ie8 fix
madison

Networking

Steven J. Vaughan-Nichols

How Skype does, and doesn’t, work

By | May 12, 2011, 3:39pm PDT

Summary: Microsoft’s Skype purchase is one troublesome Internet program with many problems and shortcomings.

Skype, the voice over Internet Protocol (VoIP) and video program, is very popular. It’s also pretty bad software. Really, what were you thinking Ballmer when you wrote a check for $8.5-billion for Skype? You do know that not even two years ago Skype was valued at $2.75-billion right?

Here’s the simple truth. Skype has historically had many software problems and late last year the entire Skype network crashed for several days, we can pretty count on these kind of problems showing up on a regular basis.

You see, Skype is a modified peer-to-peer (P2P) network application. Skype started as a variation of the now outdated Kazaa P2P file-sharing program. When you make a Skype call your voice and video is encoded with a 256-bit Advanced Encryption Standard (AES) encryption key and then passed from one Skype PC to another between you and whomever you’re calling.

Yes, that’s right. When you call someone on Skype or show your, ahem, naughty bits, to your boy-friend or girl-friend while sexting, they’re passing through any number of PCs from you call him or her. Doesn’t that make you feel good and secure?

If you’re a Skype user your PC may not just be an ordinary peer though, but it may also be working as a Super Node (SN) as well. When you login to Skype, you’re probably not logging directly into the Skype login-servers but into a SN instead. The SN in turn, stores your Skype name, your e-mail address, and an encrypted version of your password.
If you have a PC with a high-bandwidth connection and you’re not using a firewall or network address translation (NAT), odds are good your PC will be picked to be used as a SN. Don’t want any part of that? Check out the Skype IT Administrator Guide (PDF Link) on how to avoid being a SN.

Did you notice something else though? For Skype to work, it needs access to insecure PCs. Seriously, who runs a PC on the Internet without a firewall in 2011? Only idiots. With no idiots, there are not enough SNs, and Skype falls apart.

Now, Skype automatically and constantly “self-heals” its network as users go off and on the service and smart users secure their PCs properly. Why do it this way? The idea behind all this is to make Skype extremely scalable without requiring the company to maintain a large, read expensive, server infrastructure. Technically, this worked well for Skype until December 22, 2010.

Page 2: [Why Skype crashes & its voice quality isn't great] »

Topics

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system

Disclosure

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols is a freelance writer. He does not own stocks or other investments in any technology company.

Biography

Steven J. Vaughan-Nichols

Steven J. Vaughan-Nichols, aka sjvn, has been writing about technology and the business of technology since CP/M-80 was the cutting edge, PC operating system; 300bps was a fast Internet connection; WordStar was the state of the art word processor; and we liked it.

His work has been published in everything from highly technical publications (IEEE Computer, ACM NetWorker, Byte) to business publications (eWEEK, InformationWeek, ZDNet) to popular technology (Computer Shopper, PC Magazine, PC World) to the mainstream press (Washington Post, San Francisco Chronicle, BusinessWeek).

Related Discussions on TechRepublic

Did you know you can take part in these discussions with your ZDNet membership?
157
Comments

Join the conversation!

