Networking

Steven J. Vaughan-Nichols

Microsoft Skype breaks open-source partnership

By Steven J. Vaughan-Nichols | May 25, 2011, 9:15am PDT

Summary: What a surprise! The pre-Microsoft purchase Skype will no longer let Digium include Skype functionality in its open-source Asterisk telephone services server.

I told you so. I knew that Steve Ballmer could talk all he wanted about how Microsoft would continue to support non-Microsoft platforms, but that there was no way he’d actually do it. The first proof is here. Digium, the company behind the popular open-source Asterisk private-branch exchange (PBX) program, has announced that Skype has unilaterally ended its deal that allowed Asterisk to work with Skype.

Digium’s letter to its Asterisk users reads:

Skype for Asterisk will not be available for sale or activation after July 26, 2011.

Skype for Asterisk was developed by Digium in cooperation with Skype. It includes proprietary software from Skype that allows Asterisk to join the Skype network as a native client. Skype has decided not to renew the agreement that permits us to package this proprietary software. Therefore Skype for Asterisk sales and activations will cease on July 26, 2011.

This change should not affect any existing users of Skype for Asterisk. Representatives of Skype have assured us that they will continue to support and maintain the Skype for Asterisk software for a period of two years thereafter, as specified in the agreement with Digium. We expect that users of Skype for Asterisk will be able to continue using their Asterisk systems on the Skype network until at least July 26, 2013. Skype may extend this at their discretion.

Skype for Asterisk remains for sale and activation until July 26, 2011. Please complete any purchases and activations before that date.

It doesn’t require a genius to see what the Microsoft and Skype are doing. This summer Microsoft will be launching the Microsoft-hosted version of its Lync unified-communications server, aka Lync Online. Asterisk is a direct competitor to the entire Lync line. Need I say more?

While Microsoft still hasn’t explained how they’re going to integrate Skype’s rickety peer-to-peer (P2P) infrastructure with its server-based Lync server or its cloud-based Lync Online, it’s on their to-do list. What isn’t on MicroSkype’s to do list is supporting non-Microsoft owned and controlled platforms.

Skype’s Response:

Jennifer Caukin, a spokeswoman for Skype, has a different slant. Caukin said, “Skype made the decision to retire Skype for Asterisk several months ago, as we have prioritized our focus around implementing the IETF SIP [Session Initiation Protocol] standard in our Skype Connect solution. SIP enjoys the broadest support of any of the available signaling alternatives by business communications equipment vendors, including Digium. By supporting SIP in favor of alternatives, we maximize our resources and continue to reinforce our commitment to delivering Skype on key platforms where we can meet the broadest customer demand.”

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Topics

Partnership, Open Source, Skype Technologies S.A., Microsoft Corp., Asterisk, Digium, Peer To Peer (P2P), Collaboration, Internet, 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

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RE: Microsoft Skype breaks open-source partnership

JACOBSONR 14th Oct

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Skype acquisition will be a boat anchor.

Dietrich T. Schmitz, -*- Your Linux Advocate 25th May 2011

Everyone knows MS isn't interested in open source/open protocols. Historically, if it isn't theirs, they try to bastardize it and call it their own.

SIP will prevail and 'flourish' along with Jabber/XMPP.

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RE: Microsoft Skype breaks open-source partnership

Linux Geek 25th May 2011

@Dietrich T. Schmitz, -*- Your Linux Advocate
I agree, micro skype will die or the DOJ will block this onerous deal!

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Ha! One extreme or the other...no middle ground exists!

Cayble 25th May 2011

@Linux Geek
Your comment is both loony and horribly thought out, if thought out at all.

Your first notion, that "micro skype" will die, could only be true if its a useless acquisition. And if you were right about that it must truly be quite a useless acquisition if Microsoft cannot do anything with it, so useless it should actually be apparent right now if thats the case.

Your second idea, that the DOJ will block this onerous deal, would only be true if Skpe was an extraordinarily powerful acquisition. So powerful that in fact your saying the DOJ would block it!

Its mind boggling how opposite these two positions are. Its like saying your going to a specific country on vacation and its either going to be so cold you will have to wear a winter coat in doors, or it will be so hot that you can literally fry an egg on the sidewalk. And its impossible for it to be anything in between. Such an assertion makes no sense. Its not based on any kind of common sense and its dumb as toast.

Its clear when one uses two complete opposite possibilities to explain how or why something will not work, all the while completely ignoring the fact that something in between the two polar opposites is far more likely, that suggesting two complete opposite possibilities is simply a desperate attempt to avoid the truth.

