Talking Technology Change in the telecoms sector continues apace. ’s Neil Ward talks to Criticaleye about the rise of mobile, targeting high-growth markets and why the $8.5 billion acquisition by has been a smart piece of business

e’re two years now into their and its president, Tony Bates, reporting It’s quite a feat for a sector known for big “Wpost-acquisition phase and I directly to former CEO Steve Balmer. acquisitions going horribly wrong (think would say that quite honestly we’re just AOL-Time Warner). Neil joined Skype in getting our heads around the five to As a business, Skype – a provider of VOIP 2009, after setting up a prepaid debit card ten year plan,” says Neil Ward, General (voice over internet protocol) services business and selling it to MBNA Bank a Manager of online telecoms company – had already had its suitors with Ebay year earlier, and is charged with developing Skype. “So I suspect that they’ve had a buying it in 2006 for $2.6 billion, before the customer base. At the time he joined tolerance to not spoil Skype and we’ve had selling 70 per cent to private equity outfits there were 13 million concurrent users on a tolerance to learn about Microsoft.” Silver Lake and Andreessen Horowitz. any given day. That figure has now passed While Ebay never quite found the right 65 million while the number of subscribers The deal made the news in 2011 fit, it seems that Skype is being integrated connected to Skype stands at 350 million because it was Microsoft’s largest into the Microsoft camp with its software – a figure Neil wants to grow to a billion. acquisition – reportedly paying 32 connecting directly into Office 365, , times operating profits – and included , Bing, Microsoft Messenger, There is, he says, a great advantage in being a structure that followed with Skype and Lync (Microsoft’s own part of the Microsoft stable, providing becoming a division within Microsoft business-focused online phone service). extra firepower and bolstering the VoIP

www.criticaleye.net Talking Technology | 1 provider’s reliability of service as well Overall, the global market stands at as its ability to be more efficient with around $3 billion. The competition and upgrades. The other accelerant is being We’re in pace of innovation are ferocious, pitting part of the Microsoft range of products, the company against big telcos, not to which gives access to more potential a breakaway mention innovative start-ups: “There users while preserving the brand’s distinct is room for other players and provided identity: “We’ve got a suite of brands at position from the that Skype, as part of Microsoft, is Microsoft that are well managed through rest of the telco bringing an ecosystem of high and rich Bing, the Xbox, other areas on the content and value to users, we’re relaxed consumer side and, of course, the core market about it and welcoming of the market of the enterprise is solid and scalable. development. We keep a mindful eye on whether their innovation is any better “Skype as a brand and a service is still ensuring that the service was reliable and than ours – quite frankly, often it’s ‘me too’, very much part of its own ecosystem, but that the operations – billing, payments, whereas we hope to break new ground.” we leverage quite hard on being able to anti-fraud and customer service suite – roll in the Microsoft suite of services and were all in place. Perhaps crucially though, As for the future, Neil identifies mobile as devices. I think there’s a genuine respect the big strategic issue was making the a “key part of the strategy”. For him, the for Skype as a brand within Microsoft.” SkypeOut service – calling landlines and acquisition of Nokia by Microsoft is a sign mobiles through the internet – profitable. that the user experience will be improved Building on that point, Neil suggest that by having a manufacturer on board, Skype’s engineering pedigree around Conversation piece alongside a content and delivery system. project management and development has As for Skype, it’s looking at “enriching” its been noted by Microsoft and dully scaled An innovative approach to customer reliability and feature-set on mobile, but in across relevant parts of the business. “I service sees the user community devise conjunction with the quality of the offering think that’s one example of where we’ve their own trouble shooting solutions for there is the need to target new horizons, put something into the pot,” he says. fellow users. According to Neil, having notably China, Russia, the Asia Pacific area a strong community helps “shape the more generally, plus Brazil and Mexico. Upon joining Skype, Neil quickly outlined product” by offering real-time feedback a set of strategic objectives which included on their experience. It also saves costly “Actually, if you can crack the language investment in customer support teams and cultural challenges that you face manning phone lines: “If you take a macro- Vital Statistics in those markets, there’s huge benefit commercial view on it, it’s important and they’re very warm to our products Born: Clatterbridge on the because customers think they want call and services,” he concludes. Wirral, 1971 centres until they try and use them. © Criticaleye 2014 Lives: Luxembourg Secondly, by paying for call centres we Married: Yes, with three kids lose the edge on product development.” University: Newcastle, then Neil Ward a postgraduate Diploma Vice President He goes further to suggest that the sense of Law at Staffordshire and General Manager of community is what gives Skype its Business Operations, Skype Passions: Walking his two dogs, edge against other telecoms companies, Snoop and Molly; “One Neil is VP & GM Business Operations claiming that it has taken some $1 billion after the rapper and at Skype, now a division of Microsoft. one after my wife’s nana” a year away from competitors: “We’re in Neil has held positions at BT and Virgin Book: The Catcher in the Rye a breakaway position from the rest of the Media, where he oversaw the integration by JD Salinger telco market. My job was to make sure that of NTL, TeleWest and Virgin Mobile. Music: Robin Thicke, Beatles, we had the best of an online community Daft Punk, Creedence Contact Neil through: Clearwater Revival and a viral brand, while engaging in that www.criticaleye.net market in a meaningful way.”

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