Skype Versus Vonage

There is a school of thought which believes that Skype’s value added services, SkypeIn, SkypeOut and Skype Voice Mail could become a major nightmare for Vonage. Allan Tumolillo, COO of Probe Financial Associates is one such person and he believes that, “Skype now has a product set similar to Vonage and cable and telco providers. What is most important, though, is that Skype’s product set allows us to examine what the likely cost to a subscriber will be from VoIP providers.” He believes that others will have to lower their price points to meet Skype, or else. Most vulnerable he thinks is Vonage. I kinda agree. Linux hasn’t really killed Microsoft but took a major bite out of Sun Microsystems’ game, leading to speculation that the company might go private, though that has been denied by Scott McNealy.