Technology Report Skype Essay Example

It has achieved remarkable success as the program that turned into a verb (Vogue). Cementers collaborated with four programmers from Estonia whom he had worked with before to create Aziza - a disruptive technology program for POP file sharing similar to Anapest - which stirred controversy in the global record industry (source: Keep Company Profile). After Anapest shut down in 2001, Aziza quickly gained popularity and became the most downloaded program worldwide by 2003, with over 315 million downloads. However, it faced legal issues from the music industry despite its appeal among consumers. In 2002, Aziza was sold and its creators distanced themselves from it.Despite facing legal problems with the music industry, Cementers and Frits saw a business opportunity in the telecommunications sector. Their aim was to create an internet calling software program called Keep, applying the same principles that made Aziza successful. During this time, companies like Peonage were also developing internet calling programs that showed potential for future advancements. These programs utilized the internet to transmit digitized voice data between users, known as "Voice Over Internet". With their accomplished team from Aziza and programmers from Jolted, Cementers and Frits began developing Keep. The concept of Keep was built on the innovative POP technology developed for Aziza, which gives it a competitive advantage in today's market (Roth). The initial release of Keep as a free download allowed the company to keep costs low by leveraging their established POP technology. The first version of Keep offered POI telephony services and PC-to-PC calling. The importance of POP and POI technology in Keep cannot be overstated. Voice over Internet Protocol allows communication via the internet, while Keep's

hybrid POP system has revolutionized networking systems. Without these technologies, Keep would not exist and wouldn't have its current advantage over competitors.Keep, formerly known as Sky peer-to-peer and Skipper, is a technology that incorporates POP (peer-to-peer) technology. This name change reflects the popularity and potential of this technology during the early 21st Century. Despite controversies surrounding file sharing and POP technologies, many businesses view them as revolutionary for networking and believe they represent the future of internet connectivity.

POP technologies enable easy file sharing, searching, and downloading over the internet. Keep utilizes a hybrid version initially developed for Aziza. It allows direct file sharing between systems on the network while also functioning as a client. Moreover, adding new users to Keep increases processing power and communication channel capacity.

The ability of Keep to "decentralize resources" ensures unlimited growth in its customer base with minimal or zero cost per user. In contrast, other systems like Anapest and Peonage use centralized networks that require a server maintained by the company. Users in these systems are connected through this server, which means additional servers are needed when their capacity is reached.

This centralized infrastructure leads to high costs for companies using Anapest or Peonage services, resulting in service charges. For instance, Peonage charges around $400 per new customer and serves as the main paid provider for Internet calling servicesOn the other hand, Keep has minimal additional costs per user. Unlike Aziza and Keep, both Peonage and Keep servers keep records of user files. Anapest's success was short-lived because its server kept records, while Aziza managed to go unnoticed for a longer period. Voice over Internet Protocol (VoIP) software converts the user's

voice into digital data and transmits it through the internet. This technology predates Keep as Vocalist was the first company to offer free commercial VoIP in 1995. Early VoIP programs were difficult to use and lacked clear voice interaction but developers recognized its potential benefits by leveraging phone companies' groundwork for the internet.

Despite most VoIP technology companies not surviving after the dot.com bubble burst in 2000, telephone companies still underestimated the impact of internet calling on their business. Peonage and Keep quickly became dominant players in the VoIP market. While Peonage focused on the United States, Keep targeted European and Asian markets. One key advantage that set Keep apart was its POP system, allowing users to communicate for free with other Keep users while Peonage required a monthly fee for unlimited calling.

Within two years, Keep's software had been downloaded over 145 million times and gained a user base of more than 47 million. Initially, phone companies were slow to recognize the threat of Internet calling but eventually developed their own technology for Internet telephony services.According to an AT survey in 2005, 43 percent of multinational companies planned to switch or were already using POI by 2007. Keep, despite its success and growing user base, faced the challenge of achieving sustained profitability. To address this issue, Keep introduced two additional services: Support and PC-to-PC connectivity with non-users of Keep.

With Support, users could make calls from their PC to landline phones without usage limits at a low cost compared to traditional phone lines through either monthly payments or heavily discounted annual rates. This service operated similarly to regular phone systems where users enter the number and place

the call. When connecting with external users, minimal service rates were charged by Keep.

