How do users solve those "problems" and get the most out of Skype? What are they using?

Hi, I'm Phil Wolff, Editor of Skype Journal.

We're spread thin covering the revolution. Can you help?

We're the romantics and the cynics, the engineers and the coolhunters. And we're building a publication with a large and loyal following. (681k pages served in September, and growing rapidly since we started in March 2005).

If you can find news and make sense of it, we need you.

If you can take the complex and make it seem obvious, we need you.

If you have a vision for the impact of Skype on technology, society, and business, we need you.

Specifically...

If these beats interest you, please email me: editor at skype journal dot com. Or Skype me at evanwolf.

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They are not really advertisements, but they are pretty close. I find them very annoying.

Here is one example:

Others are more pushy regarding buying of Skype's service.

Thank goodness they are not hard to get rid of... Skype user dantepippi posted the fix on the Forum here.

Just untick this box

I wish it was this easy in Yahoo.

This gent put his 277 Skype contacts to use today as he changed his "real name" to "1968 DB5 - Bid: £30k - 4 hrs left" for a while.

It's a great example of "field overloading," where users put a form field to novel uses. In this case, using Skype's p2p white page cloud to share a classified automobile-for-sale advert. Overloading is often a response to users wanting to use a system for more things.

You can easily imagine sharing your eBay listings, romantic status, career availability, or your public calendar. Some you'd make public, others shared to select friends or your whole buddy list. Putting your social capital to use at the edge of a network.

The Skype team that defines the user profile fights to keep it simple and small. Big and complex slows down the Skype ID cloud. Even small changes to the profile can double the bandwidth Skype clients use to keep the cloud moving or to search the cloud.

Skype product architects should pay attention, though. This is opportunity knocking, tipping its hand. Can you spell "Edge Commerce"?

Flash your smile around the globe. This WigiWigi is the best video application I have tested. Others agree.

"It's great... cool... this is awesome, I love it", commented Adnan Topuz President of AdoSoft INC in Toronto, Canada.

"This is amazing, this is amazing, this is great stuff". Charles Power, CEO of a web dating site Friendsation

This screenshot tells part of the story. It is my fellow tester Johnny in Denmark who was helping me test today.

last week I wrote that Wigi was not ready for prime time. Wait before downloading. Wait no more.

I wrote this User Quidebook to help you get going. Download here.

This amazing program is only 400 KB in size. That is less than half the size of Dialcom's Video4IM application. 10 seconds to download; 10 seconds to install and configure. And it works with any Instant Messaging Client from AOL to Yahoo.

The fluidity of the video is just outstanding. With speed set at 100 percent move your head back and forth like a pendulum. No tearing, no pixelation. The lip sync is perfect.

Look at this resolution of ten point type!

And look at this perfect colour!

Does it get better than this? Yup. Soon Ashod will have multi-party conferencing.

Publish your SkypeIn numbers though List Yourself. It lists your number in databases used by directory assistance operators in 23 countries. To the operators, this will be just another number for you.

While you're at it, be sure to add your SkypeIn numbers to the US National Do Not Call Registry. (foil those telemarketers).

Deal done. Retail VOIP in the offing? Views later.

eBay has agreed to acquire Luxembourg-based Skype Technologies SA, the global Internet communications company, for approximately $2.6 billion in up-front cash and eBay stock, plus potential performance-based consideration.

Skype generated approximately $7 million in revenues in 2004, and the company anticipates that it will generate an estimated $60 million in revenues in 2005 and more than $200 million in 2006. For Q4-05, eBay expects the acquisition to be dilutive to pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006. On a long-term basis, eBay expects Skype operating margins could be in the range of 20% to 25%.

The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2005.

eBay will host an investor conference call to discuss the announcement at 5 am Pacific Time today. A live webcast of the conference call can be accessed through the eBay's Investor Relations website at http://investor.eBay.com. An archive of the webcast will be accessible through the same link.

Full text of news release...

On Skype.com:

eBay to Acquire Skype

London, September 12, 2005 – eBay Inc. (Nasdaq: EBAY; www.eBay.com) has agreed to acquire Luxembourg-based Skype Technologies SA, the global Internet communications company, for approximately $2.6 billion in up-front cash and eBay stock, plus potential performance-based consideration. The acquisition will strengthen eBay’s global marketplace and payments platform, while opening several new lines of business and creating significant new monetization opportunities for the company. The deal also represents a major opportunity for Skype to advance its leadership in Internet voice communications and offer people worldwide new ways to communicate in a global online era. Skype, eBay and PayPal will create an unparalleled ecommerce and communications engine for buyers and sellers around the world.

