Microsoft did not quite come out and say it, but all signs point to Skype video calls being the major feature the VOIP company is bringing to Windows Phone 7.
Microsoft made no bones about the fact that Windows Phone will definitely be one focuses of the Skype merger, but they also laid very strong emphasis on the video facilities of Skype, noting that 40% of Skypeâ€™s traffic was already video calls, and Skypeâ€™s CEO cheekily noting that they will continue developing their video calls solution on iPhone and Android.
For those outside of US the deal does not make much sense, with Windows Live Messenger much more popular than Skype here, but in USA Skype is the dominant IM network, and Microsoft just bought significant mind share and US IM market share, which if well integrated in Windows Phone may make the OS much more attractive. The only concern is that the deal may take some time to complete, meaning this feature may have to be delayed till then.
Microsoft may also have bought a significant patent treasure trove which may be used to slow their Android rivals down significantly.
The massive deal may be related to Microsoft coming out of supervision by the Department of Justice this Thursday, something Microsoftâ€™s rivals will likely find regrettable indeed.
We are still not sure Skype is worth $8.5 billion, but it is certain Microsoft will be able to make good use of it.