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Why Google Doesn't Need Skype

Ovum's Future View Daily continues to perpetuate the myth that Google may buy Skype. As much as it would make sense, I think Google's leadership team is smarter and more focused than to buy the alternative messaging and telephony startup.

1.Google already has as many daily visits as Skype has had downloads.

2. Googles reach in marketing and power as an Internet company is eclipsed right now only by Yahoo and Microsoft, the latter of which is moving more and more away from consumers and deeper into the enterprise because they have not figured out how to fight Google.

3. If Google wanted a telephone type play they should buy RIM before Microsoft does.

4. Google's buying of dark fiber has more to do with having to move their own data around the world than to be leasing network capacity. It will allow them to deliver more ads, at lower costs and to adventure more into network based storage service and enable them to be more of a portal than just a directory. This is especially important as the get more and more into rich content.

5. If Google wanted to get into the telephone business they would begin by buying directory services (i.e. white and yellow page companies) and offer an end to end directory service. They could then extend the content offerings around those listings. Another option is to buy a wireless carrier, like T-Mobile as suggested by SkiBare this morning.

6. There is enough intelligence in Google to build their own softphone client using open standards like SIP.

So while Skype and Google would be a powerful combination, I don't see Google spending the kind of money Skype is asking for given how they can create technology for less that will pay them more.

Google Rumors adds more fuel to the fire saying an IM tool or VoIP play is possible something that Mark Evans seems to agree with.