“Communications is at the heart of ecommerce and community,” said Meg Whitman, President and Chief Executive Officer of eBay. “By combining the two leading ecommerce franchises, eBay and PayPal, with the leader in Internet voice communications, we will create an extraordinarily powerful environment for business on the Net.”

Founded in 2002 by Niklas Zennström and Janus Friis, Skype offers high-quality voice communications to anyone with an Internet connection anywhere in the world. The Skype software is easy to download and install, and enables free calls between Skype users online. Skype’s premium services provide low-cost connectivity to traditional fixed and mobile telephones. Skype’s software also offers a robust set of features, including voicemail, instant messaging, call forwarding and conference calling. Upcoming product innovations include Skype video, expressive content such as avatars, and customized toolbars for Outlook and Internet Explorer.

One of the fastest growing companies on the Internet, Skype already has 54 million members in 225 countries and territories. Skype is currently adding approximately 150,000 users a day and has created a thriving ecosystem of products, services, developers, and affiliates. Skype is considered the market leader in virtually all countries in which it does business. In North America alone, Skype has more users and serves more voice minutes than any other Internet voice communications provider.

“Our vision for Skype has always been to build the world’s largest communications business and revolutionize the ease with which people can communicate through the Internet,” said Niklas Zennström, Skype CEO and co-founder. “We can’t think of any better platform to fulfill this vision to become the voice of the Internet than with eBay and PayPal.”

“We’re great admirers of how eBay and PayPal have simplified global ecommerce and payments,” said Janus Friis, Skype co-founder and senior vice president, strategy. “Together we feel we can really change the way that people communicate, shop and do business online.”

Zennström and Friis will remain in their current positions. Zennström will report to eBay CEO Whitman and join eBay’s senior executive team.

A Powerful Ecommerce and Communications Engine

Online shopping depends on a number of factors to function well. Communications, like payments and shipping, is a critical part of this process. Skype will streamline and improve communications between buyers and sellers as it is integrated into the eBay marketplace. Buyers will gain an easy way to talk to sellers quickly and get the information they need to buy, and sellers can more easily build relationships with customers and close sales. As a result, Skype can increase the velocity of trade on eBay, especially in categories that require more involved communications such as used cars, business and industrial equipment, and high-end collectibles.

The acquisition also enables eBay and Skype to pursue entirely new lines of business. For example, in addition to eBay’s current transaction-based fees, ecommerce communications could be monetized on a pay-per-call basis through Skype. Pay-per-call communications opens up new categories of ecommerce, especially for those sectors that depend on a lead-generation model such as personal and business services, travel, new cars, and real estate. eBay’s other shopping websites — Shopping.com, Rent.com, Marktplaats.nl and Kijiji – can also benefit from the integration of Skype.

PayPal and Skype also make a powerful combination. For example, a PayPal wallet associated with each Skype account could make it much easier for users to pay for Skype fee-based services, adding to the number of PayPal accounts and increasing payment volume.

In addition, Skype can help expand the eBay and PayPal global footprint by providing buyers and sellers in emerging ecommerce markets, such as China, India, and Russia, with a more personal way to communicate online. And consumers in markets where eBay currently has a limited presence, such as Japan and Scandinavia, can learn about eBay and PayPal through Skype. Skype can also help streamline cross-border trading and communications.

With its rapidly expanding network of users, the Skype business complements the eBay and PayPal platforms. Each business is self-reinforcing, organically bringing greater returns with each new user or transaction. The three services can also reinforce and accelerate the growth of one another, thereby increasing the value of the combined businesses. Working together, they can create an unparalleled engine for ecommerce and communications around the world.

Transaction and Financial Information

eBay will acquire all of the outstanding shares of privately-held Skype for a total up-front consideration of approximately €2.1 billion, or approximately $2.6 billion, which is comprised of $1.3 billion in cash and the value of 32.4 million shares of eBay stock, which are subject to certain restrictions on resale.

The maximum amount potentially payable under the performance-based earn-out is approximately €1.2 billion, or approximately $1.5 billion, and would be payable in cash or eBay stock, at eBay’s discretion, with an expected payment date in 2008 or 2009. Skype shareholders were offered the choice between several consideration options for their shares. Shareholders representing approximately 40% of the Skype shares chose to receive a single payment in cash and eBay stock at the close of the transaction. Shareholders representing the remaining 60% of the Skype shares chose to receive a reduced up-front payment in cash and eBay stock at the close plus potential future earn-out payments which are based on performance-based goals for active users, gross profit and revenue.

The above-mentioned dollar and eBay share amounts are approximate, based on the Euro-Dollar exchange rate and eBay’s stock price as of September 9, 2005. The final value of the stock component of the consideration may vary significantly from this estimate based on the value of eBay stock at closing.

