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At the recent Kickstart technology conference in Queensland several vendors including the Logitech owned LifeSize Communications said that the demand for Video Communication was set to grow but each and everyone of them claimed that Skype was not a threat despite Microsoft aquiring the Company for $8.5 Billion dollars.

On Friday Skype announced that it had surpassed a new milestone, recording more than 32 million concurrent users for the first time in its history an occasion that should be of concern to video communication vendors.

According to Microsoft the Company is now working to integrate Skype across its entire product portfolio with new more robust software now being developed for both server and client enviroments.

Microsoft CFO Peter Klein said that  Skype and Itheir recently expanded P telephony service will be integrated into new Windows products with an expanded service set to appear with the launch of Windows 8.
Siz communications.

Skype is not seen as a threat “The product is not robust enough, there are problems with the voice quality and this is not good enough in an enterprise or SMB enviroment where organisations want quality communications” he said.

“When you think about Skype and when you think about trying to deliver a compelling set of experiences across devices, the most fundamental experience across devices is communications,” he said at the Goldman Sachs Technology & Internet Conference, which was webcast.

According to Klein, Skype will tie together all Microsoft devices, including Xbox, Smartphones and tablets  in a a scenario that he claims is “as universal as any,”

Recently Cisco who rejected buying Skype prior to Microsoft snapping them up appealed to the  European Commission claiming that they want Microsoft and Skype to support standards for interoperability with other collaboration platforms.

Cisco is specifically concerned about how Microsoft intends to tie Skype and Lync, an enterprise product that provides IM, presence, video conferencing, IP telephony and online meetings.

At the kickstart conference several video vendors said that the prospect of Microsoft being able to deliver viable video conference and VOIP for the SMB market in the short term using Skype technology was a “long way off” .

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