• Submitted By: ells1987
  • Date Submitted: 06/18/2014 4:36 AM
  • Category: Business
  • Words: 753
  • Page: 4

Q7. What are the pros and cons of Skype’s selection of a proprietary Voiceover-Internet protocol?
Skype’s VOIP technology is different from the standard VOIP becuase the technology works on peer-to-peer model unlike other systems that work with usual client-server model.
Non - existent capital expenditures and low maintenance costs: Skype has no real costs associated with them. The users are the ones that have to buy the routers and the internet service. The consumers are the ones in charge of their bandwidth and is in control of what the use.
Free calls and no monthly subscription:As Skype operational costs are almost at zero, Skype does not have to start montly subscription program. Other VOIP programs have subscriptions because their costs are higher and they need monthly subscriptions to help with costs.

Security and viruses :The P2P technology exposes computers to malware and viruses. The user has to be aware of the different ways virus could enter the computer on the receieving end.

Customer and software issues: Dueto many changes to Skype recently, such as software updates, users have found it hard to adjust to the change. Microsoft has upgraded a lot of its systems and this has caused issue with Skype and Microsoft

(Q8) . What are the characteristics of a business that can successfully implementan advertising-based business model? Does Skype possess thosecharacteristics?
:(1) Has a lot of users that are involved in the business and will take the time to go through the advertisments .
(4) The business has done proper research on its target audience and found out that the right kid of advertising can be used on that particular target audience
(2) The business can show/produce advertising at low cost..
Yes, Skype has the common characteristics of a business to implement the advertising-based business model.Skype has a huge numbero f users that dont pay anything to use Skype. They strictly use Skype to make free calls. If...

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