Skype generated approximately $7 million in revenues in 2004, and the company anticipates that it will generate an estimated $60 million in revenues in 2005 and more than $200 million in 2006. For Q4-05, eBay expects the acquisition to be dilutive to pro forma and GAAP earnings per share by $0.01 and $0.04 respectively. For the full year 2006, eBay expects the transaction to be dilutive to pro forma and GAAP earnings per share by $0.04 and $0.12 respectively, with breakeven on a pro forma basis expected in the fourth quarter of 2006. On a long-term basis, eBay expects Skype operating margins could be in the range of 20% to 25%.

The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2005.
About eBay Inc.

Founded in 1995, eBay pioneers communities built on commerce, sustained by trust, and inspired by opportunity. eBay enables ecommerce on a local, national and international basis with an array of websites – including the eBay Marketplace, PayPal, Kijiji, Rent.com and Shopping.com – that bring together millions of buyers and sellers every day.

About Skype Technologies SA

Skype, the Global Internet Communications Company™, allows people everywhere to make free, unlimited, superior quality voice calls via its award-winning innovative peer-to-peer software for Windows, Linux, Mac OS X, and Pocket PC platforms. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Since its launch in August 2003, Skype has been downloaded more than 163 million times in 225 countries and territories. Fifty-four million people are registered to use Skype’s free services, with over 3 million simultaneous users on the network at any one time. Skype Technologies SA is headquartered in Luxembourg and is growing its offices in London and Estonia.

Forward-Looking Statements

This announcement contains forward-looking statements regarding Skype and the expected impact of the acquisition of Skype on eBay’s financial results. Those statements involve risks and uncertainties, and actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the timing of the closing of the transaction, the possibility that the transaction may not close, the reaction of the users of Skype’s services, the future growth of Skype’s user base and public acceptance of Internet voice communication services, rapid technological changes in the Internet voice communications sector, the reaction of competitors to the transaction, global developments in the regulation of Internet voice communication services including those provided by Skype, the possibility that integration of Skype’s offerings following the transaction may be more difficult than expected, and the possibility that entry by Skype and eBay into potential new lines of business will not be successful. More information about potential factors which could affect eBay’s business and financial results is included in eBay’s Annual Report on Form 10-K for the year ended December 31, 2004, the company’s Quarterly Reports on Form 10-Q, and current reports on Form 8-K. All forward-looking statements are based on information available to eBay on the date hereof, and eBay assumes no obligation to update such statements.

The eBay announcement:

***A New Way to Communicate***

I’m excited to let you know that eBay plans to acquire Skype, the leader in online voice communications.

Skype has set a new standard in online voice communications with
outstanding sound quality and unmatched ease of use. And like eBay,
Skype has a fast-growing community -- some 54 million Skype users
around the world already use their PCs to talk with one another.

And best of all, conversations between Skype users via PC are free. You
can get up and running on Skype in just a few minutes. Just go to http://www.skype.com/go/x.home to learn more and download the free Skype software application. Try it – it’s fun!

Over time, we intend to make voice communications a part of the eBay
marketplace – a huge step forward in making transactions faster and
easier, as well as bringing even more interactivity and humanity to the
eBay Community.

You can include your Skype ID in your About Me page. For now, however,
Skype links may not appear in View Item pages. We’ll be working with
you, our Community, over the next few weeks to thoughtfully work out
the details of how eBay and Skype will interact, including any policy
changes that may be required.

We expect this acquisition to be finalized soon. In the meantime, you can learn more about our Skype plans in the news release we issued just a few minutes ago.

Working together, eBay, PayPal and Skype will redefine online trade and
community. I hope you’ll join us in this exciting new chapter in eBay’s
history.

Sincerely,

Meg

How good is good? Whose opinion is best? When is bad simply due to poor lighting, a cheap camera, or a camera that is not adjusted correctly?

In the Tim and Niklas Fireside Chat presentation shown at AlwaysOn conference showing off the new Skype Video Application (watch it here ) was the wash out of Niklas due to his wearing a white shirt (that’s a big no, no) or poor colour rendition by the Skype Application (maybe Tim Draper’s tie settled this point)?

I don’t wear a tie anymore, and I certainly couldn’t get my fellow beta testers like Carlo and Peter to wear a tie, let alone a tie like Tim Draper’s . (grin) So we are designing some test tools and scenarios to evaluate and compare video applications. I thought I would share some of those tests with you today.

To eliminate the effects of lighting, camera and camera setup we use a Virtual Camera ( discussed here )to feed three pictures directly into the video application we are testing. The three pics test resolution and colour rendition.

Here are three sample tests using Spontania’s Video4IM Client:

Simple; effective.

For the time being to test frame rate we use the elephant movie I discussed yesterday here.

