Is Skype ready for corporate use?

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Skype, VoIP

ANALYSIS

With millions of users worldwide, Skype is arguably the most popular consumer-level voice over IP (VoIP) implementation on the planet. As of the end of last year, Skype, now owned by eBay, had more than 50 million users according to many reports — and more than 200 million downloads.

Most credit Skype with bringing VoIP to the masses. One big reason for its popularity is that it's freeware — at least, if you don't need to be able to receive calls from regular phones.

Is Skype just a toy for home users and techie types who don't want to pay for a "real" VoIP service, or does it have something to offer businesses? Let's take a closer look at the peer-to-peer VoIP software from the same people who brought us the KaZaA file-sharing program.

What's different about Skype?
In its original incarnation, Skype is a type of "soft phone" — it runs on a regular PC on top of a standard operating system. (It's available for Windows, Linux, and Macintosh OS X.)

However, there are dedicated mobile Wi-Fi phones available that will let you make Skype calls without a PC (but not without an internet connection). One example is the Netgear Skype Wi-Fi phone.

Most commercial VoIP services operate on one of two standard protocols: Session Initiation Protocol (SIP) or H.323, which are standards defined by the IETF and ITU. Calls typically go through a call server, which manages the calls.

But Skype is a little different: it uses closed, proprietary protocols and peer-to-peer technology that depend on "supernodes". According to some analyses, Skype's P2P network is also fundamentally different from other P2P networks, but — not surprisingly — it's similar to that of KaZaA, which also uses the supernode structure.

Skype also differs from other VoIP services because it provides instant text messaging (IM) and file-transfer services — not just voice communication. With the free software, you can perform all these transactions with others who have Skype installed on their computers, and you can make calls to PSTN and cellular numbers.

However, you can't receive incoming calls except from other Skype users. To do that, you need to pay for the SkypeIn service, which is considerably less expensive than most VoIP services — coming in around $38 (£19.90) for a full year.

Skype features and concerns for business
Security is a big concern for businesses today, especially those in industries regulated under HIPAA, GLBA and other laws that require them to use measures to protect the confidentiality of certain information. Skype encrypts all voice traffic with AES, a strong encryption standard adopted by the US Government in 2002.

Many VoIP systems suffer from implementation difficulty because their protocols don't play well with firewalls and Network Address Translation (NAT) devices. But Skype works behind NAT and firewalls.

Skype is also available for Windows Mobile devices, such as the Samsung i730 Pocket PC phone. If you have an internet connection, you can use it to make calls instead of using up your allotted monthly mobile phone minutes. With a SkypeIn number, you also get a voicemail account, where callers can leave messages if you don't answer (including when your computer is off or disconnected from the internet).

Businesses will like the fact that you can make outgoing calls to other Skype users anywhere in the world at no cost — and that includes video calls. You can even have a conference with up to four people at no cost, and you can engage in group chats with up to 100 people.

Through the end of 2006, you can also place outgoing calls to landlines and mobile phones in the US as part of the free service. If you pay for…

Talkback

I don't know a single person in the corporate world that will take a blocked or non-identified caller. Too many sales reps trying to eat up your day. If I don't know the caller, I don't take the call...and I'm not the exception.

Gizmo Project is a far better corporate application.

Hettman 22 November, 2006 19:50
Reply

Some companies already use it.

I worked in a Telecommunications company (that I will leave nameless) that sold Voip services and they still used it. In that case it was soley used for it's excellent typed messenger functions and unique history features (e.g. you had access to every conversation you ever had with a contact even if you logged in on a different pc - this feature is optional but is on by default). The file transfer facility also overcame firewall issues by using relays which was great.

So, can it work for business use - YES.

Although this example was not using the VOIP part of the software I do use it for personal use both at home and work and would say that there isn't much holding it back from being used as a corporate tool.

However, I don't belive it cannot be used as the sole voice system yet due to the quality of voice calls in some cases being noticeably choppy although in most cases the call is fine. In addition to this if it is running on the same PC as you use for your regular work use of intensive applications can interfer with Skype's performance. Also it is putting all your eggs in one basket as if your PC goes down so does your telecommunications - you won't even be able to call tech support to ask for help! I have been using skype-in to enable people to call me from a landline for a while and this seems to work flawlessly and even redirects to my mobile when I don't answer the call.

I haven't noticed caller id issue and as where I work now I don't use skypes voice features I haven't checked this out yet but on my PDA when I get a call and the name is not in the address book I think I see the telephone number depending on the country they are calling from.

David Long 23 November, 2006 12:18
Reply

It's important to note that this industry is still in its infancy, however because of the size and scope of Skype WorldWide, it has the best chances to become the golden standard of VoIP for Business Use.

Most would agree, there are other things such as language barriers that have been limiting International Trade in general. With the current release of Skype 3.0 Beta for Windows it is now possible for Skype users to translate Skype chats using 38 language pairs.

The average business most probably is paying way too much for supplies or services. In most cases it is hard to determine this if you can't speak the language of potential suppliers for goods and services that can trim your bottom line and increase your profits.

Even all the "First Contact" predictions of how beings from other planets would start communications with us have never suggested it would start with a phone call! So, businesses should not limit their queries to phone calls, you might not get the best prices that way.

For more information on using this new Extra for Skype please <a href="http://testing.onlytherightanswers.com/modules.php?name=News&file=article&sid=55">Click Here</a>

ZOverLord 24 November, 2006 05:42
Reply

you must work in a VERY small company.

I dont know many companies (even small tiny ones) where there is someone who is important enough to believe that they can ignore a call because they dont recognise the number.

Most of them have secretaries who filter the calls for them so they never get a chance to see there is no number, from 5 people companies up to 500 people companies. So that is a totally null and useless post!

351668 24 November, 2006 16:04
Reply

Disclosure : I work for a VoIP SP.
Confession : I have HUGE respect for what Nikalas and his team have achieved.

but... the more I work in telecoms and the more I have to do with business customers, the more I realise that what customers want is good basic voice, first and foremost, at a reasonable price and they want service. Plain old good service. Like you used to get at the greengrocer?

That is something Skype is going to battle to achieve imho. Customers they will continue to have, but business customers who are fiercely loyal to them? I have my doubts.

DaveG
www.hittingthewire.co.za

daveg 24 November, 2006 18:29
Reply

> So that is a totally null and useless post!

So that is a totaly not-null and useness post!

Because Gizmo is connected to the world of VoIP, Skype is connected nowhere!!

John

johan131214 12 December, 2006 14:29
Reply

Hi, we noticed that Skype could not manage caller-ids, too, and it was a pain to identify who is calling.
So we did that: MasqueNumber.com.
You identify people by the number they use to call you.
Even if there is no regular caller-id, you just know which category of persons is calling, private, professional, spam, the school of your kids, etc. So you can choose the level of priority of the call.

And you can choose to forward to voicemail by time of day, very convenient when you don't want to be woken up in the middle of the night at the other side of the planet.

Tell us what you think...

- Del

MasqueNumber 15 March, 2007 20:36
Reply

I know this is a (really) old thread, but here goes.... Are there any concerns with using Skype in the business environment of sensitive data/information/conversations being stored on non-company computers? In my industry, IM to the outside is frowned upon (read: not allowed) due to the inability to include those conversations in any sort of e-discovery. Are there any similar concerns with Skype?

kbosscawen 23 March, 2010 20:55
Reply

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