Most people don’t know what Gizmo5 is but it’s in the same software category as Skype, that is making free calls between computers (with Gizmo5 installed) and making cheaper phone calls to landlines (without charging per call connection fee like Skype). And there’s also one deadly feature which made Google acquired it – it works with Google Voice.
So long, Skype. Once people figure out how to have Google Voice work with Gizmo5 (which will be integrated soon since Gizmo5 is now acquired by Google), Skype subscribers (myself included!) will find Google Voice more attractive. Once Google Voice starts rolling out globally (it’s currently available for US only), Skype’s profit margin will suffer even more.
No wonder eBay (the owners of Skype) was trying REALLY hard to spin it off, get a potential buyer and also pushing for an IPO in 2010. Buying into Skype’s IPO doesn’t look that promising anymore, not so in 2009 and certainly not in 2010.