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RE: Microsoft Skype breaks open-source partnership

tim.w.jung@... 26th May 2011

@Linux Geek
I wouldn't be surprised if this causes Skype to die on the vine after Microsoft takes it over. Microsoft does not have a very good history of integrating other companies software packages due to buy out when they are mature products. I suspect that Skype is going to go the same way that ICQ did after their buy out. ICQ is a mere shadow of what it was, and I suspect that Skype will end up the same.

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RE: Microsoft Skype breaks open-source partnership

mikroland 25th May 2011

@Will Pharaoh

LOL

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RE: Microsoft Skype breaks open-source partnership

kikl Updated - 25th May 2011

@Dietrich T. Schmitz, -*- Your Linux Advocate

Well, I hope you are right.

Microsoft payed for the large skype user base. The software is old school and easily replaceable. MS hopes that skype users are going to want to stick to their product, just like windows users. People hate breaking their habits and learning new stuff.
Then MS is going to break or seriously handicap skype on all other systems, in particular android, in order to lure people to buying windows phones. Add the next argument: MS office integration, outlook integration, ..... integration on your phone,... and I can see business users reaching out for MS phones.

I hope they fail, but I wouldn't place any bets. This tactic has worked very well in the past and it may work in the future.

Google should really improve its services - google talk - and make them readily available outside the US. Otherwise, MS could seriously damage their android business.

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RE: Microsoft Skype breaks open-source partnership

josh92 25th May 2011

@kikl

good point

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yes, M$ bought the brand name and customer base. the tech is common. and i

wessonjoe 26th May 2011

@kikl

can't stand being bought and sold like that.
Cellular One became Alltel became Verizon.
if i could have switched to Sprint i would have.
i signed up for Goggle Talk many months ago.
i finally got the account a few weeks ago.
i'll try Google Talk and Fring and others.
we'll see.

happy

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Great Points. Something that didn't immediately come to mind.

Joe.Smetona 26th May 2011

@kikl .. I think you nailed it. I've had Gmail since it's inception and have 57,000 emails (mostly technical).

I have it completely automated with hundreds of filters and labels, so my inbox stays relatively empty for the week, except for some personal emails that aren't immediately archived. Google call phone works great and is so easy to use within Gmail. I don't see why it would not take the place of Skype on smartphones if they allowed free calls outside the US.

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RE: Microsoft Skype breaks open-source partnership

@Dietrich T. Schmitz, -*- Your Linux Advocate

LOL. You took the words right out of my mouth. PPA for Skype in Linux has ?changed.? That?s how I knew Microsoft was definitely NOT going to allow open source ANYTHING. Bill Gates never really got over getting ripped off on the O/S for those build-it-yourself computer kits many years ago now. IBM tried it too, a couple years after that incident. So Microsoft became ?there?s no such thing as a free lunch? industry...

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RE: Microsoft Skype breaks open-source partnership

Joe.Smetona Updated - 26th May 2011

@Dietrich T. Schmitz, -*- Your Linux Advocate

Google "Call Phone" within Gmail is impressive and free for computer to land line calls in the US. I have a Skype account, but it's expensive to call a land line from your phone. Also, it's harder to use. i think the difference would be for the video conferencing, but that is a computer to computer dedicated event and I don't have any need for it.

Google has also taken the liberty to turn phone numbers into links in your emails. That's handy, just double click the phone number and you are dialing the number. The quality is exceptional and it's not usually possible for people to tell you are on VOIP. I have FIOS and the quality is exceptional there also for phone calls and internet.

With millions of Gmail users, Google has the power to dominate by just releasing features to their user base without any formal advertising.

Also, switching to Google DNS has been an extremely pleasant experience. It hasn't tripped up at all and getting away from the providers DNS (Verizon) has eliminated a lot of unwanted page diversions and messages. Because of it's caching algorithms it's noticeably faster and security is improved.

However, you may not want to use it at work, there may be difficulties with the company intranet sites. It's just they built their network on "their" DNS and it may have issues that Google DNS fixes, which doesn't help bring up your intranet.

http://code.google.com/speed/public-dns/

http://code.google.com/speed/public-dns/docs/performance.html

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RE: Microsoft Skype breaks open-source partnership

jgm@... 26th May 2011

@Dietrich T. Schmitz, -*- Your Linux Advocate

So all my fellow Linux users are in an uproar because... Skype wants to move to the open SIP protocol, which is why they're pulling the plug on Skype for Asterisk????