The best frame rate test is an Italian contact like Carlo. Italian's are very animated. So if you are in a video conference with an Italian and there is no pixilation you just know you have high frame rate! (Grin)

What made my video buddy Michael speechless for the second time in one video call? It was the ability to deliver content; not the exchange of lip-sync perfect mug shots. Check out this screenshot...

This screenshot is a short movie clip of an elephant playing soccer delivered via the Spontania Video4IM Client.

Skype Video Apps Video chats are cool. Based on the approximately 500,000 downloads in the first month experienced by Video4IM and vSkype video apps are an obviously hot item. (links)

Another cool example of this new Skype video medium is the ability to deliver TV content as demonstrated by Skype beta tester Peter Henning and I a couple of weeks back in this article and shown again here:

Peter was broadcasting a local TV show in Romania to me via Spontania’s Video4IM. He used an ATI all-in-wonder 9600

For my elephant demo I used a software application Virtual Camera beta 0.9.0.0 It allows you to stream video clips like avi files into a 3rd party Skype Video Application or a sequence of photos.

You can switch between your webcam and the Virtual Camera in the middle of a call using the Video Device Setup tab in Video4IM as shown here:

Content delivery using these apps is pretty crude right now, but these demos give us a look into the short-term future. The Skype video channel will deliver up a whole new era of fun and business opportunities.

Last night Michael and I shared "an ultimate Skype video experience." He was on his laptop; in a hotel; a 1000 miles from home. A Yank in the land of "eh?" (Canada.) He is on a consulting gig and staying at The Calgary Marriott. Michael was speechless. You've got to know Michael to know just how big an event this must have been. (grin)

Michael contacted me as soon as he arrived in the Calgary to set up a time to test Spontania’s new Video4IM beta. He had previously tested the earlier release and was disappointed. Not only is he a talker, Michael is a serious tester of anything that will play video with Skype; even some that don’t. I covered his passion in a previous Skype Journal story.

To Michael, the measure of an 'ultimate Skype video experience' is: "can his daughter and ex-wife make it work?" "Can I see my daughter's missing tooth?" High frame rate, good colour rendition, high resolution; "well those are just nice to haves." During our test Michael got it all. One click and we were connected with voice and video.

Everyone measures the elements of an "ultimate Skype video experience" with different weights. The purpose of this series of articles is to discuss these elements and help you best manage those elements so you don’t have to give up your "nice to haves." To leave you speechless.

Most video applications suck up a lot of your Internet bandwidth. In fact most video applications are bandwidth hogs. The more animated you are the more bandwidth you consume and the more pixilated or blurry you will appear to your viewer. To get the most out of your video app you will want to know:

1. How to measure bandwidth
2. How much bandwidth you have
3. How much bandwidth your applications are consuming

The ultimate Skype Video experience requires a broadband connection. Most home broadband Internet connections are asymmetrical. This is a legacy idea from the dark ages of the Internet when most users were concerned about maximizing download speeds and greedy ISP with maximizing revenue. Thus many users have 128 kilobits/second (Kbs) upload and 256 download speeds. An upload speed of 128 Kbs may result in adequate or even good performance, but not the ultimate video performance. If you have 128 kbs of upload speed you will be using about 32 kbs for voice. That leaves a measly 96 kbs for video. Less actually, because nothing ever works at 100 percent and some bandwidth is always used for some housekeeping duties.

If you can afford to stay in the Calgary Marriott you can probably afford to buy the Internet if you could only find out who owns it. This Marriott provides a suburb in-room wired connection. We were both uploading 160 kbs for video and 32 kbs for a total of 192 kbs. Not only did Michael get his one click, "mom can use it simplicity," but the high bandwidth allowed us to move our heads from side to side about once per second and not get pixilation or a blurred image. And Michael noted that I have all my teeth.

I measure the bandwidth consumed by any application using NetPeeker. It is a shareware product available from www.net-peeker.com (if you miss the dash between ‘net’ and ‘peeker’ you will end up at a porn site).

I love this product. Been using it for over 18 months. Sent them my $25 two-days after I first downloaded it. A word of caution, keep your life simple turn off all the options. Just say no to firewalls, popup killers, and bandwidth throttles.

This screenshot shows my Skype Audio bandwidth during a test call. My upload bandwidth is shown as about 4 kilobytes per second or 32 kilobits per second (1 byte = 8 bits). If I was in call with Spontania’s Video4IM the product name will be listed alphabetically along with the corresponding upload and download bandwidth.
To find out your upload bandwidth visit my favourite measuring hole, PCPitstop.

Maybe you looked at your bandwidth as you read this story and I've left you kind of depressed. Don't be. Video apps are getting more sophisticated with each month that passes. Developers are using better bandwidth managing techniques, better codecs are emerging to compress more picture into a smaller bandwidth and users are getting smarter in managing lighting and buying better webcams. So the picture is getting brighter.

