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Skype is certainly a major symbol for the IP communications market and although it plays in a niche in the market - consumer VoIP/Video, it is now a household name and having it entangled in legal limbo does it or the industry no good. You may remember that the company was in the process of possibly going IPO and then eBay decided to sell it. But there was a sticking point consisting of Skype's p2p technology not being theirs and the original founders, Janus Friis and Niklas Zennström playing hardball to cease Skype from working until they got paid what they believe they were owed.

Thankfully the companies settled and as a result eBay announced that the investor group led by Silver Lake, which had previously entered into a definitive agreement to acquire a majority stake in Skype from the company, has reached a settlement agreement with Joltid Limited and Joost N.V. that gives Skype ownership over all software previously licensed from Joltid and ends all litigation currently pending against the investor group and eBay at the closing of the acquisition.

As part of the settlement agreement, Joltid and Skype founders Niklas Zennström and Janus Friis will join the investor group, contributing Joltid software and making a significant capital investment in exchange for a 14 percent stake in Skype. As a result, Silver Lake and other investors including Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB), will together hold 56 percent of Skype and eBay will retain 30 percent. As previously announced, eBay will receive approximately $1.9 billion in cash upon the completion of the sale and a note from the buyer in the principal amount of $125 million. The deal, which values Skype at $2.75 billion and is expected to close in the fourth quarter of 2009.

I agree with Skype investor and Netscape founder and Ning co-founder Marc Andresen that Skype is one of the most important companies on the Internet.

Now let's see what they can do with this company which has massive potential to keep changing communications and highlighting how IP can disrupt an industry and shake it to its core. One area of exploration will hopefully be deep integration between Ning and Skype allowing the social network building service to leverage real-time communications more effectively. How much stickier will online communities be when participants can see each other and speak immediately. Does a Ning/Skype combination become the largest real-time directory in the world?

Now I really can't wait to hear Skype's Chief Strategy Officer Christopher Dean speak in a few months at ITEXPO in Miami.

Today is a big Twitter day for me. You may or may not realize that my Twitter feed is automated meaning my blog posts just convert over to Twitter posts. I have set up my account to get an email whenever a new person follows me. At a certain point the follows were becoming a distraction so I have a rule which forwards all Twitter follows into a folder which I go through when I have a moment. Today is that day and I will likely look at 50 of them or so.

The reason I look at all my followers is that many of the people following me work for companies which may make for good stories, people to invite to speak at an event, etc.

To me, Twitter is just another channel for my blog to live on - like RSS, Facebook, LinkedIn, etc. I have a number of people who would rather follow me in this manner - and that works for me.

Well, back to my Twitter account.

We are thrilled to announce a slew of top notch keynoters for the upcoming ITEXPO which takes place in Miami, FL Jan 20-22, 2010. I will share them with you by first explaining why they were invited:

A keynote picture from ITEXPO East 2009 in Miami

Open Source

One of the biggest trends in tech this last decade has been open source and while you may not know this, I was a UNIX (the Linux precursor) system admin at TMC back in 1982 or so and I am a big fan of this OS which is reliable, stable and the strong basis for cost-effective solutions in a number of fields. Without a doubt, Asterisk is the major force in the open-source communications space and as such, Digium's CEO Danny Windham (the company behind Asterisk) was the perfect choice to address the audience of businesses, carriers and resellers. By the way, Digium Asterisk World (DAW) is collocated at this show and I hear it just sold out of exhibit spaces and my team is looking for ways to get the waiting list
of companies into an expanded DAW pavilion on the exhibit hall floor.

Digium Asterisk World Photos from ITEXPO East 2009 this year

Google Voice vs. AT&T

Google Voice has been one of the most disruptive influences in telecom these past years and this service has single-handedly become a point of public argument between the search leader and Apple and AT&T - with the FCC acting as referee of sorts. The argument revolves around net neutrality - the concept that carriers will apply discrimination to traffic on their networks based upon traffic, application type or source. Google obviously wants their services to run on any network in an unencumbered fashion while AT&T has said since 1995 when they were SBC that they want to charge for their pipes. AT&T actually then pointed out to the FCC that Google Voice does not terminate all calls on its free Google Voice service meaning it is not adhering to the principles of net neutrality. The reason of course as Google points out is traffic pumping and bizarre intercarrier compensation rules which allow some rural carriers to charge exorbitant rates for calls terminating in their areas. Craig Walker founded Grand Central, the company purchased by Google and the basis for Google Voice and as the Group Product Manager for the Real Time Communications Group at Google, he was a natural person to invite to speak with us at the show. It seems his accomplishments have unleashed a firestorm of controversy which should hopefully clean up some of the ugly mess that is telecom policy and regulation.

