How to Save a Sinking Skype

Despite updates to the service and impressive growth, there’s still a lot of speculation that eBay may soon sell or spin-off Skype. I like, Skype, VOIP for international businesses is like heaven on Earth. It allows me to have a phone number in major business hubs (North America, UK, etc) which serves to reduce the stigma and pre-conceived notions some potential clients about doing business in Africa. I’ve found that people, even family and friends, just don’t call Africa. There’s like a mental block that tells them it will be expensive, something could go wrong or perhaps it will make them vulnerable to scammers. It’s far easier to get someone to Skype-to-Skype or to just call them.

That said, if Skype is in trouble, then I think rather than sell it off, eBay should consider adding some of the following innovations to Skype:

1. Buy eFax.com / Incorporate Fax Technology

Somehow the digital communication revolution failed in one major area, faxes. Of all the traditional ways of communication, faxing remains the last hold on in offering web based alternatives to the ‘old way’ of doing things. Sure there’s sites like efax.com, myfax.com, greenfax.com, freefax.com, faxzero.com etc. but none of them have become as an ubiquitous alternative to the ‘old method’ as Skype has for Voice communication. While Skype doesn’t seem to have an interest in fax services right now, eFax is poising itself to be the Skype of fax with it’s cross-platform, easy to use eFax Messenger.

As you can see the simple desktop app (available for OSX and Windows) makes sending faxes as easy as it is to send files over Skype. To me this one is a no-brainer, I’m not exactly sure why Skype hasn’t played in this sandbox yet.

2. Kill the Spam

Skype’s biggest problem is the ridiculous amount of spam it’s users receive. Their suggested solution? Turn off all the social and privacy settings that make Skype easy and fun to use to begin with. In Africa, it’s become my default IM client because I know pretty much all my contacts here use for many of the reasons listed in the first paragraph of this article. Unfortunately, unless you seriously lock-down your Skype profile with privacy restrictions, spammers will try to initiate chats, send you files, even call you! Skype, thus far, hasn’t really addressed this problem at all. But don’t worry Skype, there’s plenty of competitors salivating on the sidelines waiting to eat your lunch any day now.

3. Open Up the API

I’m not sure what Skype’s fear of talking to other applications is. As it stands, you can hook into the Skype API to talk to it, but the converse isn’t true without the Skype client being open. For instance, Adium uses the Skype API so that users can use gChat, AIM, Yahoo Messenger and MSN Messenger from one central location. The big problem with the way Skype has to be integrated is that the Skype client has to be open to even use it. What is the point of using one IM client to update another, if the other has to be open!? On top of that, it’s annoying to have to open two applications every single time I want to IM people.

If the success of Ribbit has proven anything, it’s that developers would have a fields day if they had access to a robust voice app API. Well, they actually do, in the form of Ribbit, which will no doubt become Skypes biggest competitor as it grows. Skype should recognize this and rather than locking down the API with innovation reducing restrictions, open it up and do something like invoke an Amazon EC2 like business model where it’s free to develop on but heavy use results in a fee to developer or business that’s using it. Smart, scalable and a free way to have other people do all your R&D for you.

Remember. Skype, “Developers, Developers, DEVELOPERS!“

4. Aggressively Integrate with Hardware Companies

While, there’s still too many companies that are still charging for wifi to make Skype3 useful, it’s definitely one of the smartest products Skype offers. Smart but is it really consumer friendly? For instance if I tried to Skype-out on one of their mobile devices in say a Starbucks, I’d end up paying Skype for the service and then paying Starbucks again for the wifi. That extra charge mainly just scares people from ever buying a Skype3 in the first place. Instead Skype should save it’s money and form more partnerships with Apple’s iPhone, Google Android and of course the mobile carriers like AT&T and T-Mobile.

They’re on the right track, the integration with the PSP, cordless handsets and mobile phones is smart and helps take VOIP one step closer to becoming adopted by the mainstream.

5. Be More Agile

When most companies get too big, they become the Titanic: too slow to adapt to rapidly changing waters. All of this stuff above Skype should have done in 2004, it’s 2009. The more time it takes, the more competitors they’ll face, and the weaker their hold on the market. Ribbit and VoxOx are great examples of this. The corporate nature of eBay is no doubt largely the cause of this inability to innovate or do much of anything at all, but hopefully they’re smart enough to either change this or get more creative.