More on selecting a webcam.

I lucked out by getting CTO Barry Spencer of Santa Cruz Networks the creators of vSkype to tell us some of his experience about webcams. Thanks Barry!

When would you choose a CMOS over a CCD camera?

Several years ago there was a clear, visible distinction between CMOS and CCD webcams. CCD cameras were "good" and CMOS cameras were "bad". Now the line has blurred enough so that I (being a software dude) have lost track of which cameras are CCD and which are CMOS. CMOS has come a long way!

Is the field of view an issue?

The camera's field of view can definitely be an issue. Generally speaking, webcams have a rather wide field of view – the intention is that they can be placed 24" or so away from the user and you'll end up with a pleasant framing of the user's head and shoulders.

Some cameras use "software zoom" or face tracking to narrow the field of view – allowing the camera to be further away from the user. While this sounds like a nice feature, in reality, it isn't that nice. Software zooming can cause a huge loss of resolution – which results in pixilation.

Do all web cams support 30 Frames a Second?

There is substantial variation between cameras – largely dependent on the quality of capture hardware as well as the quality of the device drivers and the speed of your CPU. You'll want to make a smart choice and check out some reviews before you buy a camera.

Also, beware of OLD INVENTORY. Cameras from a few years ago can be *really bad* -- but may be placed on a shelf right next to a new model. Again, check reviews before you buy!

Finally, most people don't realize that lighting has a huge impact on frame rate. Like any camera, exposure time varies according to the lighting level. More light means a shorter exposure time – and hence, more FPS. If a camera requires 200ms to capture an image at a given lighting – it will only generate 5FPS – even it you're on the latest wiz-bang dual processor 2.7 GHz Zeon box. So... make sure you have good lighting!

One other point about lighting… The lower your lighting levels the higher the "video noise". Video noise will make your video appear grainy or washed out – which in itself is bad. But even more horrible is the fact that video noise causes major headaches for video compression algorithms – which will cause your video slow down even more. It is very hard for video compression algorithms to differentiate between "noise" and "detail". Is that sand blowing on a beach or a white wall captured by a cheap-o camera from 1991?

So, remember... Good lighting is important! (I'd like to see someone sell some sort of light-bar or light-ring which attaches itself to a CRT or flat panel display).

Can I use my Video Camera as a Web Cam? if so what are the issues I might face? How will the quality be different than my Logitech 4000 Pro?

Camcorders – DV cameras for example, have awesome image quality – especially compared to typical USB-based tethered webcams. And, many (perhaps most) DV cameras can be hooked directly to a computer using a firewire (1394) interface. You can even set your camcorder up on a small tripod on your desk and get just-the-right view of your insanely charismatic left profile. That's the good news. Now the bad news. Unfortunately, there is a "non-abundance" of applications which work with firewire cameras. vSkype, for example, doesn't support firewire cameras. We hope to fix this for vSkype very, very soon.

In the meantime, I've been told by more than one person that you can buy software on the web which will make your firewire camera appear like a webcam. Check out TrackerCam's.

Some cameras give a 320 by 240 pic size, others a 640 by 480 pic size? Which one do I want to buy? Why?

It depends on the camera. Some manufacturers will take a 320x240 image and "software zoom" it to 640x480 – just to get the checkbox on the sell sheet. Make your decision based on the actual resolution of the CCD or CMOS chip instead of featured video formats.

When I go full screen the pic is pretty ugly. What is happening here. What camera is best for Full screen?

When you go full screen, you're zooming a rather low resolution image up. Do this; take a magnifying glass and look at an image in a magazine. The closer you look the worse it appears. At some point you'll be looking at little wood fibers and thinking, MAN, I never realized that Beyonce's cheek was made of wood. Anyway, there is two ways to improve full screen presentation. One way is to use a higher capture resolution – 640x480 rather than 320x240 for example. Another way which is less intuitive is to use a lower screen resolution.

When I move my head from side to side the picture blurs and sometimes picilates. Does this have anything to do with my camera?

Blurring is usually due to a low-light level. Get a brighter light source, or open your drapes. Pixilation on the other hand, is usually due to a trade-off in the compression algorithm. Some video compression algorithms use lower resolution compression for an image which appears to moving a whole lot. This reduced compression results in pixilation.

Carlo and I had fun today checking all the 3rd party applications for how well they manage the rendition of colour.

We were very impressed. Here is a screenshot of Spontania's Video4IM.

On the right is the original colour chart before being viewed through my camera and on the left is what Carlo recieved at his computer in Denmark.

We also tested bypassing the camera by streaming direct to the Video4IM client. Same results.

