protocol) market continues to grow, computing heavy weight Microsoft have announced plans to enter the market with the release of their Office Communications Server. AltiGen : AltiGen, a provider of VoIP business phones and Microsoft-based Unified Communications offerings, has signed a deal with Italian distributor and telecom equipment vendor Hypercom. The move will allow Hypercom to sell and distribute AltiGen VoIP products to companies through Telecom Italia.
SUBSITUTES
Mobiles with 3G/2G Landlines Video-conferencing
SWOT ANALYSIS
Strengths E-bay Skype·s brand equity User base Conducive environment for growth
Users y Culture y Infrastructure
y
Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.
STRENGTHS
Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
WEAKNESSES
Low penetration of broadband relatively low visibility
OPPORTUNITIES BPOs and call-centers Collaborations with leading Indian ISP (like Airtel, Satyam etc) or portals (like rediff , indya.com etc) and bundle free downloads (same strategy followed by Skype in China , Japan) Aggressively Advertise Skype out charges in Indian Media Plunging broadband rates , large no of citizens, customer base living/working abroad ,booming economy and sheer numbers makes India and also China very good markets and worth fighting for in future
In February Skype secured a deal with Nokia under which the world's biggest phone maker will preload Skype software into some of its new smartphones.
THREATS
High growth means highly competition Easily available subsitutes Technology ever changing Intelligence agencies Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM Skype·s two day outage
GROWTH AND FINANCIAL IMPACT
Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009 Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
SUMMARY
A great Web 2.0 business Significant growth opportunities Leverage on the brand Buzzes quite well with everyone!
09BM8078
INTRODUCTION TO TELECOM SCENARIO
Economy, services, industry Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002 Major players and challenges Opportunities
NEW WORLD ORDER
Emerging areas New services: basic telephony, PC-tolandline/mobile/PC calls, IMs, video calls, videoconferencing, file-transfer Players: Skype, Gtalk, Jajah, Yahoo·s VoIP, Lycos, phone.com, AltiGen, Micrsoft
GOSSIP IS THE HUMAN EQUIVALENT OF 'SOCIAL GROOMING' AMONG PRIMATES
SKYPE INTRODUCTION
Software that enables the world's conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Everyday, people also use Skype to make low-cost calls to landlines and mobiles
SKYPE IS A COMMUNICATIONS TOOL
Humans are really, really, interested in things that help us communicate with each other more and better. From cave paintings to mobile phones, it·s always the same. And this is even more true for young people. They are forging their social identity through conversation.
NATURE OF SERVICES
voice calls over the Internet Calls to other users of the service and, in some countries, to free-ofcharge numbers, are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing
Skype is free
Free is quite interesting to people. Especially free and good. And it·s more interesting still to impoverished young people! If you tell your friends to get Skype too, you can talk for as long as you like without worrying about the cost or the distance.
SKYPE·S SUCCESS
0 to
customers in 2.5 years.
Nearly 200 million customers today. Still growing at 200,000 new users every day.
RIGHT IDEA, RIGHT TIME
There was plenty of internet calling software before Skype. But it didn·t work very well, and lots of people still had slow dial-up internet connections. Plus it was called VoIP, which was a bit off-putting. Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access. It·s a very ¶native· product for young people.
SIMPLE AND EASY
Skype worked really hard on making Skype as easy to install and use as possible. We knew it was easy enough when Geoffrey·s grandma could use it. (Geoffrey is one of the original Skypers.) Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook«
Facebook group
Giving influencers new stuff Skypecasts are a new way to have conversations with people across the world who share your interests. Pick a subject you·re interested in from the directory, and join a hosted call with up to 100 other people from around the world. Our early-adopter influencers are helping us pioneer and shape this new way of communicating.
Skype feels free Skype is free. More than that though, it feels free. Free helps people realise that Skype is a different kind of company. We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?
Skype does a lot It·s a fast world. People get bored quickly. Part of being committed is keeping doing stuff ² it·s not good enough to have done it once. The advertising industry·s idea of the reductive ¶big idea· is no use here. It·s about doing lots of little things, that all add up to a rich, complex and involving brand.
