Tag Archives: social networking tools

The Fate of New Acquisitions: Whither or Wither?

By Jeremy Wagstaff

I’m writing this on a Windows PC using a great piece of Microsoft software called Windows Live Writer. And that’s only part of the problem.

As you no doubt know, Microsoft have announced they bought Skype, the Internet telephony company, for $8.5 billion. You’ll have to look under a lot of stones to find someone who thinks this is a good deal for Microsoft. Skype made $20 million last year on revenue of $860 million, posting a net loss of $69 million because of interest expenses. In short, this is not a company about to fill Microsoft’s coffers with dosh.

Whenever a big company goes on a buying spree I reach for my gun and head for the hills. These things never end well. A few weeks back we heard about Cisco buying and then killing Flip, those great little pocket cameras so simple to use people actually use them. I used to keep a list of these acquisitions, because I naively used to think that a big company buying a smaller one was a happy ending. I’ve nearly always been proved wrong.

Yahoo bought a browser bookmarking service called delicious that they parked in a siding until eventually selling it, a few weeks back, to someone who actually seems to understand the product. In fact a fun game is to quiz Yahoo PR people about the state of their company’s lesser known products and count how many “I’ll have to get back to you on that one” responses. I’ll give you a head start: Ask about Konfabulator, a sort of desktop widgets program which was excellent, but has quietly withered on the Yahoo vine. The developer’s blog hasn’t been updated since 2007.

Yahoo are probably the most egregious offenders but everyone does it. Google boughtJaiku, a twitter-like service that was better than twitter, but have done precisely nothing with it. Nokia bought dopplr, a social networking service for people who travel, and have done precisely nothing with it. (Product blog hasn’t been updated since September 30 2009, two days after Nokia bought it.)

So why do it? Buying companies makes people money, somewhere in the chain. It disguises ineptitude, or it is what is called a defensive play: I’ll buy it so you can’t.

The Skype deal neatly illustrates Microsoft’s problem is a simple one: It lacks direction. It doesn’t seem to know what it wants to do so it creates a new brand, a new product, a new division—often out of an old one. The product I’m writing this on is part of (frankly the only good part of) the Windows Live array of products—whatever that is; I’ve never quite figured that part out. (Type live.com into your browser and something different seems to happen each time; now it’s a sort of stream of consciousness page that’s more of a stew of Microsoft’s various offerings. ) Windows Live Writer was part of a product Microsoft bought called Onfolio; it has survived, somehow, though few people seem to know about it outside a very narrow group of enthusiasts.

And here’s the rub. Microsoft has no idea what to do with all these products it spews out or inherits, so it forgets about them. Most of you know that Hotmail and Bing are Microsoft products. But how about Lync? Or Kin? Anyone remember Zune? And what is the difference between Windows Live and Windows Live Essentials, for example? Or Windows Messenger, Office Communicator, Windows Live Messenger and MSN Messenger? Or Sync Center, Live Mesh, SkyDrive, FolderShare and Live Sync?

No, I’m not sure either.

Go to Windowsmarketplace.com and you’ll be told that “Windows Marketplace has transitioned from an ecommerce site to a reference site.” Confused yet? Go togetpivot.com, the website of what was billed a year or so back as “the most ambitious thing to come out of Live Labs” and you’ll get directed to, er, bing.com. Live Labs itself was disbanded a few months later. Now old links to Live Labs go to bing.com, which was where those members of the team ended up that didn’t quit. Out of the 14 projects initiated by the lab counted on Wikipedia, all but five are dead. Of those, only a couple seemed to still have any life in them.

When a company diverts a link from one of its own press releases barely a year old to, effectively, nowhere, it’s a pretty good sign that’s where the vision has gone too. This was after all Microsoft’s big research team—at least the most exciting one (Microsoft spends about $9 billion per year on R&D, according to Jean-Louis Gassée, a French analyst.) Microsoft products seem to get lost in a labyrinth of confusing branding, branching and segmentation tunnels, confusing and demoralizing the user to the degree they throw up their hands and go buy a Mac.

Not I. I know about Microsoft products because I use them. A lot. And the more I usemy Mac the more impressed I am with parts of Windows 7.  The problems with the operating system could be fixed in an afternoon: Watch a couple of users try it out and then ask them what was missing. Build those bits into a new version, ditch the trash and you’re good to go. (Some clues: something like iPhoto but better than Photo Gallery for handling photos. Something like iMovie but not Movie Maker. Apple’s products all come pre-installed. Microsoft’s are a confusing, lengthy and intrusive download and reboot away. Oh, and something half way between Microsoft Word ($200 or thereabouts) and the freebie WordPad; Apple’s equivalent Pages costs $20. It’s not as good as Word, but it’s a 10th the price.)

So where is Skype going to fit into all this? Well, the problems start with Skype itself. Since eBay bought it in 2005 it has been something of an orphan, passed around with little idea of what its future might be. It wasn’t always thus. I drank the Kool-Aid back in 2005, and thought like others it was going to change the way we communicated and did business online. I joined the vision of a world where everyone from clairvoyants to business consultants (ok, that’s not such a wide swathe) would offer services over Skype. Audio, text, video, you name it.