Next week we will show you how to set your camera up and do this same test so you do not need to listen to our opinions. (smile)

Choosing a WebCam

What web cam is best? That is a tough question. There seems to be no end of the number of web cams available with a wide range of prices from $10 to thousands of dollars fitting every imaginable application.

The word "ultimate" in the title refers only to supporting basic video picture quality while conferencing with Skype.

If you need more detailed information I would suggest looking at Home Office Reports who have compiled information on over a 100 or more web cams.

Webcams come in two basic varieties. They use either CMOS or CCD technology to capture light. If your budget permits narrow your search to those using CCD (Charge-Coupled Device) technology. This is the same technology used by the Hubble Space Telescope. They have excellent light gathering power. My Logitech 4000 Pro is CCD (price is about $80 US dollars). I can actually deliver a quality image in a dark room lit only by my two 17 inch LCD monitors. (Note the Logitech Quick Cam Zoom is NOT CCD! Even with a lamp shining in his eyes Carlo’s face is still too dark at night. But Carlo's cam looks just like mine...don’t you just love marketing people?)

My camera supports a frame rate of up to 30 frames a second. Most of the applications I test run at 15, but as the applications improve 30 frames per second will likely be more common so why not invest to have that extra fluidity in your videos in the future.

What resolution should you get? 640x480 or 320x240? Get the 640x480. Why? That is a big question. I suggest going here to find out why and just how much better one is than the other.

Update the camera driver. Even if you bought it today. Same goes for Microsoft DirectX, one of the most frequent causes of poor video quality according to Spontania Product Manager Mario Silva Sanz.

Tommorrow I will cover how your bandwidth affects video quality.

This is Part One of a series of tips and tricks to achieving the ultimate video experience.

Camera Setup

Three simple rules:

1. Have the main source of light coming from behind the web cam.
2. Keep the video pic of your buddy immediately below the web cam.
3. Have the web cam level center to your eyes.

Following these rules will lead to balanced lighting. Both sides of your face should have equal lighting without shadows around your eyes, while making it easy to look directly into the camera to maximize eye contact.

Next in this series: Choosing a Camera.

by Jan Geirnaert, an IT/Internet Business Consultant in Malaysia.

I have worked here in Kuala Lumpur, Malaysia, as the IT manager and network administrator for a small non-IT business. One of the many things I did is cutting the cost of the phone bill by implementing Skype as a VoIP solution. These thoughts are not purely IT/technical. My wage was paid by the cost-savings on the telecom-bill.

Here are some issues to be taken into account before implementing Skype. What you read below is how I did it, these are my personal experiences. The standard setup-recommendations can be found on the Skype web site.

Make your case gently and with numbers

Explain properly to all involved management levels and teams (especially Finance and higher management-levels) what the solutions consist off. Don’t go too much into IT-technical issues. Focus on the advantages and the low cost (only your time and skill are important here). Take into account that VoIP (Skype included) is something new and a low-level entry is better than no entry at all. If you make things sound complicated, it just won’t work.

Do not be aversive or aggressive towards existing technologies that have been put in place. Introducing a new technology in real life situations has to be done by focusing on the advantages of the technology for the existing users. Today and now. If you start comparing with existing solutions based on older but valid (operationally speaking) technology you will be seen as an evangelist. In the end the customer will choose for things that work. Being right or wrong is not an issue here. Making something work and pinpointing the cost is.

The advantage of having chosen Skype is that the implementation took only some upgrading of the security layers in the existing Windows XP network and adding more bandwidth to the existing ADSL-Internet connection. [Ed: As opposed to investing in an entirely new telephone system, with digital PBX, cabling, and phones.]

It is advisable to check the security settings and activate bandwidth monitoring, software-firewall on the systems that are going to use the Skype solution.

Creating a basic user-policy is useful too.

An easy way to get the project going could be to ask for the existing phone bill and spread it out over 4 quarters (Q1/Q2/Q3/Q4). Put this in a spreadsheet. Make a quick analysis of the current recurrent phone bill on fixed phones, mobile phones (actually anything that goes out via the traditional PABX system). The reasoning to apply here: by conducting phone traffic via the Internet, the phone bill of the existing PSTN-traffic will go down. Keep track of this. After one year you will be able to see what the effect of a Skype implementation is on the telecom bill.

Configuration and Deployment

At the time of implementation there were no USB-link-boxes or super de luxe devices available. So I choose simple headsets (0.5 euro each). Installation was very simple. Plug in the headset, install Skype and off you go. Once you save some money (or you could do it from the start), you can put devices in place that link your Skype via USB to your existing phone. Nobody likes to sit with a headset on... But this topic is the topic of using the external hardware devices (so many options here). Make sure you test the hardware solution first.

