Steve Ballmer Does Not Like To Lose

With Microsoft's plan to acquire Skype for $8.5 billion, Steve Ballmer is doing a Jason Voorhees in Crystal Lake. Let me explain. Microsoft failed miserably at mobile. While the boys and girls in Redmond were contemplating how to put the "Start" menu on a phone, Steve Jobs was cleaning mobile clocks with the iPhone. But, like all great competitors, Microsoft knew they lost it. So they started from scratch. The result: Windows Phone 7. In my opinion, an awesome mobile platform on a par with iPhone, albeit with a lot less cultural cachet. The problem: The momentum favors iPhone and Android. Microsoft needs an ace card. Ballmer, potentially, found an ace card in Skype.

With 633 Million Users, Skype Is A Communication Juggernaut

Skype is not a phone. It's a way to see your three-year-old granddaughter, connect with your adult children, or make sure your family is safe 4,000 miles away. And, it's mostly free. Of the 633 million users, fewer than 8 million are paying users. No matter. What is important is that many of these users would love to make free calls on a mobile phone.