That hasn’t happened. For most people it is just a way to avoid paying rip-off phone charges and do the odd video call. Everything else is marginal. The most recent Extra—the add-ons that were supposed to be part of this new Skype ecosystem–is dated January 2010 and that’s just an update on an old program. One guy I interviewed in 2005 had set up a network of 30,000 experts in 50 countries on a website called Jyve.com that was going to piggyback this new Skype-connected world. He’s nowhere to be found now and Jyve.com is an empty page.

eBay didn’t get it, of course, but that’s only part of the story. About a year ago I wrote a piece calling on Skype to realize that it was at heart the world’s most effective social network tool. I wrote:

If Skype dovetailed with Facebook, twitter and LinkedIn it could position itself at the heart of social media. After all, it’s probably the only application that most Internet users have installed, loaded and [have] active on their computer. Unlike Facebook et al, Skype is there, right in the moment. It’s the ultimate presence app.

Indeed, it’s much more like an instant Rolodex (remember those?) than all the other networking services we use. If I want to contact someone the first place I check is Skype—if they’re online, what’s the point of contacting them any other way?

In other words, Skype offers a granularity that other social networking tools don’t: Not only is it comfortable with one to all (the status update message), it’s also comfortable with the one to several (add people to a chat or call), it’s also great at instantly connecting one on one. You can even reach people offline via it, if they have call forwarding enable, or you have their SMS details stored.

No other social network offers that.

Skype sits on every computer (and most smartphones.) By definition all the people the user is connected to are people he wants to actually communicate with—rather than just ‘friending’ or ‘ ‘connecting to’. It’s an easier way to share stuff—photos, files etc–and it’s now pretty easy to set up groups and stuff (In Afghanistan we used it as a way to share security updates; people could see the information in real time or catch up on messages when they got online. In Singapore I use it to talk to my students via teams and the whole class.)

Unfortunately Skype may have read my piece, or they may not. Either way, they half went down this road by trying to throw in lots of things that people didn’t need—including an annoying Firefox extension that turned every number on a webpage into a phone number, including bank accounts. Now Skype is so big and clunky it crashes on my Android phone and my Windows computer.

But in a perfect world Skype works. It’s simple. For many people it’s a telephone. For others it’s a presence indicator: I’m online, I’m not. My computer is connected to the internet (green button showing) or there’s a problem with the connection (grey downer button showing). For some people it’s become a very useful way to organize teleconferences (though don’t talk to my colleagues on an Indonesia project about this; they spend hours trying to get a connection going.)

Skype wasn’t first but it worked better than others, which is why everyone has a Skype account, and why asking for someone’s Skype ID is almost as natural as telling asking for their email address.

But unfortunately I’m not sanguine about a Microsoft/Skype future. Either they integrate the technology behind it into their other smorgasbord of products, in which case you wonder why they didn’t develop the technology themselves, or they leave it as it is. Either way it’s not good: While analysts have focused on how Skype might fit into Microsoft’s non-PC products like Kinect and Xbox, it’s hard to imagine that Microsoft won’t try to shoehorn Skype users into one of its misbegotten sub-brands, losing non-Windows users along the way.

Skype Messenger anyone? Live Skype? Skype Office? Skype Explorer? I shudder to think what will happen. I may be wrong—I’ve been plenty wrong about Skype before—but my fear is of a Skype that gets as clunky and overloaded as MSN Messenger, as bewildering as the Live family of products, as impossible to separate from other Microsoft products as Microsoft Word, as doomed as Outlook Express and anything from the Live Labs mob.

I do hope I’m wrong because of all the networks I have on my computer and cellphone, Skype is still the one I actually need. Skype: whither or wither?

Skype’s New Dawn?

We talk about Facebook, twitter, MySpace and Friendster as the big social networks but we keep forgetting one that is far bigger than that: Skype. This from a Bloomberg piece on Skype’s vacillating fortunes:

Skype has soared in popularity since it started in 2003 and has about 548 million users worldwide—more than Facebook, MySpace and Twitter combined.

Pretty much everyone I know is on Skype—more so than Facebook—and their investment in it is greater: They had to figure out how to install software, set up a microphone, a webcam, create an account, and maybe even buy credit. More importantly, they can actually estimate its value to them, by counting the money it’s saved them, if they want.

We all know about eBay’s missteps with Skype over the past few years and the software could definitely do with a total overhaul. But now there are new faces involved—including Marc Andreessen, who knows a thing or two—I foresee huge opportunities ahead.

One is a route they’re clearly going to take: the enterprise. That makes sense, but it also means damping down Skype’s huge social reputation, since companies will tend to think of it as at best a frivolous time waster for its employees, at worst a security threat.

Still, it would make lots of sense to go that route, possibly creating a separate sub brand of Skype that built a wall between the existing network of users and the enterprise one.

But I think there’s a much bigger opportunity out there, one that was talked up back in 2005 but never left the ground. That was leveraging the free connectivity to allow an eco system of services to develop atop of it.