Once Skype is activated you will encounter the problem of the naming convention. People will always try to do what they want if options are given to choose. So preventing a wild spread of all kind of names (resulting in not knowing who is who) I applied this rule on the naming: (company-abbreviation)-(country-iso-code)-surname. If you have those annoying users who still want their own nickname instead of company related names, well the surname could be replaced by the nickname. In order to avoid this you can simply create all user names before the users start making them. Creating the user names for your population will also avoid wide-spread of the passwords. Do enter an email-address in the Skype program during installation and fill in the full name.

What is missing in the Skype-ID-fields now are 3 fields : company-name, department, function/position of the user. Now thinking further on this matter of “who is who,” integration with LDAP servers would be nice. These would be like LDAP integration with Outlook. But not having access to all that technology I used a simple trick: installing Plaxo 2.0. (www.plaxo.com). In the IM field you can then mention the Skype ID. Works and it keeps the costs down. This is ideal in an environment that has no central email-LDAP-address book. Remember I am talking about a solution for companies that have multiple locations, external partners who are connected to each other only via some computers, and ADSL Internet connections.

Actually spreading the name list is quite simple. Set up one central account, support@ (for example), and add the new users to the office list. Then send around an email (anybody can setup account, externals included, which is kind of confusing) stating that this or that has been added/deleted. Ask people to add / authorise the user to their list.

After having done the implementation, try to make the users add their picture or company logo. This adds to the security features of Skype too, since Skype seems to allow you to login twice or more with the same account. I assume that the picture will not appear if somebody else but yourself logs in (since the picture resides on your hard disk). Your voice and your face are unique, you better get this done quickly.

I never engage in a talk with external sources without having heard their voice. P2P solutions have the advantage you can quickly connect to "everybody," and it can be everybody. Avoid leaking of valuable information. With some luck you will be able to use Skype for the voice traffic in no time. On top of that, it has an interesting instant messenging feature and let's you send around files in no time.

Once the users are happy with the existing Skype-functionality, get back to Finance and Management and show that the Skype system can be used to make calls to mobile and fixed phones. You can then start setting up a general company billing account (SkypeOut) for the fixed computers. For some users you will have to setup individual accounts. Be careful not to compromise the credit card info of multiple users. It might be more useful to use a company credit card that has some web protection. You can actually "top up" user accounts by using one credit card, which has the advantage of centralised financial control.

I guess that is about it (for now). After implementation you should provide the user with a basic "how to setup and use" manual. Let them get used to the system and take it from there. Keep track of the support requests. You will learn a lot from those questions.

Open issues...

Some problems and open questions remain.

• How to get centralised control on the number of calls generated on a "company account"?
• Can the concept of a mail server be applied on Skype?
• How to keep track of the files and information sent via Skype?
• How to get rid of Skype spammers and SPIT?

If you want to give me your ideas and thoughts on this, just callto:tropicaljantie.

Reprinted by permission from Jan in Malaysia.

This is from Emiliano Morgia in Genoa, Italy. Thanks Emiliano!!

At work he has a Windows Machine (I guess to maximize productivity) and at home a MAC (I guess to maximize his entertainment. He uses the same Skype ID on each (emilianomorgia). All his personal friends are "blocked" on his Windows 4 Work machine and all his business contacts are "blocked" on his MAC 4 Home machine.

Works like a charm.

Ever press the dial pad numbers in Skype, but not have the tones work right? I wrote a tiny program that fixes it. Free. This is what it looks like:

You can download it here.

So the next time you call to order pizza, book movie tickets, or check your bank balance, I hope you'll use KhaosDial.

For more information or to leave some feedback, please see this post on the Skype forum.

By Peter Henning, Skype Super User and Beta Tester. Bucharest, Romania

Today we got a brand new toy from Skype, it is called Skype for Outlook. It integrates into Microsoft Outlook, the email and calendaring program in Microsoft's Office Suite.

This toolbar enables you to use Skype directly from Outlook and should work on all versions of Outlook beginning from version 2000 onwards on both Windows XP and Windows 2000. Skype for Outlook is a plugin for Skype therefore Skype needs to be installed on your system for the toolbar to work. As a side note, Outlook is a different product than Outlook Express which comes free with Windows and this toolbar will NOT work with Outlook Express.

Okay, nice new toy, but do you need it?

To answer this question you need to ask yourself if you are still using mail or have you moved on? To be honest I don't really use mail for personal communication anymore, but do get a lot of business related mail from people I know, which is why I love this toolbar.

Skype Staff have recognized that even though they use email less and less, some people and workplaces are still heavily reliant on email. This toolbar comes to their help in providing ways to make communication seamless.

Installation is fast

To install Skype for Outlook toolbar, just download it, run the .exe and follow the instructions. When you restart Outlook, you be will prompted to authorize an application called SKYPEOBE to use Skype. You should authorize this as it is essential for the toolbar to work.