Exhibit hall pictures from ITEXPO East 2009 in Miami

HD Voice/SIP and Video

Another major trend in our markets is that of HD voice, video adoption and of course SIP endpoints. AT ITEXPO last year, we had the first panel in the world focusing on HD voice (video) and since then I am excited to see other conference organizers throwing their hat in the HD ring. A major player in all of the above spaces is Polycom and they have done an amazing job of working with disparate vendors on interoperability issues which has moved the market forward by reducing the friction caused by proprietary endpoints. In the world of video, the company has been a major player - developing telepresence systems all the way down to video phones. To get a bead on where this market is heading we invited Polycom Co-Founder, and the CTO of the Voice Communications Group Jeff Rodman to join us as a keynoter.

HD Voice Panel I moderated from ITEXPO East 2009 in Miami

Skype

No matter how you break out the IP communications market, Skype is likely a factor in changing the market in a pro-consumer manner. By giving away global voice calling with quality which far exceeds the PSTN, they have disrupted while getting users used to better voice quality. On top of that, they give away video calling as well, making them a company which excites consumers and scares carriers and anyone else who dares compete with their network of hundreds of millions of subscribers.

Interview I had with Skype's Ian Robin

Skype has been making a major push into the enterprise and is working on enhancing relationships with carriers as well. They are even looking for channel partners who can share in the newly created revenue streams from a number of products like Skye for SIP. When you take all of this into account, it does make great sense to invite Skype Chief Strategy Officer Christopher Dean to speak, doesn't it?

Smartphones, Wireless and Smart Ecosystems

One of the biggest trends in the world of communications is smart devices and ecosystems. What is an ecosystem you ask? Well it is a group of companies who develop products which work with a product or service offered by a host company or companies. The iTunes App Store may be the best example but certainly Avaya's DevConnect or Cisco's Partner Programs are good examples as well. You may know that TMC has focused a tremendous amount of resources on educating the world on smart ecosystems via our new SPEC site. I truly believe ecosystems have a bright future.

In order to bring attendees up to speed on all these topics we invited two top keynoters to present on the matter. Sprint's Mathew Oommen is the vice president of device and technology development at the company and uniquely positioned to share with us his company's view on the future of wireless technology. Oh and by the way, be sure to check out my recent interview with Sprint's Wayne Ward who heads up the company's M2M activities (did I mention there is a collocated M2M conference at ITEXPO?).

To get a handle on wireless devices as they pertain to ecosystems we invited Brian Higgins the Executive Director for Ecosystem Development within Verizon Wireless to join us so we can learn where the company thinks the market is headed. Verizon has been very ambitious in its goal to develop an ecosystem of products and applications which interoperate in the hope of one-upping the iTunes App Store.

We continue to work to add fantastic new speakers to our roster and you can expect this ITEXPO to be the most comprehensive and educational ever and a must-attend. I personally hope to see you there.

Oh and by the way, we have secured great rates this year at the Loews Miami Beach Hotel - you can save $150/night if you book now - the rate is $249 vs. what is typically a $399 rate at prime season. There are many advantages to staying at the show hotel such as networking, etc - and I have always been a fan of the Loews. In fact I was a guest the first day the hotel opened about ten years ago or so.

Bill Gurley writes correctly that Google is positioned to take over the world. I am certainly paraphrasing and adding some personal bias - he describes in detail how the company invested great sums of money to assemble a superior turn-by-turn GPS database which includes a street view and in so doing is now able to take marketshare from competing mapping vendors by using advertising to subsidize the cost of acquiring this information.

Advertising revenue in fact will drive the company's operating system, software as a service and just about everything else.

As the company shares part of this revenue with partners you have seen wide adoption of Android by wireless carriers and no doubt hardware vendors installing the Google Chrome OS are next.

Expect the company to continue going after Microsoft products - by giving services away and supporting them through ads.

