Cisco looks to appeal Microsoft-Skype deal ? WhyGo

Last fall, the software giant Microsoft purchased the video conferencing service Skype in a remarkable $8.5 billion deal that created a new and powerful partnership in the field of telecommunications. Not everyone was happy about the acquisition, though. Other video conferencing companies and service providers have expressed discontent regarding the lack of a mandated open communications system that would allow Skype to connect with other video conferencing services. Now, Cisco ? one of the video conferencing industry?s largest and most successful players ? is challenging the European Union court?s approval of the deal. The Puget Sound Business Journal?s Lisa Sibley reports:

?San Jose-based networking equipment company Cisco (NASDAQ:CSCO) is suggesting that the EU should have mandated that Microsoft (NASDAQ:MSFT) use open standards for video communications to allow rival products to work smoothly with Skype.?

Because Skype has been a popular program for a number of years, many people have become well acquainted with the service and will continue to utilize it in their personal and professional lives regardless of who owns it. The concern from Cisco?s point of view is that the acquisition puts other companies at a severe disadvantage ? having Skype as a program that only interacts well with Microsoft-based systems (such as Lync) seems, to some, an unfair advantage.

There are compelling arguments for both sides. From a business standpoint, it?s hard to say that Microsoft did anything wrong ? in fact, from their point of view, the lack of open standards suits them just fine. It?s hard to say whether Cisco is appealing for any other reason than financial gain, but the sentiment is a sound one ? interoperability in the field of video conferencing is absolutely crucial for the entire industry. Limiting the possibilities of the technology is not going to do anyone any favors in the future.

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