Before anyone gets their pantywaists in a bunch, look at things this way. Outside of companies like Cisco running the hardware/software combinations in the IP/telephone space, who is THE MAJOR NAME in the Internet phone world? Skype. Microsoft knows this, and with Ebay having wanted to sell off Skype for a while now, it seems like the only buyer with any good reason to buy has stepped up. Other key potential buyers included Facebook (WHY?) and Google (it would make sense for them as well, buy they already have a client ‘Google Talk’ which has failed to gain any footing). This deal is about one thing… simply to keep Skype out of the hands of competitors like Facebook and Google. The next thing you might be asking yourself is the price… $8.5 billion in straight cash. Does it make sense? Why yes, it does. Skype has a whole, the branding, VoIP technology, customer base, and quite simply the *possibilities* behind the acquisition far make it worth the investment. This is also one of Microsoft’s biggest acquisitions in it’s history as a company.

So where does Skype go from here? Earlier today as officially announced by Skype/Microsoft – (quote courtesy of Neowin.net)

Microsoft plans to use Skype, which has 170 million registered users, for many of its products, saying in its press release, “Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities.” Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.” The deal will turn Skype into its own division inside of Microsoft. Skype’s current CEO Skype Tony Bates will be the president of the new Microsoft Skype Division and will report directly to Microsoft CEO Steve Ballmer. Ballmer is quoted in the press release as saying, ““Tony Bates has a great track record as a leader and will strengthen the Microsoft management team. I’m looking forward to Skype’s talented global workforce bringing its insights, ideas and experience to Microsoft.”

Skype will continue to operate as its own unit within Microsoft. They won’t be absorbed into any other unit as previously feared. Microsoft will continue to (for now) support Skype for non-Microsoft platforms (Android, Mac OS/iOS, GNU/Linux, etc.) as well.

The exciting part of this deal is the opportunity to integrate Skype’s technologies with Microsoft’s business and consumer products as they mentioned in that quote. Skype could be integrated into Microsoft’s Windows Live Messenger program, or on your Xbox or Windows Phone having Skype integrated at the system level rather than an individual application would create a very seamless experience. For enterprise products such as Lync or Outlook, it would be a very similar situation of seamless integration unmatched by other companies with competing products.

With Microsoft’s EU Antitrust shackles to come off later this month, it will definitely be an interesting time for Microsoft. Having been shackled with restrictions by their EU Antitrust ruling, they’ve become less of the powerhouse they were in the 90s. It’s time for Microsoft to deliver that heat to the competition once again, and I think the purchase of Skype is one of the big moves to start that fire once again. With Microsoft’s blockbuster releases of Windows 7, Xbox 360/Kinect, Internet Explorer 9 and other stellar products, the future is looking good.