Any competitor which has an inferior ad network and generates less money from advertising (this is all of them) is pretty much domed.

The only way to stop the onslaught is to build a far superior search engine and hope the world switches. At this point the sheer marketshare Google commands in search allows them to utilize their massive database of user behavior as a massive focus group allowing them to improve by the second.

I just can't see anything stopping this company besides, a scandal, high level departure, illness or something similar. Even then, the company is a monopoly at this point and perhaps momentum will ensure their future success.

Is the company using its power in a way which warrants them being broken up by the DOJ? Possibly, but Google reminds me a heck of a lot of Wal-Mart as the larger it gets, the better consumers do. Giving away free GPS for example is a pro-consumer behavior and as long as the company keeps breaking into new markets and giving things away, it is tough to see how the Google could be considered to be harming customers.

Getting back to the headline of this article -- do I really think Microsoft is doomed? Yes. Immediately? Obviously not. But any time a company with a quality name in the market can make money while giving away good products which you charge for, you are done.

Just a kid, that's all I was in the early eighties in high school as I took a class in BASIC. I was always fascinated by all things electronic and whether it was video games or advanced scientific calculators, I couldn't get enough. At Westhill high School, they had a Prime minicomputer and it was on this machine where I was instructed how to program. I also had a Commodore 64 at home and with it I wrote my own video games at night and on weekends.

In the early eighties, Route. 128 in Boston was the stuff of legend... It is where all the minicomputer companies lived - Wang, Prime Computer, DEC and many others. Prime was my link to this area and it seems like it was yesterday when I wrote a math quiz program on the schools's minicomputer which I used to better prepare me for the math portion of the SAT. Today, Rt. 128 is a distant second to Silicon Valley in terms of technology and of course all the minicomputer companies missed the PC altogether and are gone.

If you are wondering why Silicon Valley took the lead over Boston, you may want to refer to this article from Vivek Wadhwa which discusses how the Valley follows a more open model where innovation is more readily shared with small companies and moreover spread through job hopping. In addition, he points out a book from AnnaLee Saxenian (which was published in 1994 predicting that Boston would be the loser in the tech race

Here is an excerpt from the article:

She noted that Silicon Valley had an amazing dynamism about it. There were extensive professional networks, job hopping was the norm, information was exchanged openly, and the culture encouraged risk taking. The Silicon Valley ecosystem supported entrepreneurial experimentation and collective learning. In other words, Silicon Valley was a very open network--a giant social networking site working in analog before the concept of such a thing even existed.

This organizational mechanism was in sharp contrast to that of Route 128. Dominated by large, vertically integrated, and secretive minicomputer producers such as DEC, Wang, Prime, and Data General. Technology, skill, and know-how were trapped within the boundaries of the large corporations.

The differences were evident at many levels: venture capitalists in Silicon Valley had deep roots in local networks and were far more nimble than their east coast counterparts; educational institutions and research labs in the West partnered with local startups as well as more established firms, while those in the East worked only with the largest corporations; and the meritocratic openness of Silicon Valley made it a magnet for non-traditional talent and immigrants.

By the mid-1990s the east had missed the shift from minicomputers to personal computers as the flexible Silicon Valley ecosystem sped ahead with innovation across a diversifying range of components and systems going from chips, routers, and application software to ecommerce and search engines. Today Silicon Valley is the leading location for cleantech venture activity, an area widely considered to be the next big value creation engine for the U.S. and the world.

Boston, however, is no slouch. The Route 128 community remains the second biggest in the U.S. in terms of venture funds committed. Boston has powerful research institutions, still, and lots of very strong companies. In some areas, such as biotech, Boston may even rival Silicon Valley. But overall, its pretty clear that the Valley has not only won but is racing further ahead.

Most entrepreneurs and engineers that come to Silicon Valley, come to experience this network and to embrace the culture it has created. That's why I came, too. Network effects don't just work for fax machines. But then again, most of them knew that intrinsically. University guys like me need to do a bunch of surveys to figure it out. They voted with their hearts and feet.

At this point the game is even tougher to win if you aren't in Silicon Valley due to the propensity for exit strategies to present themselves more readily where the acquirers are. Yahoo, Google, Cisco and Oracle are just a few of the companies responsible for billions of dollars worth of M&A dollars. And as this these companies have grown, they  have made so many millionaires that they in turn go out and launch new companies and/or invest in others which are nearby.

