CaptainAmerica Maverick gave me a bracelet tonight. A Skype presence bracelet. It shows my Skype availability when I wear it in Second Life. And if you're in 2L with me, you can use it to Skype me (I'm "Phil Arrow").

Stephen "CaptainAmerica" Klosky is using Skype's "SkypeWeb", a web service that takes a Skype username and returns that user's public status.

Web services are the life blood of Web 2.0, published protocols that open a company's software engines to programmers. SkypeWeb is Skype's only public protocol.

Skype must do more to empower developers who want to blend Skype into the rest of cyberspace. On Skype Journal's short list:

1. Turn the Skype client messaging APIs into web services. All of them.
2. Skype user authentication as a web service.
3. Directory service for public chats, public conference calls, and open contact groups.

Offering a "Naked Skype," (Skype devzone wiki, Skype issue database) a bundle of protocols to the cloud, would let developers blend Skype with any service, including email (like Microsoft, Google, and Yahoo!).

Skype is in an earnest race. (Skype management has not acknowledged this.) The company wins who publishes the most complete, friendly web services for live communication. The measure of success: developers everywhere mashing up your communications with their social networks, mashing up your social network with their services. Skype's performance so far: not in the game.

Today, for example, I must use the unscalable Skype client on projects to: 

• Write a web page that shows a Google map of the locations of a logged-in visitor's contacts, colored by contact group, indications of when they are likely to be online.
• Build a web based feed aggregator that crawls urls mentioned in buddy profiles, showing updated web pages and blog posts.
• Run gateways between the Skype network and SIP services.

In the Skype 3.0 public chat, Julian Bond said Skype's new Skype4com ActiveX wrapper gets us partway there. I suppose it does, if all you care about is embedding a Skype widget in web pages or rich clients. So much more is needed.

Web services will unleash the power of Skype's

• communication infrastructures,
• identity infrastructures,
• social infrastructures and collective social capital, and
• commercial infrastructures.

Web services open new markets, attract new customers, reinforce your value propositions.

In Second Life, web services literally open up new worlds. Skype's rivals get it and are acting now. Where is Skype's leadership in this race?

... in a game where, as in golf, the lowest number of strokes wins! Google announced a Click-to-Call feature for Google Maps yesterday. So I go to Google Maps, select Businesses, enter "restaurants" into the Type of Business box and "Mississauga {Home Postal Code}" into the "Where" box. And I get:

Click on B for Golden View Restaurants (where we obtain our annual New Year's Eve party food) and I get the pop-up below on the left. Click on Send to Phone and I get the pop-up asking for my phone number and my carrier -- except there are only U.S. carriers listed (and all Telco 1.0)! 3 clicks plus 10 characters (to enter your phone number). Except I live in Canada ....hmmm ....

Or, since I have installed the Skype 3.0 Beta with its Click-to-Call feature, I can simply pick up my UConnect-enabled Nortel phone, dial **, (or pick up a USB-connected VoIPvoice Cyberphone) and click on the Skypified link under the restaurant's listing on the left:. I then click OK on the "Start SkypeOut" confirmation window. Call initiated; no Telco 1.0 carrier designation required! (And note that Skype 3.0's Click-to-Call recognizes that it is a Canadian phone number.) One click to place the call; one to acknowledge that there could be a charge involved.

A simple example of what Martin is talking about in his Telco 2.0 "Death of the Phone Company" post.

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.. in the UK at least. Today, as one partner participating in the 3 X-Series service announcement by Hutchison Whampoa's 3 Group, Skype has announced its first truly mobile offering where Skype users can make "free" Skype-to-Skype calls on a mobile phone. Starting December 1, 3 Group will launch a new flat fee mobile broadband Internet service in the UK. In the press release related to this announcement Skype CEO Niklas Zennström said:

With 3, I am very proud to say that for the first time, our users can now try out making Skype calls on the move using a mobile phone. We always want to delight our users by letting them try out new ways of keeping in touch. This is a real milestone for Skype because now you can use Skype beyond the PC, no matter where you happen to be.

CIO Now has an excellent detailed description of the impact for Skype; the key points being:

• 3 Group will launch the new X-Series service December 1 in the U.K. and roll it out to the other countries in which 3 Group operates (including Ireland, Austria, Sweden, Denmark, Italy, Israel, Australia and Hong Kong) in early 2007.
• While it will be a flat-fee mobile broadband Internet service, no pricing has yet been announced.