Just In

RE: How Skype does, and doesn't, work
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
0 Votes
+ -
Message has been deleted.
1773 Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
Dietrich T. Schmitz, ~-~ Your Linux Advocate Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
omdguy Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
vnet313 Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
jeremychappell Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
honeymonster Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
daikon Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
John Zern Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
The Danger is Microsoft Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
g@... Updated - 13th May 2011
  • Flagged
0 Votes
+ -
RE: How Skype does, and doesn't, work
Masari.Jones 13th May 2011
Another bonehead move from an incompetent CEO. Ballamer has not done anything during at least the last five years at Microsoft to increase stock holder equity. In fact, MS is now worth less than Apple, it's essentially been left out of the Mobile and tablet markets. Zune is no more, and now they are looking at Windows Mobile 7 to take it's place, but again too little and too late. For the life of me I can't see how Steve Ballmer is still CEO.
  • Flagged
0 Votes
+ -
RE: How Skype does, and doesn't, work
j-mccurdy@... 13th May 2011
What an IDIOT!
  • Flagged
0 Votes
+ -
Message has been deleted.
reklissrick Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
drobinow Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
PollyProteus Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
jeremychappell Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
1773 Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
dazzlingd Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
jeremychappell Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
Richard Flude Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
tonymcs@... Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
Habiloso Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
tonymcs@... Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
John Zern Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
ScorpioBlue Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
Will Pharaoh Updated - 13th May 2011
  • Flagged
0 Votes
+ -
Message has been deleted.
Rick_K Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
LoverockDavidson Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
Rama.NET Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
GeiselS@... Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
The Danger is Microsoft Updated - 13th May 2011
0 Votes
+ -
Message has been deleted.
Badping@... Updated - 13th May 2011
0 Votes
+ -
RE: How Skype does, and doesn't, work
j-mccurdy@... 13th May 2011
@1773 Ha, he can bad mouth Skype all he wants but, it's free and it usually works very well. That's why it's so popular. I just watched my Wife here in USA have a video chat with her friend in New Zealand. It was perfect, no noticeable lag It sounded good and it was free. Microsoft will make money with it either directly or indirectly. They will keep the free service and sell a premium service. Probably corporate video conferences. There is a lot they can do with it. The P2P technology is great and very efficient. It is what allows them to offer a free service. They don't have to spend as much on servers to run it. The premium service will probably be ran through their servers. But to have a mostly lag free video chat anywhere in the world for free, most of us will put up with some bugs or glitches. Because most of the time we have no problems. Once we had to reboot to get it too work, but no big deal. I wonder how many people will get on here and talk about how bad it is, then when they need video chat still use it. I think MS will also improve it too. Well at least for Windows. It was always a more Windows friendly program anyway. At least that's what I hear, Ive only used the Windows version myself.

PS, why are they deleting everybody's posts? I know there isn't that much obscene stuff being posted.
0 Votes
+ -
RE: How Skype does, and doesn't, work
jeremychappell 12th May 2011
My guess is they won't integrate it, they'll just replace Skype with Lync and keep calling it Skype (kinda the reverse of what Apple did with NeXTSTEP).

The question is "what did they actually buy?" I'd say, not much. A large user base, and a known name. Beyond that, I'm struggling.

Now either Steve Ballmer is a lot smarter than I am, OR I'd make a better Microsoft CEO than him. Weirdly, I'm starting to wonder if it's the latter. Because this acquisition makes no sense at all.
0 Votes
+ -
RE: How Skype does, and doesn't, work
dazzlingd 12th May 2011
@jeremychappell
Everyone is looking at the consumer angle but everyone forgets that most Microsoft revenue comes from the Enterprise.

Skype just launched Skype Connect for Enterprises to use for outgoing PSTN at rates a fraction of a traditional carrier. With that, Microsoft gets remote gateways in practically every country. Skype are acknowledged as the largest international PSTN carrier, carrying 13% of all international calls, mostly from consumers.

Add in Enterprise traffic and expect that to increase by an order of magnitude.

Add that mix to customers looking at Office 365 with Lync functionality then you are looking at a one stop shop for a lot of businesses.

Check out nojitter.com for some quality reporting on the acquisition.
0 Votes
+ -
RE: How Skype does, and doesn't, work
The Danger is Microsoft 13th May 2011
@dazzlingd -"Add in Enterprise traffic and expect that to increase by an order of magnitude. "

Order of magnitude = -5

Enterprise remote conference has already been delivered. Microsoft can't take over just because of Skype. Microsoft is doomed.
0 Votes
+ -
USD8.5 billion for a PSTN point of presence?
Richard Flude 13th May 2011
They could have created there own network for a fraction of he price or partnered with any number of providers for that service.

No doubt enterprise use of VoIP has huge potential, but it won't be using skype. You still haven't joined the dots.
0 Votes
+ -
Message has been deleted.
Will Pharaoh Updated - 13th May 2011
0 Votes
+ -
RE: How Skype does, and doesn't, work
Miroslavr 19th May 2011
@dazzlingd

Hey carefull with orders of magnitude!!,
0 Votes
+ -
net, gross and taxes
pgit 13th May 2011
@jeremychappell It may well be the name, customer base or anything else to do with skype directly are simply bonus. It might be that MS had to lose a lot of money fast somewhere.

Money sitting in swelling accounts looks like big juicy steak to the tax wolves. In contrast, the same money applied to a business deal like this may not only avert taxes but provide credits and/or deductions, meaning "spending" it is a net gain, when the books are finally balanced.

