Could Skype achieve Windows-like lock-in?
Can Skype users switch? Brough Turner thinks so. He makes the case that, unlike an operating system, users can easily download clients for other messaging networks.
There is a fundamental difference between operating systems and IP-communications. You only run one operating system on your computer. You can easy run multiple IP-Communications clients on the same computer at the same time.
Today I run three instant messenger clients at all times, because there are groups I participate in who happen to use different instant messenger networks. It doesn't matter. The services are all free. The user interfaces are very similar. The overhead to install an additional IM client is very small. The same will apply to Skype competitors, when they emerge.
For now, Skype is building a brand. Their product works better than anything else in the market, they're making good use of the viral marketing inherently available to any communications product, and their open APIs foster 3rd party developers who are extending their eco-system in myriad directions. I use Skype and I look forward to their success. But there is nothing to prevent me from running Skype and a new competitor's software at the same time on the same PC and the same Internet connection.
I'd never guarantee it, but Skype can achieve customer loyalty, providing they continue to deliver the basic services at competitive advantage.
- Social Network Inertia. See Judith Meskill's list of social network systems. These systems blend buddy lists (helping you keep in touch with friends, family, and the rest of your contacts) with discovery of interesting strangers. Individuals populate the systems with their Outlook address books, and invite their friends to join. If you switch to another network, you must convince your friends to follow. But it's hard to switch, taking time and energy, and each person you persuade must also drag their friends into the new network. And you can only do this a few times to your friends before they stop following you. Each time you ask friends to switch, you burn your social capital. If it was easy, we'd all have swarmed one of the top five IM services, leaving the others silent. Same with friends-and-family phone services.
Ecological Dependence. Microsoft Windows isn't all that great, but it has a zillion independent software developers who've written a gazillion programs that run on it. This means you can find swine feed rotation software or a chiropractic practice management system or a flight time logger. Windows also has a large constellation of service providers. Businesses that provide training, technical support, updates, virus protection and the like. The ecology of software developers and service providers enriches users. Switching means not only leaving Windows but leaving its warm and vital ecology.
Skype is a platform for developers and service providers, just like Windows. Like Microsoft, Skype doesn't show all of its code, but it shows you, through its API (Application Programmer Interface) how to use its components. A growing Skype developer and partner community builds a stream of future capabilities and choices into the Skype ecology. The ecology guarantees that if Skype doesn't meet a need, someone else will.
As you use third parties in the Skype network to screen calls, find work, wake you up in the morning, or find a date, you invest yourself in this ecology.
An Identity Worth Fighting For. Skype users are making Skype a beloved icon. When was the last time someone said they love Verizon, bragging about it their friends? Skype is becoming a lovemark, like Bookcrossing, Apple computers, Moleskins, Coca Cola, Lego, and Google. A brand that makes people smile just thinking about it. That helps them stick through tough times and celebrate successes. An identity that bridges cultures, languages, and generations. Saatchi and Saatchi says a lovemark "inspires loyalty behond reason." Talk to people about how Skype changed their lives, became a part of how they work, put money in their pocket. Ask how Skype surprises and delights them.
Other factors strengthen lock-in, and fight it. But Skype earns Skyper loyalty every day.
Comments
To correct Brough Turner, you CAN run more than one Operating System on your computer, and you can also run more than one at a time, too. Using Microsoft Vitual PC 2004 or VMWare, you can (if you have a lot of RAM). Run like 6+ Operating Systems at one time, with a mix of Windows and Linux flavors.
Posted by: CypherXero | May 5, 2005 02:55 PM
Skype is great, but you mention service providers using their product. I must bring up the fact that XTen is gaining a lot of equipment and service provider clients who are obtaining their much more sophisticated, SIP client/SDK. I'm not a big fan of XTen, but I have noticed their traction in the marketplace with their advanced product. I believe the company is on the ropes financially, but they have been flooding the market place with their product.
