After much speculation, Skype has come out with a new beta version of its software that features video. The Skype community appears to be enthusiastic about the new bells and whistles, which include a simplified user interface and personalized message. In the scheme of things, it's a major forward for Skype because it moves the service up the telecom food chain. After all, voice was just so last year; whereas video is so "in". Just look at all the optimism surrounding IP-TV even though it's still unclear how it crack the cable empire. That said, I'm finding it hard to get a handle on what Skype's new features mean - other than perhaps a new source of revenue. Part of my growing skepticism with Skype is eBay's unwillingness to articulate how Skype fits into the bigger strategic picture. If we knew where eBay was going with Skype, it would be much easier to understand the importance of video. For example, does eBay plan to introduce a free or fee-based video services allowing buyers and sellers to communicate other than using e-mail or a VOIP call? Maybe eBay is still trying to formulate its Skype plans as its reshapes Skype's management team. In the meantime, Skype has to keep moving forward to fend off rivals such as Gizmo, which is quickly gaining the street cred Skype used to possess. One thing I find interesting about Skype Video is how it will take on third-parties in the Skype eco-system such as vSkype (now Festoon) that have carved out a nice niche by developing an add-on service. It makes you wonder how deep the new Skype is willing to go to generate revenue growth - a key component to justify the $2.6 billion to $4.1 billion coughed up by eBay. For a review on Skype Video, check out RealTechNews.
Update: Despite a glowing review by Walter Mossberg in the Wall St. Journal, Om Malik doesn't think much of Skype Video. Instead, he's pining for Google Talk to improve its game.