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1. Skypest.com is a market for buying/selling Skype names. Like trading in domain names. Hmmm. Check your wallet. And start ego surfing.

2. Google added Skype to the free Google Pack. Excellent distribution partner. Also explains why the Google toolbar comes with the free Skype toolbar bundle.

3. Skype's Firefox toolbar catching some users by surprise. They're surprised because they don't notice toolbars installing with Skype 3.0 beta for Windows. (just click next.) They are happily surprised: they like the phone number hotlinking. I've been doing this since the summer of 2005 using the Skypelinkify script.

4. How to use a hex editor to tweak Skype. Now if I only didn't have to use a hex editor.

5. Debian and ubuntu linux users have a simple Skype install now. Love those .deb packages.

6. Business 2.0 profiles a software trainer who uses Skype. The shot of Bill Lewis Skyping his students from the Puerto Vallarta beach in his shorts. Classic. The story says entrepreneurs have new opportunities when phone service is free/cheap. Good one for Skype's PR team.

7. The Skypecasts service graduated from Preview to Beta. When?

8. SPIM (spam over instant messaging) causes Skypers to shut down calls from strangers. Can you imagine only getting email from people you already know? Phone calls? Maybe it's time to start white/grey/black lists, like for email?

9. PhoneBoy picks SightSpeed video over Skype 3.0. Just one data point, right?

10. Will Skype continue free SkypeOut calls in the US, Canada, and elsewhere in 2007? Millions want to know. A few, so they can top up their Skype accounts. Others, so they can start shopping.

11. Waiting for Skype to pay off for eBay. A what-happened-in-the-year-since-eBay-bought-Skype story by the International Herald Tribune's Kevin J. O'Brien. I liked Martin's quote: "Skype is in danger of becoming the Netscape of voice over Internet protocol phone companies... Skype may prove that you can be the first to innovate a piece of software but the last to find a way to make money from it." Typical Geddes, and everyone else pretty much said what you'd expect them to say.

Monday afternoon's first Fall VON 2006 plenary session, IM: The State of Presence, featuring a panel of executives and managers from the GYMAS-five representing over 90% of the IM usage worldwide:

• Dan Casey, Director, Windows Live VoIP and Messenger Product Management, Microsoft
• Jeff Bonforte, Director of Voice Product Management, Yahoo!
• Nitzan Shaer, Director, Mobile Devices, Skype
• Mike Jazayeri, Product Manager, Real Time Communications & Google Talk, Google
• Ragui Kamel, Sr. Vice President & General Manager, AOL Voice Services, America Online.

As mentioned previously Carl Ford ran his usual vibrant Q&A format, offering each member of the panel an opportunity to provide commentary on several topics surrounding IM and where it is going. It was a very informative and stimulating discussion overall. Carl's questioning covered why IM, video usage, the role of presence, mobile reach, business models and projections in for the future.

Why do users want Voice with Instant Messaging? From the students avoiding contention when sharing one phone line in a five-student apartment to business productivity enhancement, we heard stories about new scenarios enabled where IM and voice facilitate social networking to newly announced collaborative applications that share spreadsheets. Oh, and for the younger generation, IM allows students to avoid being seen holding discussions in the classroom; did I say to allow private discussion sessions in the boardroom? The new challenge arises when a group of youth want to do a conference call but Stephanie is is not on IM but at the mall shopping for new shoes.

Nitzan talked about how IM with Skype allows users to create one centralized ID that can be used across weblogs, sharing pictures, and enhancing a discussion using video.

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I've been looking through the VON Boston program and don't see Skypenomics on the agenda. Nobody is talking about how Skype and its cousins continue to change the rules.

