Essay about Skype Case Analysis

1204 Words Sep 8th, 2013 5 Pages
Meredith Currin
October 30, 2012
BADM 468
Skype Case Analysis

(1) VoIP represents a great opportunity for telecom service providers to develop flexible and responsive offerings. These services can be developed as premium services by fully using the strengths of the Internet or internal intranets. These services can also be developed to use efficiencies that the Internet and intranets offer that traditional networks and network providers do not. However, it is not all too easy. While current and potential telecom service providers can build imaginative offerings and business plans; they must still have keep mind the competitive environment surrounding the VoIP market. Skype’s VoIP industry has a few competitors such as Comcast
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As for profitability with VoIP, it does not have trouble with profit because of little competition and being successful in the long run it can obtain profits with little or no worries.
(2) VoIP services continue to penetrate the market. A recent META Group survey found that almost 90 percent of large international companies plan to use some form of Voice over IP (VoIP) within three years. The driving force behind the numbers is convergence: both technological and organizational. From a technology perspective, anything IP is perceived these days as "new and improved." The Internet is driving everything, as it has since the mid-'90s, and VoIP is the next big thing. All the hype aside, VoIP really is a good idea -- many aspects of the technology are well proven, and the long-term cost savings can be substantial. More importantly, the operational benefits to the business can be impressive which leads to the organizational part. It used to be that the people who managed the telecommunications network reported to the facilities department. But now, with its strategic value widely recognized, telecom is more likely to fall under the auspices of the IT department, creating a cultural merger between the voice people and the data people. The resulting common ground is prime real estate for convergence, as both of these groups recognize there are gains to be made in merging voice and data.

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