If you are looking for a lesson here it is that a company which mirrors Silicon Valley and is more open, flexible and shares information more readily will likely always beat the company which is inflexible and contains many silos.

I spent some time analyzing a Blackberry Storm 2 in a Verizon store in Norwalk, CT where I chatted with prospective customers as well as Verizon store employees and management. First the phone itself is improved with WiFi support, a capacitive touchscreen and worldphone support. I think typing on the device is about as good as it is on the iPhone at this point. Although a common feature of smartphones I really like the ability to go back to my last application. As you would expect the device is fine for applications like email where it does a good job of understanding what is typed and autocorrecting text, it still comes up short as a web browser.

Although faster than the previous device, the delay in browsing graphically rich sites and those with JavaScript continue to be its undoing (yes, JavaScript rendering is now faster -- thankfully) and it is evident that the mobile browser is the major Achilles heel for device manufacturers. They should all partner with companies like Opera until they figure out how to do mobile browsing correctly.

Prospective customers I spoke with were not extremely impressed by the device and most I spoke with were in the store to compare the phone with - you guessed it, the iPhone.

By the way, reasons given to me to not buy the iPhone include the AT&T network and the fact that applications like Loopt (the iPhone needs to allow background apps for it to function properly) and Blackberry Messenger don't work on it.

Store employees were eager to volunteer that Droid is coming out in a few weeks and is worth a look. They also mentioned that there was interest in the latest RIM phones and many are selling but unlike the rollout of the first version of this device, they aren't seeing the long lines. Then again, it was a cold and rainy day which could have been part of the problem as nearby Stew Leonard's, that world famous supermarket had half the normal amount of cars in its parking lot.

My take? People have already purchased their iPhones and other smartphones and if they weren't out in force today to see their Storm 2, they aren't coming out in force to see the Droid. Besides I haven't seen much if any consumer promotion for this gadget - could this be a sign of Verizon giving up and hoping for better results from the new Google Powered Motorola phone? If the Droid is the iPhone killer Verizon store representatives say it is, the death will be very slow as word of mouth and advertising get more people to trade up. Time will tell.

I really excited to speak at the Illinois Institute of Technology Rice Campus for the VoIP Conference and Expo 2009. This will be my first time to this event and interestingly the third time in recent weeks in which I am in Chicago instead of Vegas for a show. Maybe the city didn't get the Olympics but they certainly seem to have gotten all the shows - WiMAX World, Supercomm and now this event.

Getting back to my talk - I am moderating a Keynote Panel titled: Are the "Bells" ringing for Carrier VoIP? And my panelists include Carl Ford, Crossfire Media; Anne Lee, ALU; Gaston Ormazabal, Verizon and Henning Schulzrinne, Columbia University at 4:00 pm this Thursday 10/29/2009. I hope to see you there. Here is the schedule with my panel in yellow at the bottom.

Here is the website for details.

I wanted to alert my readers to some exciting news happening at TMC. As you likely know TMC is among a handful of media companies growing at a time when the media landscape is in dramatic decline. As you might imagine this growth is primarily online. Over the last decade and especially in the last few years we have focused on building online communities (Channels and GOCs) for customers who sponsor these areas as they rapidly attract focused decision-makers from around the world.

The visitors who come to these communities benefit from a massive amount of free content which helps them make informed purchasing decisions. For example people looking for products in Call Recording, Smart Data Centers, IP communications, HD Voice, Fixed Mobile Convergence or Next Generation Communications can come to the respective communities focused on these topics and have access to hundreds and in most cases thousands of TMC written articles detailing the news in their specific area of interest. Our business model is straightforward; aggregate massive amounts of focused and quality content using custom-built content targeting technology - make it relevant and pertinent so as to attract the right readers who need this information as they research the products and services they are looking to buy.

For our sponsors, these communities allow them to rank high organically on search engines to get their message out to a focused audience while simultaneously being able to measure the traffic to ensure they can justify their spend to the sales and executive management teams.

Basically, this suite of communities replicates the trade show model online and just like a trade show that attracts more attendees as the exhibitor base grows; the 120 monthly sponsored communities on TMCnet attract a massive audience which in turn attracts more sponsors.