1. Skype is building Click-to-Call advertising. Online advertising is the only ad sector that continues to grow. Skype, eBay and Google are diving in to get their share. Click-to-Call isn't new, but the marketing might of Google and eBay, and their far reaching ecosystems, suggest they can deploy to millions on the web, and eventually on mobiles.
2. Skype hardware partnerships are extending Skype's brand and customer reach. Hardware is part of Skype's strategy for earning brand acceptance. Hardware is also crucial to putting Skype into homes and home offices.
3. China. Skype's biggest userbase is in China, the fastest growing broadband market, a place where more people speak English than in the United States. How many telcos and cablecos are as active globally as Skype? How many have become household brands outside their native markets?
4. Yellow Pages. PC-based search is a direct competitor to directory assistance services. This year Skype added business search to their browser toolbars and promised to add it to the Skype user directory. Their business development team continues to build alliances, country by country, with yellow page database providers. Watch browser-centric phone apps like Skype erode directory assistance revenue as Skype migrates to mobiles.
5. Payments. Skype will add person-to-person PayPal payment to its client, as shown in our banner this week and the graphic above. Skype is going to get its share of the remittance market. Again, Skype wraps conversation in commerce.

In short, Skype is

• Amplifying network effects. It's not just more is more. You can do more things with your Skype buddy list, create more social capital, than in other networks.
• Surrounding calls with value-added services. Revenue, for starters. Loyalty builders, too.

In a time of large dinosaurs everyone else is either quick or dead. Right now, Skype looks quick.

Google UK ads were discovered with little green phones. I walk you through the experience (it works). This is a grand way to get your feet wet in the click-to-call business. You'll learn things. Like what happens to an advertiser when the phone rings off the hook ("all operators are busy"). Customer privacy concerns. Keeping it simple. 

Offering Skype and GoogleTalk options should cut down operations costs, compared to ringback services; you don't pay for two long distance calls.

Click-to-call's live interaction may be one of the biggest business challenges for advertisers. The skills for running a call center are very different from mastering a shopping site. And converting customers in a conversation is different than pulling through your site's shopping cart.

For example, there's often a gap between customer and advertiser time zones and hours of operation. Scheduling a call back should improve response rates, not to mention avoid waking small business people at 2am. Letting callers choose "Please call me around 9am tomorrow" is another. Click-to-voicemail during off hours or when overloaded is another.  SalesBuilder's Call Me Now is a great example of the state of the market.

Other coverage:

• Search Engine Watch Forums thread
• Search Engine Roundtable: Google Launches Click to Call in UK
• Googlified: Google UK Lauched Click-to-Call
• TechCrunch UK: Google launches click-to-call in UK
• Unofficial SEO Blog: Google Click To Call Launched In UK
• Greg Sterling: Google PPCall in UK

The walkthrough...

1. Go to Google.co.uk

2. Search for jet2

You might see search results like this. See the ads on the right?

3. Click on the ad with the phone.

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Bill Campbell's post about Wall Street is baloney, of course. Kent says it well.

You state "Wall Street frowns on the eBay/Skype side of the partnership according to the New York Times." I read the article you linked ... it makes absolutely NO mention of the market's (i.e. Wall Street's) view of the Google/eBay/Skype collaboration.

The share prices are "factually" listed at the end of the article (without comment) ... as is customary. As for "doing the math," Google shares rose 2.0% and eBay shares rose 1.9%. The difference is statistically insignificant.

There may be a story here, but this article, and yesterday's share movement for Google and eBay, isn't it.

Investors didn't even notice the Skype side of the deal. Why would they? Any benefits won't affect eBay Inc. cash flow for years. Meanwhile, they had lots of other news to consider. For example, the advertising part of the deal, extending Google Inc.'s ad distribution onto eBay sites mirroring the previous Yahoo!-eBay arrangement, and the Google Office Suite that positions Google more clearly in opposition to Microsoft. Both bits of news would clearly have more immediate effect on valuation of the business.

As for the Click-to-Call service, there is both an opportunity and a risk. The opportunity is to create a form of paid advertising with greater merit than page views or even click throughs. Web advertisers find page views a less relevant metric than ever. But someone actually talking to a sales person, well, I have a pretty good chance of converting that lead into a customer. It's the difference between driving by a car dealership and walking in the door to speak to a hungry rep.

