Skype is a freemium voice-over-IP service and instant messaging client, developed by the Microsoft Skype Division. The name was derived from "sky" and "peer".
Skype was first released in August 2003. It was written by developers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn (Estonia), Janus Friis (Denmark) and Niklas Zennström (Sweden) who had also originally developed Kazaa.Skype had 663 million registered users as of the end of 2010. It was bought by Microsoft in 2011 for $8.5 billion. Microsoft's Skype division headquarters is in Luxembourg, but most of the development team and 44% of the overall employees of the division are still situated in Tallinn and Tartu,Estonia.
The service allows users to communicate with peers by voice using a micro phone, video by using a webcam, and instant messaging over the Internet. Phone calls may be placed to recipients on the traditional telephone networks. Calls to other users within the Skype service are free of charge, while calls to landline telephones and mobile phones are charged via a debit-based user account system. Skype has also become popular for its additional features, including file transfer, and videoconferencing. Competitors include SIP and H.323-based services, such as Linphone and Google Hangouts.
Unlike most other VoIP services, Skype is a hybrid peer-to-peer and client–server system. It makes use of background processing on computers running Skype software, and this is reflected in Skype's original proposed name of Sky Peer-to-Peer.
Some network administrators have banned Skype on corporate, government, home and education networks,citing reasons such as inappropriate usage of resources, excessive bandwidth usage, and security concerns.
Skype was founded in 2003 by Janus Friis from Denmark and Niklas Zennström from Sweden. The Skype software was created by the Estonians Ahti Heinla, Priit Kasesalu, and Jaan Tallinn The first public beta version was released on 29 August 2003.
In June 2005, Skype entered into an agreement with the Polish web portal Onet.pl. On 12 September 2007, eBay Inc. agreed to acquire Luxembourg-based Skype Technologies SA for approximately US$2.5 billion in up-front cash and eBay stock, plus potential performance-based consideration.
On 1 September 2009, it was announced that eBay was selling 65% of Skype to Silver Lake, Andreessen Horowitz and the Canada Pension Plan Investment Board for US$1.9 billion, valuing Skype at US$2.75 billion.
Registered users of Skype are identified by a unique Skype Name, and may be listed in the Skype directory. Skype allows these registered users to communicate through both instant messaging and voice chat. Voice chat allows telephone calls between pairs of users and conference calling, and uses a proprietary audio codec. Skype's text chat client allows group chats, emoticons, storing chat history and editing of previous messages. Offline messages were implemented in a beta of version 5, but removed after a few weeks without notification. The usual features familiar to instant messaging users — user profiles, online status indicators, and so on — are also included.
The Online Number, a.k.a. SkypeIn, service allows Skype users to receive calls on their computers dialed by conventional phone subscribers to a local Skype phone number; local numbers are available for Australia, Belgium, Brazil, Chile, Colombia, Denmark, the Dominican Republic, Estonia, Finland, France, Germany, Hong Kong, Hungary, Ireland, Japan, Mexico, Nepal, New Zealand, Poland,Romania, South Africa, South Korea, Sweden, Switzerland, Turkey, the Netherlands, the United Kingdom, and the United States. A Skype user can have local numbers in any of these countries, with calls to the number charged at the same rate as calls to fixed lines in the country. The countries on this growing list are referred to collectively as the SkypeIn Countries.
Skype supports conference calls up to 25 people at a time. Skype also supports video chat between two people for free. Screen sharing and group video calling is available for Premium subscribers between a maximum of 10 people.
Skype does not provide the ability to call emergency numbers such as 112 in Europe, 911 in North America, 000 in Australia, 100 Call Police in India and Nepal The U.S. Federal Communications Commission (FCC) has ruled that, for the purposes of section 255 of the Telecommunications Act, Skype is not an "interconnected VoIP provider". As a result, the U.S. National Emergency Number Association recommends that all VoIP users have an analog line available as a backup.
On 14 July 2011, Skype partnered with Comcast to bring its video chat service to Comcast subscribers via their HDTV sets.
On 17 June 2013, Skype released a free video messaging service which can be operated on Windows and Mac OS, iOS, Android and BlackBerry.
On 12 August 2013, Skype released the 4.10 update to the app for Apple iPhone and iPad that allows HD quality video for iPhone 5 and fourth generation iPads.
In January 2011, after the release of video calling on the Skype client for iPhone, Skype reached a record 27 million simultaneous online users. This record was broken with 29 million simultaneous online users on 21 February 2011, and again on 28 March 2011 with 30 million online users. On 25 February 2012, Skype announced that it has over 32 million users for the first time ever.As of 5 March 2012, it has broken to 36 million simultaneous online users and less than a year later, on 21 January 2013, Skype had more than 50 million concurrent users online. In June 2012, Skype had surpassed 70 million downloads on an Android Device.
On 19 July 2012, Microsoft announced that Skype users had logged 115 billion minutes of calls over the quarter, up 50% since the last quarter.
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