Logitech sees no threat from Microsoft-Skype

By Neil Zawacki
Updated: June 17, 2011

Logitech sees no threat from Microsoft-Skype

Craig Malloy, the chief executive of Logitech’s LifeSize Unit, stated recently in an interview with Reuters that he believes Microsoft’s $8.5 billion acquisition of Skype will result in a boost in business. He also dismissed potential risks to the company that have been predicted to occur as a result of the acquisition.

He stated that Microsoft would not have paid so much money for Skype if they did not see a massive new market. He also said the acquisition has increased the awareness and demand for videoconferencing and that he believes many years of high growth still remain for the industry. Malloy also stated that Skype is “likely going to be the consumer videoconferencing business of Microsoft.”

The interview comes shortly after business analysts predicted problems for the company if Skype is adopted more prominently in the business world. Craig Malloy disagreed with the claims and stated that “a dedicated device will always do a better job.”

The market for videoconferencing equipment is expected to grow by 6 percent a year for the next five years. If companies decide to go with desktop applications like Skype, it may negatively affect the sales of cheaper conferencing room equipment. Other products, such as webcams, may have their sales boosted.
 

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