Posted by: Rick | May 5, 2005 03:41 PM
Rick,
Interesting comments. Quick question, though. Since Xten promotes itself as standards (SIP) compliant, can they really work with any other SIP compliant client? So, if I have a Xten client, can someone with a Vonage client just dial me?
It seems to be one thing to be SIP-compliant, but what happens if the RTP payloads aren't the same thing--meaning, what if I am encoding with H.263, but the other end doesn't have a H.263 decoder?
Posted by: Chris Woods | May 6, 2005 08:41 AM
Chris and Rick,
The observations about SIP are interesting in the context of walled gardens. For while you can get an Xten phone from Vonage (for extra dollars per month!!!!) you cannot connect the Vonage SIP client to a FWD number for example. Thus you must dial out of Vonage just like you would SkypeOut.
SIP compliant from a consumer perspective is meaningless. It's also all about control points. In a decentralized world SIP and the mobile carriers IMS proposed duplication simple try to port the old telecom rules to IP. It simply isn't going to work.
I'm concerned that the "strategies" that companies are being sold on for VON / voice IP solutions aren't approaching the problem from the perspective of where the real value is going to come from. It's cost and control focused --- not value added opportunities.
Posted by: Stuart Henshall | May 6, 2005 10:33 AM
I agree as there is nothing to stop me from running Skype and a new competitor's software at the same time on the same PC and the same Internet connection.
However, I think Skype's proprietary codecs like WigiWigi will pose problems when you move beyond the PC world:
- Handset and PDA manufacturers will not want to install multiple clients on their devices and will probably opt for the most popular or the one that supports open standards like SIP/Simple
- It will get annoying for users to have to pick and choose which client to use to make a call
VoIP needs to work like email - you just send it to an address and it gets there, regardless of what the recipient is using. VoIP needs to avoid how email used to be where you couldn't email a Lotus Notes user etc.
Connected
Posted by: Connected | May 10, 2005 07:16 AM
Connected,
Is there not a miss mash of things here? Re Handsets are you meaning landline type phones or mobile handsets from Nokia et al? Or perhaps Wi-Fi handsets.
When a "communications" application is just "free" and anyone can download it, it is more likely that the mobile operators will frustrate your choice.
It's why a Symbian solution for Skype that provides presence and texting over GPRS is such an interesting short-term item. I could download it to my phone and don't have to ask T-Mobile.
The only thing I am missing right now for a simple solution to make calls is for Skype and my Mobile to ring at the same time. I'm sure that will come. Be even better if they had the same number.
Posted by: Stuart Henshall | May 10, 2005 08:21 AM
By handsets I mean Mobile handsets.
Yes, Mobile operators will frustrate users and will continue to do so. They will deliberately hamper the development of anything that will reduce their voice mins.
Posted by: Connected | May 11, 2005 03:35 AM
Hi Connected and all,
apologies if this is a basic question - I'm not from a tech background..
Are operators able to block Skype traffic through their networks? Surely they must have control over what traffic they allow to flow from the cellular space to the web? I am just trying to work out if the upcoming launch of mobile Skype clients for MS and Symbian is being over hyped.
Thanks in advance for any help!
Posted by: Jimimac | May 12, 2005 03:27 AM
Can we use Skype on the Windows Mobile operating system installed on a cell phone? Specifically on the new Verizon Treo 700W Smart phone?
Thnaks
Posted by: paul | January 16, 2006 08:35 AM
everybody please look into asterisk... SIP is definitely a standard protocol, as are many codecs. it's the proprietary codecs that are making it even more difficult to interconnect different VOIP networks. if skype was so "cool" like google and apple, they would allow others to interface with their network.
and to clarify, vonage's softphone is a standard SIP-based solution that can be used with non-xten SIP clients
plus, the article mentioned above is completely retarded. 3 IM clients at the same time? download trillian! 3 different VOIP connections? use asterisk - same concept. consolidation is key, but providers need to keep their networks open to work properly...
Posted by: wumarkus | May 10, 2006 07:21 PM