It's days like these, when Linux-heads get all Tea Party crazy, that I feel like wiping the dust off of the Atari ST computer and telling people my OS is Atari TOS instead of Linux. sad

There is no "historically" with Microsoft, by the way. It's a new era, and Penguinistas can't seem to accept that the OS cold war is over. Bill Gates had a son and decided to take down the jar where he kept his soul and reclaim it. Now he's fighting malaria, Jobs copied the soul trick and is the evil corporate overlord, Microsoft served its jail time courtesy of the DOJ and is now at least as honest a citizen as Michael Vick, and Steve Ballmer doesn't lay awake at night worrying about desktop Linux or open source. We've got to take a deep breath and just let it go. If Atari and Commodore fans can bury the hatchet, Linux users can learn to make peace with Microsoft. Or at least find common ground in hating the iPad or something. happy

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Very well put..

Wolfie2K3 26th May 2011

@jgm@...
+1...

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Unfortunately, it is really so.

drleos 28th May

A good example is Hotmail.

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Unfortunately, it is really so. See Hotmail, for example...

drleos 28th May

@Dietrich T. Schmitz, -*- Your Linux Advocate

I am afraid that no serious person can work for such a company. sad

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RE: Microsoft Skype breaks open-source partnership

Rama.NET Updated - 25th May 2011

Actually, it is in Digium's court. I understand, you are blind with Microsoft's hatred. They have to make agreements with Microsoft and not Skype. The agreement with Skype would become void anyway once the transaction of Microsoft/Skype is over, and Digium has to come with Microsoft's agreement until then your's is simply a fanboi rant like the incompetent Linux Advocate.

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You might be blind as well...

Solid Water 25th May 2011

@Rama.NET

Yes, the excerpt says: "Skype has decided not to renew the agreement that permits us to package this proprietary software."

Now, could you tell me how much Microsoft asked per license?

My wild guess would be that the cost was prohibitive - I see no other reason not to renew the agreement.

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Its a competing product

A Gray 25th May 2011

@Solid Water Ford doesn't license Ford Sync to anyone, because it gives them a competative advantage. Remember, most non-Linux companies are in this to make money. its not evil to make money. Some companies give away stuff in hopes it generates service contracts, others sell their software. If there was no money in it, Astrisk wouldn't exist in the first place.

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RE: Microsoft Skype breaks open-source partnership

eric@... 25th May 2011

@Solid Water
Simple reason ROI

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Clueless

Economister 25th May 2011

@Rama.NET

Changes in corporate ownership do NOT impact existing contracts, plain and simple. That is one reason companies carry out due diligence, to find out what kind of contractual commitments they are taking on. The only way you get out of contracts is through bankruptcy. As far as I know, MS is not just trying to pick up the assets of a bankrupt Skype.

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RE: Microsoft Skype breaks open-source partnership

bitcrazed 25th May 2011

@Economister - Existing Customers will continue to be supported for the next couple of years (as per existing contracts). However, Skype have declined to iss a new contract at this time. Since MS and Skype will be in the midst of planning their new business, this makes sense.

also, this has nothing to do with open source since this deal was about Skype's binaries being redistributed, not source.

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Thank you for clarifying

Economister 25th May 2011

@bitcrazed

There is so much ignorant or deliberate FUD and misrepresentation on this forum, it boggles my mind at times.

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RE: Microsoft Skype breaks open-source partnership

wellduh 25th May 2011

@Economister Wrong legal argument. This is a case of an option for contract renewal/continuity where the licensee pays a continual/periodic royalties license based on renewal period or units of delivery. Royalties based on one time fees for use in perpetuity is generally a sign of part-time individual developers or companies in financial trouble.

Your argument is incomplete. It applies in the ABSENCE of contractual provisions for change in ownership. Yes it does apply to most Generic services contracts. However, its an irrelevant legal argument.

It would have been more correct and concise to say change of ownership does not alter the contractual provisions...which could include circumstances of change in ownership. You just ASSUMED there were no such provisions. If you want to play that game -- incorrectly written contracts may fail to transfer with change of company ownership having been accidentally attached to specific individuals.

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RE: Microsoft Skype breaks open-source partnership

wellduh 25th May 2011

@Economister Specifically it is VERY RARE royalties license contract that requires the licensee to continue payments forever even if they opt to stop including the technology in their products and stop offering any specific support associated with past products.

What is true is that renewal options only come up at specific points in time or licensed product numbers. Some multiple annual date is very common: 1, 2, 3, 5, 7, 10, 20 years.

But I surely would like to sell patent licenses in your world.

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RE: Microsoft Skype breaks open-source partnership

gwartnet 25th May 2011

@Rama.NET
Actually, the agreement would not become void. Agreements are obligations that transfer with a company, unless the agreement says otherwise. In this case, it appears that the agreement will NOT BE RENEWED. Microsoft hasn't unilaterally done anything, other than not renew a contract. Digium's options? Try to renegotiate a new contract with different terms. Try to sell their technology to Microsoft.