So, what does it do?

One of the more important things about it is that it integrates Skype presence information into Outlook. Receiving mail from a contact and seeing that his is online can lead to a much quicker response and an increase in productivity to those who rely heavily on email.

Matching Outlook contacts to Skype contacts is easy.

To be able to associate a Skype name to an outlook contact just press the Looking glass icon on the toolbar. Skype for Outlook tries to find a match from you current Skype contact based on Name and Email, it if fails you can open the combobox and select it yourself. If you don't have the Skype name of that contact in your Skype contact list you can associate by typing it in. There is also an option to search for the contacts Skype name using Skype's integrated search feature.

Skype stores the Skype name information in the contact's radio phone field so you can complete this manually too.

There isn't any way of associating multiple Skype names with one contact, however I was told that this feature is something that they are looking into for the next release.

If you have completed the task successfully, clicking on an email received from Skype contact would show his/her presence and name on the toolbar.

Now after you have set up the associations is very simple to use. You can either select what you want to do from the toolbar combobox or you can just hit the appropriate buttons to call or send instant message. You can also do this by right clicking the email and going to the Skype for Outlook option.

The toolbar recognizes Skype contacts even from the cc and to email headers, giving you the ability to instantly call and chat to people who have received the same email.

You can also edit the Skype name either by manually modifying the Radio Phone field or clicking on the 'Edit Skype name...' option in the toolbar combobox.

Something that I found very neat is that Skype for Outlook enables you to call the phone numbers of Outlook contacts even without these being added to your Skype contact list.

You can also set the default country code so if the phone number in your contacts' profile is in local format (not in international), Skype can complete the phone number when attempting to call such a contact without your intervention.

Skype names and telephone numbers are also recognized in the body of an email, making it even more convenient for you to get in touch with whoever you want.

Care to start a group chat from email messages? You can do that too. Even chat topics are automatically set to the emails subject.

Credits

Special thanks for this product goes to Peter Kalmstrom who started working on an Outlook plugin for Skype quite a while back, drawing the attention of Skype management and having been hired as a contractor to develop this product. Recently he has been hired full time at Skype to continue the development of Skype for Outlook. Mat Taylor, Skype London, who manags the API and other third party develper's efforts helped do the engineering specifications and testing. Applause to both!

Other features include:

• Record journal entries for all incoming Skype calls
• Automatically add Skype callto signatures to outgoing email messages.
• Import contacts to Skype direct from Outlook.
• Open Outlook contact automatically for incoming calls.
• 
  

Later today, Skype Journal will feature another exclusive preview of another new Skype tool.

Another reason to partner Skype and Firefox (the web browser of choice). Add Skypelinkify and making phone calls for Pizza off web pages just becomes a one click request. Skypelinkify activates SkypeOut calling capability to every phone number on any web page just by clicking. Let's give thanks to the guys at the Questar Developer Blog.

We have been using SugarCRM, and various VOIP solutions, among them Skype for some time, and I have always wanted to be able and click on a phone number I'd see on a web page. I felt so silly when I looked up a phone number on the web, and had to re-key it, or even to copy and paste it to somewhere else. Now, with the help of Marco, we have a neat Greasemonkey script: Skypelinkify. Skypelinkify links to a Skype callto:// URI every likely phone number on the web page. Questar Developer Blog Get the Instructions.

Thanks David for adding the details that made installing it easy. Remember it only works in Firefox, and not IE, since Greasemonkey is FF only.

It is *very* easy to install:
1. Install the Greasemonkey extension for Firefox from here. http://greasemonkey.mozdev.org/
2. Open the Skypelinkify file from the link http://www.questar.it/blog/developer/skypelinkify.user.js
3. In the browser choose from the Tools menu, 'Install User Script...' Click Ok
4. From now on, any page you go to will have what the script thinks are phone numbers linked to the callto tag.

Note if you want to use this in another country you have to modify the script slightly.

David says: "I changed the file to skypelinkify the US phone numbers, as on my example screen. You only have to manually change the line "const defaultPrefix= '+1';" to the country prefix you want to use."

Cool! It also links all the numbers in a page. Benefits! No more copying and writing down those numbers. Just one more simple way that Skype and developers are making communication easier.

I still remember the pain. Trying to make my first 96 by 96 pixel photo for my Skype profile. Just found this neat free service on the Skype Forum. In less than a minute up can upload a photo, crop it, and download a 96 x 96 back to your desktop.

The free service is located here.

Works like this:

1. Browse to the original photo on your PC using the Browse Button.

2. Click on Upload

3. Crop the photo...

4. Download cropped image

Sweet. No more pain.