WHAT DIDN·T WORK?
WHAT IS VIDEO CONFERENCING?
Interactive telecommunication technology Conference between two or more participants at different sites by transmitting audio and video data Tools: Video camera, microphone, speakers on device
VIDEO CONFERENCING CELL PHONES: A BUST!
Buy a specific phone Cost of the cell phone is expensive Poor image and sound quality Position of the camera is in the back of the phone
² Awkward ² Pointless
VIDEO CHAT SOFTWARE
SKYPE
Software application that allows users to make voice and video calls over the Internet Initial names: ´Sky peer-to-peerµ and was abbreviated to ´Skyperµ
y
Since the domain name was taken, the creators dropped the ´rµ and left the current title ´Skypeµ Conference Calls with multiple people Send Files instantly Connect to your land line Get your calls forwarded when you·re offline Send Text from skype Incoming calls from anyone
Special features:
y y y y y y
Great for individuals and businesses Affordable
y y
Free: Both users having Skype accounts Pay as you go or Monthly payment
Calls to landlines and call phones
TOP 3 VIDEO CONFERENCING SITES
iChat
y y y y
Must have Mac computer expensive 2009: est. 12% Most businesses use PC Both parties have to have gmail account
Google Talk
y
Skype
SKYPE IN A BUSINESS ASPECT
Great way to communicate in real time A way to communicate without physically being there Can work anywhere at anytime Better communication
y y
Less errors: everyone can look at the document at the same time and communicate Changes are visible
Deal with off shore clients Establish and maintain business relationships Improves Customer service
SKYPE AND EDUCATION
Video conferencing with authors Tutor session
y
Language tutor around the world
Study sessions Great way to Q & A with teachers and T.As
PORTER·S MODEL ANALYSIS
New Market Entrants Buyer Power Supplier Power Competitive Rivalry Product and Technology Development / Substitutes
COMPETITIVE RIVALRY
Jajah: . The service requires no client to download, and doesn't actually use a user's PC to make the call. Yahoo's VoIP Yahoo Messenger Lycos : A bundle of freebies PHONE.COM : With no hardware to purchase, no switching of business phone systems provider VIA TALK : A bouquet of services 8X8 INC. :
BUYER POWER
Cost Access Features Quality - video, voice
SUPPLIER POWER
IT-Infrasturcture companies e.g. Cisco Voice/Video Carrier
NEW MARKET ENTRANTS
MICROSOFT : As the VoIP (Voice over Internet Protocol) market continues to grow, computing heavy weight Microsoft have announced plans to enter the market with the release of their Office Communications Server. AltiGen : AltiGen, a provider of VoIP business phones and Microsoft-based Unified Communications offerings, has signed a deal with Italian distributor and telecom equipment vendor Hypercom. The move will allow Hypercom to sell and distribute AltiGen VoIP products to companies through Telecom Italia.
SUBSITUTES
Mobiles with 3G/2G Landlines Video-conferencing
SWOT ANALYSIS
Strengths E-bay Skype·s brand equity User base Conducive environment for growth
Users y Culture y Infrastructure
y
Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.
STRENGTHS
Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
WEAKNESSES
Low penetration of broadband relatively low visibility
OPPORTUNITIES BPOs and call-centers Collaborations with leading Indian ISP (like Airtel, Satyam etc) or portals (like rediff , indya.com etc) and bundle free downloads (same strategy followed by Skype in China , Japan) Aggressively Advertise Skype out charges in Indian Media Plunging broadband rates , large no of citizens, customer base living/working abroad ,booming economy and sheer numbers makes India and also China very good markets and worth fighting for in future
In February Skype secured a deal with Nokia under which the world's biggest phone maker will preload Skype software into some of its new smartphones.
THREATS
High growth means highly competition Easily available subsitutes Technology ever changing Intelligence agencies Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM Skype·s two day outage
GROWTH AND FINANCIAL IMPACT
Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009 Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
SUMMARY
A great Web 2.0 business Significant growth opportunities Leverage on the brand Buzzes quite well with everyone!