It's obvious that Microsoft wants to develop and sell its own product on the Skype platform--they bought the thing partially for that purpose.

As to open source issue... Digium's agreement extended into the proprietary workings of Skype's network. I'm not sure how an end to this proprietary relationship says anything about open source issues.

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RE: Microsoft Skype breaks open-source partnership

Rama.NET 25th May 2011

@gwartnet
I agree, but there is more than Microsoft stepped on Asterisk's progress as claimed by SJVN and his puppet Economister.

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RE: Microsoft Skype breaks open-source partnership

Regulator1956 25th May 2011

@Rama.NET No. By law, all Skype agreements in the USA would continue - don't know the law outside the USA. Only a court can cancel an agreement beyond the cancellation terms included in the agreement.

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And why would the agreement be void?

John L. Ries 26th May 2011

@Rama.NET
Assuming the merger concludes, MS will inherit *all* of Skype's obligations; if Skype is bound, then so will be MS.

Apparently, this is an agreement that can be unilaterally cancelled by either party and that is what Skype has done.

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Do facts matter to SJVN at all?

honeymonster Updated - 25th May 2011

A deal between Microsoft and Skype has been announced, but it has not gone through yet and MS executives still has no say in Skype. That would be against the law. Until MS actually takes over, Skype executives must protect the interests of the current shareholders.

But SVJN still presents Skype decisions as MS. Forget facts.

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So MS never.....

Economister Updated - 25th May 2011

@honeymonster

breaks the law? I guess the US proceedings and the EU fine was all a mirage. Besides, it would not be a crime. The shareholder can sue. Do you think that is likely?

Naive in the extreme

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What does that have to do with anything?

Michael Alan Goff 25th May 2011

The facts say that this lack of Skype-deal has nothing to do with Microsoft. There is no evidence to say that it does. If facts become available that show that Microsoft screwed the pooch (open source), then I will be one of the first yelling for them to change it.

I don't use Skype, on Windows or Linux, but it would be nice for it to remain an option on my Linux partitions.

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Funny

Economister 25th May 2011

@goff256

Facts? You have absolutely no idea what the FACTS are. You are merely making assumptions because you have not seen a "smoking gun".

You really should look up the word "naive".

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RE: Microsoft Skype breaks open-source partnership

Regulator1956 25th May 2011

@Economister I doubt MS would be very successful pushing Skype to do something significantly not good for Skype. MS currently has no legal control over Skype. If the deal fails and Skype did things solely for MS, then Skype would be screwed.

I've been involved in a few transactions like these and no one would hurt their company for this type of stuff. Maybe little things, but not big stuff.

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None of us know the facts

Michael Alan Goff 26th May 2011

Anything we say is merely an assumption. I say we wait for the facts and we then make an informed decision. Is that so wrong?

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RE: Microsoft Skype breaks open-source partnership

LoverockDavidson 25th May 2011

@honeymonster
Excellent post! You just debunked his entire post in one swipe.

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Kindly do not cloud the issue with facts sir!

sagec 26th May 2011

I think facts in general are against the author's principles...

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I'm no lawyer...

John L. Ries 26th May 2011

@honeymonster
...but I would suspect that MS can be consulted on pending business deals, even if Skype's own executives have the final word. It would be odd if there wasn't something in the merger agreement restricting the kinds of new deals Skype might make, since MS would be bound by them.

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No Free Lunch

retnep 25th May 2011

Microsoft is a business. It's goal is to make money. Microsoft can support cross-platforms without being open sourced. Open source is for hobbyist. It's not for prime time.

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Gp ask the stock exchange for their software

A Gray 25th May 2011

@Economister Email the stock exchange and ask them to download their softare to use locally. Tell them you just want to read through their algorithms. Lets see how open they really are.

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RE: No Free Lunch

benched42 25th May 2011

@retnep said "Open source is for hobbyist. It's not for prime time."

Really? Are you kidding here? Not ready for prime time? Akamai is the world's largest Internet content delivery and distribution system and Akamai's servers run Linux (open source). The worlds fastest supercomputers used for a variety of tasks run Linux (open source). PHP (open source) is the most used server side scripting language in the world on web servers. Apache (open source) is the most used web server OS in the world, and it's most often used on a Linux (open source) server. Linux server farms run Google. Linux server farms do all the rendering work for CGI used in movies like Avatar. And this is just an off-the-cuff list of prime time uses for open source.