Consulting, translation, education, all that kind of thing.

This never really took off, but I think that may have had more to do with its execution, and the fact that the world wasn’t quite ready. Most people signed up to Skype for the free calls. They weren’t really interested in more than that.

And yet since then Facebook and other social networks have. (Taken off, I mean.) Doing, actually, pretty much the same thing. Setting up an account, adding your buddies to it, and then communicating.

But the potential of that network was never exploited. A few memory-hogging applications and a few desultory ads have been pretty much it.

Maybe now Skype can make the most of this. One is the eco system of services I mentioned, but there are also location-based opportunities, mobile opportunities, video opportunities.

If Skype dovetailed with Facebook, twitter and LinkedIn it could position itself at the heart of social media. After all, it’s probably the only application that most Internet users have installed, loaded and active on their computer. Unlike Facebook et al, Skype is there, right in the moment. It’s the ultimate presence app.

Indeed, it’s much more like an instant Rolodex (remember those?) than all the other networking services we use. If I want to contact someone the first place I check is Skype—if they’re online, what’s the point of contacting them any other way?

In other words, Skype offers a granularity that other social networking tools don’t: Not only is it comfortable with one to all (the status update message), it’s also comfortable with the one to several (add people to a chat or call), it’s also great at instantly connecting one on one. You can even reach people offline via it, if they have call forwarding enable, or you have their SMS details stored.

No other social network offers that.

Of course, Skype has some ways to go to do this. The interface needs a serious rethink: It looks so 2000s.

It needs to add—or reintroduce—lots of features, like individual invisibility (being invisible to some people and not others), to encourage those who either don’t have it running or have themselves permanently invisible, to keep it there in their system tray.

It needs to lower some of its walls to allow interoperability with other chat clients, like Google Talk, and with services like Facebook and LinkedIn. Indeed it should throw open all its doors, so I can look up my friends on the Skype app and communicate with them using any or all of those services. Skype is the app is the network.

Then we might be back to those heady days of 2004-2005 when Skype looked like it was not just going to be the end of ruinous IDD phone monopolies, but that it might herald a new era of networking.

Another Birthday, Another Batch of Birthday Spam

bday  

It’s that time of year again. The big old 3 0, or however old I am. And the first where I’ve really felt the power of social networks. Not in a good sense, though. Sure, it’s been nice to get some greetings from ‘loose ties’ in my online world who spotted, in one social network or another, that today is my birthday. Thanks, Graham and co. Really.

But all the other stuff? From websites I signed up for and, in a moment of madness, entered my real birthday (tho usually, the wrong year: 1900. That should mess up their stats.) There’s something rather sad about finding yourself getting more email greetings from services you’ve signed up for than from real people. How pathetic is that?

And not just for my own miserable existence. How is it that companies think that folk like me either a) enjoy being wished a happy birthday by some automated computer script, or b) are ready to believe that employees at the company involved sat around and thought “Oo! It’s Jeremy’s birthday today! We should send him something!” Either way I come across as pretty stupid.

Which I’m not necessarily disagreeing with. Hey, I’d rather get birthday spam than nothing at all. And when you get to my age either your friends have long given up on you or think you’re too old to get real birthday cards with little badges stuck on them you can wear. Message to friends and Auntie Mildred: You’re never too old to get cards with badges on. Never.

Of course, social networks aren’t all bad. At least with services like Facebook you can send birthday greetings and be reasonably sure they actually arrive. Which is more than you can say for those e-cards. Those silly email services where you choose the least lame ‘card’ from a very lame selection and whisk it off, feeling you’ve done the best you can for your buddy/spouse/mother. Awful. Thankfully, no-one sends those anymore, knowing that either they’re so lame they were losing friends/spouses/mothers or that most of them wouldn’t get through spam filters.

Anyway, we should be smarter than this by now. I’d love to see social networking tools used better to celebrate birthdays. We all know we don’t actually remember people’s birthdays; we remember to put them into some diary or calendar so it reminds us. Preferably before the day itself. Technology has just made that more efficient. But it’s lame to then just turn what is supposed to be a very personal experience into a generic one by automating birthday greetings. Who (besides me) wants one of those?

Social networking tools should offer users the chance to opt out of receiving birthday greetings, or to receive them only from insanely attractive members of the desired gender, or automate a quick whipround so the birthday person gets a free year’s subscription or a real g-string or something. I don’t want to sound venal, but whoever enjoyed a birthday made up of only greetings cards or their online equivalent? Where, in short, is the loot?

Why can’t, for example, a mall recognize someone with a birthday has entered the building and offer them freebies and piped ‘happy birthday’ music through the tannoy system? Or car-parks offer free parking? Or banks extra credit? If these companies were sincere about wishing us a happy birthday, shouldn’t they put their money where their mouths are?

And, finally, a thought. Why, if I registered my year of birth as 1900 for these services, aren’t the companies either awarding me ‘oldest living customer’ badges, or sending someone round on my birthday to check I’m ok/still alive, or something? If they really cared, wouldn’t they make more of a fuss of their 107 year old customer?