The risks are equally huge. Click-to-Call assumes:

1. Potential eBay and Google customers have compatible smartphone software or hardware. eBay is now rolling out Skype to its buyers and sellers, starting back in June at the eBay Live conference. But uptake by the U.S. and Canadian public is very slow. Meanwhile Microsoft, Yahoo!, AOL, AT&T, Earthlink, Comcast and others are promoting their own VoIP enabled messaging clients, fragmenting the market.
2. They are willing to use PCs to talk. This is a new behavior. You can't assume customers will change their behavior in ways you approve. What percent of Skype users try voice once and never use it again?
3. Sellers are able to buy the right leads. Talk isn't cheap and margins are thin. eBay started by sheltering sellers from buyers; transactions just happened. Now sellers compete for buyers, augmenting eBay's natural traffic with their own off-eBay advertising and promotional strategies. For c2c, sellers must segment online prospects by interest in specific products. They must also decide which prospects are worth talking to. This is an auction-by-auction calculation and so far there is too little information to make an informed choice, especially for high volume sellers.
4. Sellers are able to answer callers. Most sellers aren't ready to talk to dozens or hundreds of callers a week. Some will need to set up phone-oriented CRM software, hire people or a service, and develop new call center management skills. They will learn to be agreeable and available at their callers' convenience instead of their own. These are new competencies, not lightly adopted and prone to misstep.

These are not fast, sure, or cheap to fix. But they can be managed. eBay and Skype know the problems and have started to address them. Skype education programs for eBay buyers and sellers is a start.

eBay's click-to-call service is FUDware today, the variation of vaporware that spreads fear, uncertainty and doubt among potential rivals. Nothing new for those who follow eBay financial conference calls. To get a payoff on c2c, eBay and Google will need to execute on branding Skype in the US and making the unnatural act of using your PC as a phone an everyday affair.

Jon Arnold is a Toronto-based communications consultant and IP blogger who does a weekly podcast on the Pulvermedia Podcasting Network with IP industry players. Jon and I also share in interest in the Boston Bruins, largely because he originally came from Boston and because my neighbor's son was one of the high points of what was a "down" season for the Bruins last winter. However while Jon is a dyed-in-the-wool Red Sox fan, I still maintain my loyalty to the Toronto Blue Jays when it comes to baseball. So we have our interests both outside and inside the VoIP arena.

Last week Jon invited me to participate as the guest on this week's podcast. Recorded late yesterday it turned out to be timely as a large portion of the podcast covers the Google-eBay announcement which resulted in several posts, not only on Skype Journal (here, here and here) but also by many of the VoIP bloggers such as Andy Abramson and Alec Saunders.I agree with Mathew Ingram in that the Google-eBay deal may turn out to be more important for Google than the Google Office announcement.

You can follow up (with a link to the podcast) here. It's been twelve years since I did media interviews as President of the then newly formed Canadian Alliance Against Software Theft. So if it sounds a bit rusty, it's just my nervousness associated with my first experience with doing a podcast and yet my sensitivity to try to keep a freely flowing conversation.moving along.

Thanks again to Jon for the invitation to participate.Give a listen (iTunes Player recommended) and hope it can provide some additional insight into where Skype is going.

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Skype gets hooked on Google. What's all this mean?

As Jaanus Kase of Skype puts it, "What does all this mean in detail? We'll see next year, as testing of all these new joint initiatives is said to begin in early 2007. For now, one thing is sure -- great companies working together is always exciting news."

Yes, the Google-Skype story feels very upbeat. It is a tremendous opportunity to monetize their huge customer base. This is bigger than SkypeOut and very scalable.

So do we have to wait till 2007? Will there be no sex? I doubt it. The new Skype-enabled Google Tool Bar is available in the 2.6 Preview Release Jaanus blogged about here.

Big Disclaimer

The formal press release ended on what seemed to me to be an unusual disclaimer,

"At this time, eBay does not expect this agreement will have material impact on its financial statements in 2006 or 2007."

Really? No sex? Let's see later today how Wall Street votes. eBay shares should, in my opinion (just about worthless), get a big boost.

To find out I talked with Don Albert, the North America General Manager for Skype. Don told me:

'Click-to-call' is something we have not done before. It is brand new. We are really excited by it. It is a new revenue stream for eBay it is just too early to predict financial impacts.

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In a press release issued this morning, Google and eBay announced an agreement which comprises "two primary components involving text-based advertising and "click-to-call" advertising functionality";.In the course of the press release there are several implications for Skype; however, let me draw attention to where Skype already has incorporated Google searches, namely, as an option in the search icon of the Skype Toolbar for Internet Explorer and Skype Toolbar for Firefox:

Other options in this Skype Toolbar's search element include Yahoo, Ask Jeeves, eBay and Shopping.com.

Lisa Leff at AP provides a good overview; combined with the press release we can see the following implications for Skype:

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