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Now that Google is killing off Gizmo5, i was wondering whether a real alternative / challenger could be created to challenge the dominance of SKYPE.

If you were to do a challenger to SKYPE, what features or how would you position it in order to overcome SKYPES first mover advantage and already fortified Number 1 positoion / Brand recognition ?

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I see nothing to do with startups in this question. – David Mar 13 '11 at 14:43
well I do, since doing a VOIP startup is something im considering and I wanted other peoples take on how to compete against the change of VOIP. – user8597 Mar 13 '11 at 14:45
More importantly can Friendster or Myspace be challenged? – Frank Mar 15 '11 at 22:32

4 Answers

Anything can be challenged with something BETTER. Look at me...

My first IM was ICQ. It was the best thing around, as it was the first IM. Then, MS Messenger became stronger, and I ditched ICQ. Then came Skype and my MS Messenger was history.

All ditches "losers" I mentioned were leaders once, brand names, top of their game. You think I wouldn't switch to the next best thing if it came tomorrow? Sure I would, in a heartbeat, especially because it IS an instant messenger, all my friends will switch to something better. I don't want to stick around talking to myself...

The questions you really need to ask is:

1) How can a competitor improve over what Skype has to offer now? What would you have to receive as a user from someone else to just say: "Wow, I gotta move!" 2) Do I have what it takes to challenge them?

So to sum it up: Can Skype be challenges? Yes, Of course. Question only is with WHAT an by WHOM.

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Skype can be challenged on the areas that it has challenged the big telecom operators. That is:

  1. a new technology
  2. price
  3. a new social phenomenon

In detail the have been: (1) is the internet. (2) lower price for international and national calls. (3) increased people's mobility.

I don't think that there is much space left there. Unless you can win in one these three areas. I don't see how.

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Could become commoditized - see GNU Free Call, but in many cases, its not the technology stack alone, but how it is curated and maintained that makes it a useful service.

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Skype has a big pretty hold of the market, you would have to do something drastically different without making it complex or heavy. Skype used to be plagued with bugs and issues in the early days, the technology behind Skype is surprisingly complex for such a simple premise of video calling and voice calling.

It would take a considerable amount of investment and great ideas to get investment in the first place before you could even consider something like this. You need to work out the underling technology Skype already has and ask yourself, "how can I make this better whilst offering the same cheap prices Skype already offers."

It's not impossible, but in my opinion the odds are stacked against you unless you have an established team of software developers and other assorted members with knowledge of advanced networking, etc.

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