I will say this much: people saying MS wasted it's money, paid too much, made a bone head move etc don't know what they are talking about. This made sense purely from the bottom line standpoint, so far as the directors and share holders are concerned.
14 And 116: These Two Numbers Explain Why Microsoft Dropped $8.5 Billion On Skype *

Read more: http://www.businessinsider.com/numbers-microsoft-skype-deal-2011-5#ixzz1MGbHrmIl

Most people stopped at the price, expressing surprise that Microsoft could spend so much money for a company that had recently been spun out at a $2.5 billion valuation.

But here are two numbers that explain the logic behind the deal: $14.7 and 116.

What do they mean?

$14.70 is what Microsoft paid per user for Skype

116 is the number of days until Microsoft makes the money back in operating cash flow.

Read the article.
0 Votes
+ -
RE: How Skype does, and doesn't, work
balsover 14th May 2011
@adornoe@...

The fact that MS will make up the money in 116 days only means that Ballmer a lot of money to spend on bad investments and that MS stock holders shouldn't be counting on any dividends any time soon. There is no way that MS is going to convince people that used Skype only because it was free into spending money for the same service. It is more likely that people will simply switch to a different free service such as Fring.
0 Votes
+ -
Irrelevant garbage
Economister 15th May 2011
@adornoe@...

Those two numbers are ABSOLUTELY irrelevant.

Price per user not generating any cash flow is relevant how?

If you have a lot of cash flow, you can afford to pi$$$$ a lot away?

Don't try your hand at investments.
0 Votes
+ -
Where was this article a month ago, 2 months ago, 2 years ago when E-Bay bought the company?

This guy is a bitter old loser, nothing more. I used to read this blog for entertainment just like I read headlines of the Enquirer when in line at the grocery store, but now this is getting worse than that...

Please go away and make room for someone with an original thought.
0 Votes
+ -
RE: How Skype does, and doesn't, work
jessiethe3rd 12th May 2011
@omdguy Agreed... anything that Microsoft touches SJVN gives it a failure for shock value. it's all about eyeballs.
0 Votes
+ -
@omdguy I have to agree with you. Would this blog have sounded the same if Google had bought Skype ? I dont think so.
0 Votes
+ -
It's so unfair!
John L. Ries Updated - 13th May 2011
@omdguy
Actually, I've never seen SJVN praise Skype, so I don't think it's reasonable to assume that he changed his mind because MS is buying the company.

More likely the gripes about Skype came to his mind because the buyout was in the news. My own experience with Skype has actually been good, but there are a number of quirks I've experienced which are explained by the peer-to-peer nature of the Skype network (I was actually unaware of that before SJVN brought it up).

So, thank you, Mr. Vaughan-Nichols, for the informative article. It explains a lot.

Reply to Jessiethe3rd:

(sarcasm)Since Mr. Vaughan-Nichols is constantly blogging against MS, and we know MS to be extraordinarily ethical because Steve Ballmer said so, then it stands to reason that everything Mr. Vaughan-Nichols says is false.(/sarcasm)

But since I've never made any secret of my disdain for MS and its chief executive officer (easily the worst appointment Bill Gates ever made), everything I write is suspect also.
0 Votes
+ -
RE: How Skype does, and doesn't, work
jessiethe3rd 13th May 2011
@John L. Ries Uh John Ries... do you ever look at the content that SJVN blogs about? It's all rife and anti-microsoft in nature.
0 Votes
+ -
RE: How Skype does, and doesn't, work
PMC-CON Updated - 13th May 2011
@John L. Ries

Have you a clue that Ballmer is a major stock-holder at Microsoft, due to past participation in its success. Bill Gates didn't pluck him off a cloud when he left the chairmanship. Ballmer has been around forever, even if you don't know his namer. If a a major stock-holder wants to run the place, and his board doesn't have a better candidate, he gets to do it.

So who are YOUR better candidates: please don't flatter yourself.

I may not agree with everything he has done but I am glad a founder/entrepreneur is still in charge.
0 Votes
+ -
@omdguy

So, why are you reading his column, much less posting to it? If you, (and everyone else posting below you,) don't like his articles, click on something else! I agree SJVN is biased, but I take that with a grain of salt when I read his stuff. Do you read his article just to bash him and say he shouldn't be writing them? By reading his articles, you give him two page views, and another by posting a comment. You are actually guaranteeing his column will continue by providing page hits! If you don't like him, stop reading his work. If you are going to read his work and post a comment, say something useful.

You so silly!

PS SJVN actually seems to be a nice guy. I got personal replies to one of my comments that was actually useful and helpful advice.
0 Votes
+ -
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix
Click Here
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix
ie8 fix