Microsoft's recent 8.5 billion acquisition of the Internet telecommunication giant Skype, shows Microsofts willingness to capitalize one the high demand that the public has for communication over the Internet. By making this deal Microsoft has acknowledged that their telecommunication technology is greatly inferior to that of their competitors Google and Apple, this will change soon though because as a result of his purchase of Skype, Microsoft will have access to Skype's superior telecommunication technology and Capitol. Over time Skypes technology will trickle down to many of windows products such as the Windows phone and the Xbox 360, demand for Windows phone 7 will also go up for a time because it will have superior video chat technology than the iPhone or Android phones. The acquisition of Skype could also help end the common misconception that it is less "hip" than google and Apple and that it is behind the curb in regards to video telecommunication technology. Sales of Microsoft product should also soar, because Microsofts products are already cheaper than their competitors products, the only reason Apple's products sold better was because they were of better quality and more high tech, and the majority of those thinking at the margin would rather pay up a bit more to get a better product, but now that Microsofts products will be more up to par, their sales and demand for their products will likely rise because of this. What do you think, do you think Microsoft's acquisition of Skype will have as big of an impact as many believe?
http://www.nytimes.com/2011/05/11/technology/11skype.html?_r=1
-Andrew Velvin, Cameron Casey, Will Noble
Yes i do believe that the purchase of Skype will help microsoft as they continue to grow. Microsoft was definitely thinking at the margin whether to purchase another company or not. Although that may seem to be a huge decision for a company, Microsoft is so large that a small acquisition such as Skype would be a simple 8.5 billion dollars in capitol. Although i believe that this will help Microsoft increase sales, i do not believe that their overall sales will increase as much as stated. I also do not believe that their current communication is inferior. Microsoft has the resources to extensive money and vast sources. They have created a product called "Sync" featured in many new model cars. their communication within that market is far superior to that of Apple or Google. I do agree that Microsoft is behind in some aspects, but I do think that they are ahead in others. Skype will have a large impact to Microsoft technology, but i do not think that their overall sales will increase much.
ReplyDeleteGeorge Collins
George, I see where your coming from while, about your point on how Microsoft won't catch up to Microsoft will not catch up to Google and Apple in sales, i personnally disagree because I believe they will catch up over tiem. I do agree with you that this purchase will help Microsoft with their telecommunitication their technology,
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