« Metatalk: Coordination. Or the "future" tab. | Main | CxO's - Linchpins in Bringing Business to Technology »

Why did Skype lose the Dell account to SightSpeed?


SightSpeed's Berkeley, California headquarters

Skype earned their way to two Dell gaming laptops in May 2006, the XPS M2010 and the XPS M1210. Back when this was all novel, Skype had an inside track. And now small and nimble SightSpeed secured a bigger presence with the world's largest PC company. Congrats, SightSpeed!

Why did Skype lose and SightSpeed win?

Speculating:

Since Then...

  • Relationship turnover. The normal musical chairs of both Dell and Skype personnel.

  • Stale memories. Evidence from 2006 may not have been persuasive in 2008.

  • Unmemorable results. The earlier test was stacked against Skype: customers had to opt-in. Would having Skype on a US laptop in 2006 have improved sales?

And Now...

  • SightSpeed skinned well. When Dell calls, you jump. Could Skype have offered Dell a "powered by" client in Spring 2008? A Dell version of Skype's web site? No.

  • More video now. SightSpeed offers multi-party video conferencing; Skype offers more telecom, audio conferencing, quality depending on conditions outside Skype's/Dell's control. In which did Dell want to co-brand?

  • Customer Primacy. SightSpeed gave Dell the primary customer relationship. If Dell swaps out to another video supplier, would SightSpeed be more likely than Skype to help Dell transition customers to the new provider?

  • Revenue Sharing. Money doesn't always change hands in these types of deals, but it's not been done. Skype could offer a piece of its service subscription pie. Dell would have more power in a relationship with tiny SightSpeed and might extract/extort more cash with better auditability.

Five things Skype can do beyond normal business practices:

  1. Tune the desktop client for skinning.

    Skype customized for partners before. TOM Online to serve the Chinese market and comply with PRC censorship laws, and MySpace IM with Skype to add identity and voice interoperability. In both cases, engineering costs were non-trivial and ongoing.

    4b (the Skype for Windows 4 Beta) will help. It's UI framework is made to be easily reconfigured and tweaked by Skype developers.

    Companies like Dell will value the ability to tailor user experiences across each of their demographics. They design PC packages to fit user task profiles - which activities people spend the most time on, what is most important - for office collaboration, team gameplay, family ties, hypersocial tweens, hardened security devices. Skype must make it fast and easy for partners like Dell to reshape Skype for each product family.

  2. Open the client UI. Race to see how fast you can open the UI to independent developers, for skinning and plug-in applications. When you get it right, you'll

  3. Multiparty Video. Keeping up with the SightSpeeds. And Apples.

  4. Continuity of Scale. Adding the Nth person to a conference should seamlessly move the call to a platform better able to support that conference. It could be a member of the conference with more capacity or better bandwidth. It could be a conferencing service like Vapps' HighDef or Skype's Skypecasts. Remove the friction.

  5. Serve a web client. Talk is not just for your buddy list anymore. It's for friends in Dell forums, Dell support, Dell blogs, Dell investor relations, Dell government affairs. Offer the world's Dells a platform they can use, not just sell.

tags: , , , , ,

Follow Phil Wolff on Twitter or FriendFeed.

TrackBack

TrackBack URL for this entry:
http://skypejournal.com/blog-mt/mt-tb.fcgi/4059

Comments

SightSpeed beat Skype for the Dell contract because they have a better product, they are a better company, and THEY HAVE CUSTOMER SUPPORT. Five things that Skype could do to improve their chances in the future:

- HIRE SOMEONE IN CUSTOMER SUPPORT

- HIRE ANOTHER PERSON IN CUSTOMER SUPPORT

- HIRE ANOTHER PERSON IN CUSTOMER SUPPORT

- HIRE ANOTHER PERSON IN CUSTOMER SUPPORT (at this point they would actually have FOUR customer support employees, which would be a major improvement over today's ZERO)

- Get rid of the arrogant, difficult, narrow minded people currently working in Skype marketing and vendor relations

Skype was going to lose the Dell contract to anyone, absolutely anyone, because Dell is much too smart to fall into the same trap again. I don't know if you are unaware of what happened, or just kept on too short of a leash by Skype to talk about it, but in a nutshell: Dell computers came pre-loaded with McAffee Anti-Virus. McAffee is one of the many, many programs that cause Skype not to work properly. Therefore, the majority of customers who bought Dell computers and tried to use Skype had major problems. That swamped the Dell customer support lines (especially since trying to contact Skype support was an exercise in futility). Why on earth would Dell want to volunteer themselves again to be Skype customer support?

I'm sorry but this whole post is a bit ridiculous, exudes a bit of arrogance, and comes across as someone who's bitter because a competitor got a huge deal over Skype.

I find it interesting that you decided to call one of your competitors "small" and "tiny", however, you did mention also "nimble" which has positive aspects (like the ability to provide new features faster than a large company). Bigger is not always better!

Since I have tried Skype, ICQ, PalTalk, ooVoo, CamFrog (claims 30 million downloads and millions of users), iSpQ, EyeBallChat, cuWorld, TokBox, TryFast, Orgoo or meBeam for quick anonymous video chats, and others, I would say that SightSpeed is reliable with the best audio and video quality, is easy to install, and has support that actually responds in a timely manner. Skype is no longer the only game in town. For any serious video or business call, I rely on SightSpeed as my number one choice - after all they claim to have spent over 10 years developing the video quality and you can tell the difference. SightSpeed recently gave every business account the ability to call up to 8 other people (9 total) without any extra cost in price.

You can waste time like I did looking for the best synchronized audio and video or just save yourself time and headache by just using SightSpeed. I tried to get info from SightSpeed support about what's ahead, and they wouldn't say specifically, but I suspect more surprises ahead. I see ooVoo as constantly trying to catch up with SightSpeed features, and they do finally have service (for PC only) to call landlines and cell phones and their $15 unlimited calling plan is a good deal. So, make all the phone calls you want with ooVoo if that's what you primarily need.

I see someone else has read and commented on this post too:
http://community.zdnet.co.uk/blog/0,1000000567,10008651o-2000498448b,00.htm

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Brought to you by:

Convenos_125x125.active.gif

Auto generated tags