Could An Enhanced Google Talk Spell The End For Skype?

Posted by Stephen Wellman, May 1, 2007 11:35 PM

According to a bunch of IP bloggers, Google may soon add both a multichat function and conference calling to Google Talk. If Google Talk has these functions, other peer-to-peer VoIP clients, especially Skype, may find themselves unable to compete. Could this be Google's play to kill Skype?

Here is the skinny from Skype Journal:

Huge value escalating to live talk from chat, from multichat to conference calling. Google is lining up conversational triggers like email, Google documents, calendar events (time to talk with X about Y), videos/photos, even news (join a conference call with other English-speakers about this Google News headline).

Did I hear someone say monetization? Anyone remember Google's UK "click-to-call" advertising pilot? How would you like to talk with other customers? Or other people who are searching for the same product? Conversation is sticky in the advertising sense. And live talk can multiply the effect of an ad, sometimes helping people move to action.

Google will have to overcome issues with firewalls, but the company will likely develop a solution or buy a company whose technology will solve this in the next few months. Other than that, Google's huge network effect could allow it to overcome any scaling issues.

Otherwise, Google can just add these functions and the company's installed base will have fully integrated access to a VoIP and IM client that rivals Skype.

Skype's competitive advantages right now are its excellent chat functionality, high quality of voice, decent prepaid long distance, and conference calling. If Google can launch a product that does most of these functions (sans long distance) as well as Skype and its integrated with both Gmail and Google Apps, how can Skype compete?

What do you think? Could a new and improved Google Talk kill Skype?

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