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One of the biggest deals of the tech world has been announced — Microsoft has acquired Skype for $8.5 billion. The aftershocks of this deal would be felt on three subsets of the tech world — mobile, social networking, SMB services — other than improving real-time communication over various platforms. Microsoft is expected to bring in deeper Skype integration into Lync, Outlook, Xbox Live, Hotmail and Messenger, as mentioned in the press release. Microsoft CEO Steve Ballmer was quoted stating, “Skype is a phenomenal service that is loved by millions of people around the world. Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.” Skype CEO Tony Bates, who will assume the title of president of the Microsoft Skype Division, resonated Ballmer’s words, “Microsoft and Skype share the vision of bringing software innovation and products to our customers. Together, we will be able to accelerate Skype’s plans to extend our global community and introduce new ways for everyone to communicate and collaborate.” There is no dearth of articles which state how Microsoft has over-paid for Skype ahead of an IPO or articles which talk about the past transaction that have been made for Skype by eBay and other investors or which talk about the achievements of Skype and Microsoft which we have already witnessed. So, instead of speaking about the same, we would rather focus on how this deal will change what we have been comprehending about the future of mobile, social networking and SMB services. With this deal, Microsoft will directly challenge Apple in mobile and, Google in social networking and small business services. Microsoft had earlier partnered with Nokia to build smartphones running on Windows Mobile OS and Nokia hardware. This deal itself has sparked lot of speculations regarding the future of Symbian but, that has now moved to the sideline with today’s announcement. Now, Microsoft can directly compete with Apple and fight against a service that is a trademark of an Apple device – Facetime. Facetime allows users to make video calls on devices powered by Apple. With Skype in its kitty, Microsoft can allow the same service on devices powered by Windows, which includes, Nokia smartphones, computers and tablets. Even before this announcement I was in the camp which was considering the Nokia-Microsoft partnership a no-brainier. But now, I am forced to think otherwise. A well known fact of the tech world is the relationship that Microsoft and Facebook share. Microsoft is an investor in Facebook and has utilised the social network to the fullest. Microsoft powers Facebook’s search engine and in return Facebook gives Microsoft the access to the thousands of socially shared data that is hidden behind Facebook’s walls. These data have helped Microsoft power its social search . Bing’s toolbar and Hotmail Messenger , both feature deep Facebook integration and the upcoming Office 15 is also expected to have deep Facebook integration. Skype has also partnered with Facebook and allows its users to access the News Feed and Facebook contacts right from Skype. There have also been speculations that Facebook and Skype are partnering to bring video chat to Facebook. So, it might not be wrong to speculate that we might see some nifty moves by Microsoft and Facebook to take their partnership to the new level. This seems more on the cards, now that Google is expected to allow video-conferencing in its upcoming social initiative, +1 . Although Google would not have the numbers that Facebook boasts yet, the company has the potential and determination to bring forth something that might just shake the ground beneath Facebook’s feet. A deeper integration of Skype might just give Facebook an upper hand in this battle with Google, which in turn gives Microsoft a boost. The final frontier where we expect a lot of action is in that of the services that are provided to SMBs. Google Apps and Microsoft’s Office 365 are fighting head-on to gain momentum in this space. Google Apps does have the lead at present but, with Skype added to the mix, Office 365 would definitely be the choice of any SMB. Skype is already a common name for most SMBs which operate from different locations and Office 365 provides services which are similar to those that Google Apps provides. Thus, we might see some shift in power at this front. The words of Ballmer, at press conference, did confirm that this integration is in the horizon, “We will move beyond email and text to rich experiences. Talking to colleagues across the world will be as seamless as talking to them across the table.” Only time will tell how Microsoft uses Skype to the benefit of itself and its partners. However, we can expect some major services to be introduced which not only improve how the common users communicate but, also the way businesses do. Will Bates’ expectations of this deal — “This allows us to extend from hundreds of millions to billions of people. We think this is a set of services that can reach everyone on the planet.” — be turned into a reality? Check the Winners Of WATAwards Here Related Posts Google Zeitgeist 2010 Is Here – What Did India Search For? Microsoft Is Ethical; Google, Apple, Facebook Are Not Microsoft Paying Nokia A Billion Dollars To Seal Smartphone Deal? 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