In 2005, Support had a user base of over 1 million and generated close to $60 million in revenue. Despite only a small percentage of Keep's users paying for its services, commenters believed it would still be profitable due to the lack of additional costs per user.

The internet telephony market saw participation from big companies like Google, Microsoft, and Yahoo who either acquired or created their own services. To compete with these rivals, eBay approached Cementers and Frits about acquiring Keep to enhance their point of interest (POI) service.

In late 2005, eBay purchased Keep for $2.6 billion which was widely praised by Cementers but raised concerns about eBay's significant investment in a company with minimal revenue.Meg Whitman, the CEO of eBay at the time, stated that the acquisition of Keep aimed to expand the eBay marketplace. Both Keep and eBay recognized potential benefits from acquiring the leading Internet telephony company as it allowed them to focus on developing applications and services while accessing a larger consumer market. Under eBay's ownership, Keep experienced growth in applications, services technology, and revenue. However, by 2007 it became clear that the acquisition did not meet eBay's initial expectations. Cementers stepped down as CEO but remained involved as executive chairman of Keep while both he and Frits ceased day-to-day operations of the company in 2008.
Established in 2003 using innovative technologies to revolutionize the industry is how Keep came into being. It has continuously improved its original product by introducing new offerings, services, and technologies that impress users. Being an online community since 2003, it can be accessed

for free with downloaded software. The original beta version of Keep 0.90 has undergone over 100 modifications and upgrades. The latest available version is Keep 4., which is known for its extensive product offerings and user-friendly interface. It is considered one of the most user-friendly POI programs available.

(Note: have been preserved.)The popularity of Keep is due to its availability on various systems and products, including Windows, Mac OS X, Linux, phones, Monika Internet Tablets, Sony SSP, and Windows Mobile. This wide accessibility allows Keep to expand its market reach and sustain successful growth while maintaining a competitive advantage through diverse free software offerings. Users can enjoy features such as PC-to-PC calling, instant messaging, conference calls, call transfers and forwarding to other Keep users, and video calls. These free software products were developed using technologies like POP systems and POI.

Video calling was introduced by AT&T at the 1964 World's Fair but initially did not gain much traction. However, with the help of the Internet and software like Keep it has become popular in recent years. Keep is a free worldwide service that enables users to connect with friends globally and businesses to conduct video conferences without incurring travel expenses.

Although there is room for improvement compared to some competitors, video calling is increasingly popular. However, Keep currently lacks desirable features like video vocalism and multi-location video conferencing. To generate revenue, Keep offers paid products that provide cutting-edge technology support for cost-effective calls to landlines and mobile phones.Offering all products and services for free would not be beneficial for Keep's success or revenue generation. One of their products, called Spleen, enables the user's computer to have a

telephone number, allowing outside network landline and mobile phone users to directly call the user's computer. While Keep Vocalism currently only offers voice capabilities, they have plans to add video vocalism in the future.

All of Keep's pay-for software offerings can be purchased through subscriptions or with Keep credits (Keep.Mom). In addition to software, Keep also provides various hardware products such as cordless phones, video phones, mobile phones, and Wi-Fi mobile phones integrated with Keep technology. Hardware options from Keep also include headsets, websites, and computer microphones.

It is anticipated that dual-use Wi-Fi mobile phones bundled with POI technology will become popular among users. These dual-mode service phones allow users to switch between cellular and Wi-Fi network usage. On these phones, there is a feature called "Keep" which allows users to make free calls to other Keep users from any location with access to a Wi-Fi network (Reardon).

The widespread availability of Wi-Fi networks in homes, hotels, and public spaces has contributed significantly to the rapid growth of the market for Wi-Fi phones. This growth presents an excellent opportunity for Keep to expand within this industry.Despite eBay's success and diverse product range, on September 1, 2009, it announced the sale of 65% of its stake in Keep to a consortium of investors and private equity firms for slightly less than the original acquisition price in 2005. Although the integration between Keep and eBay did not yield the desired synergy, there is still promising potential for Keep's future. The investors and equity firms who now hold controlling shares have prior familiarity with the company's technology as they have previously worked closely with the founders. They understand the necessary steps

required to maintain Keep's success. Despite these changes, Keep continues to expand its offerings and services while currently holding the top position in its category and playing a significant role in cross-border communication. According to MacMillan, it is projected to generate $600 million in revenue this year.