In short, I am very confident we can continue to provide free quality content in all the areas we enter. Meaning while other media companies are beginning to charge for their once free content and many others are reducing their editorial teams, TMC is adding to its editorial, sales and marketing teams as we have a model which works exceptionally well for our readers and sponsors.

We are growing our team as we enter a slew of new markets with our business model of providing laser-focused content - backed by over a decade of proprietary content targeting technology; essentially building targeted online communities which rank high on search engines as they attract large amounts of focused traffic.

Here is my quote from a press release we put out today mentioning the hire of a brand new position - VP of Business Development. Matt Weiner is filling this position and his background of working for Penton and Yahoo! make him a good fit for the position."Over the last decade, TMC has invested in the technology and people necessary to build a next-generation media company which creates communities online, in-print and in-person," Tehrani continued. "By providing our audience with top quality news, training and information, we have attracted global purchasing decision-makers to our communities. As TMC's global communities have increased in size and quality, they have attracted hundreds of advertisers and sponsors who receive regular measurable results for their marketing and SEO budgets. Our future strategy involves continuing to build communities which draw large amounts of targeted traffic as we continue to connect buyers and sellers -- and adding Matt to the team is an integral element of that strategy."

Aside from Matt, we have added a number of other positions and just as importantly we continue to ink partnership after new partnership as we enter new spaces where we leverage our community building engine in combination with the thought leadership of individuals and/or corporations in new markets.

Thank you for continuing to support our rapid growth - thanks to our readers and existing and news sponsors - we look forward to helping all of your companies grow with ours.

Here is an extremely informative overview of the challenges facing NSN from Caroline Gabriel. It leads off discussing the fact that Siemens is thinking of pulling out of the joint venture. The article points out where the company has been successful and where it has not. One area which is worth delving into is a mention of NSN pulling out of WiMAX without having significant LTE business. While the two areas are obviously related, pulling out of WiMAX was likely a decision based on the potential revenue available in the market based on current analyst estimates. In other words, would it make sense to keep spending millions on WiMAX R&D until the LTE business takes off? Probably not - it makes sense to put your best and brightest on the product area with the most potential.

Having said that, I am a huge fan of Rethink and their analysis is always thought provoking. I look forward to reading it each weekday. If I get a moment I have to remember to have someone on my team reach out to them to see if they want to blog or write articles on TMCnet.

Is Steve Jobs smarter? Is he just more detail-oriented or does it come down to simply managing a small stable of products with a laser-focus on usability. This is what I thought about as I read this blog post (some profanity included) which tears apart the Pre for being full of problems and most importantly being  too slow to be useful. This entry came from an obvious Pre fan and that is why it is so scary and important that Palm deal with the problems mentioned. I should mention I do know a few happy Pre users and I don't see enough of them around to confirm the problems mentioned in the above post. Still, the device is obviously not the iPhone killer some thought it would be. Far from it.

I have followed Palm for many years. They invented the useful handheld computing space and they were a decade ahead of the game. At some point they became exceedingly arrogant - approaching them at trade shows was a painful experience as I recall. They had a high-flying stock and were a Wall Street darling for a while. Did the success just go to the management's head?

Over the years, many people at the organization have come and go and some of Apple's top people have come from Palm. But you have to wonder, why is the magic of Apple so tough to duplicate? After all, these top people seem to be doing better at Apple than they did at Palm. Is it management? Culture? Is it years of getting kicked in the teeth by Bill Gates that built immense character?

Perhaps the most simplistic answer to Apple's success is focusing on a few items and making sure the products the company develops are really different and better than what is on the market.

You could argue that in many ways, the Pre is better than an iPhone as it has an easier programming interface, a keyboard, allows multitasking, etc. But the Pre feels clumsy when you pick it up. It is a cool looking device and almost as slick as an iPhone at first glance but it is obviously something Apple wouldn't let out its door. So too with the new Droid from Motorola... Apple wouldn't produce it. I haven't even used the phone but a glance at the photo and you realize no one has "thought different" as Apple's marketing tells us.

If Apple made cars - would anything on the street today measure up? Probably not. Why is that the case and why aren't more companies learning from Apple?

I wonder, would Apple's competitors - or any company for that matter be better off if they just didn't release their products until they were able to confidently answer the question affirmatively, would Apple let something like this out their door?