Skype is apparently up for sale, with Cisco the likely buyer. True or false, Cisco makes a great deal of sense as a buyer, because it can monetize Skype’s user base in a way that Skype never could. With 560 million registered users (124 million of which are active), but only 8.1 million paying customers, Skype could use some help.
This may sound like heresy to acolytes of Silicon Valley economics. After all, the new economics of software go something like this: Give great stuff away, then charge for advanced features for the few who need them. In open source we call it “Open Core.” For Silicon Valley Web entrepreneurs, it’s “freemium.”
In both cases, it’s sub-optimal.
Read more at GigaOm.
