Why Skype is no different

It is very likely that you have heard about Skype; it is even probable that you are using Skype.
(Fair disclosure: I am not a subscriber of Skype.)
Michael Powell, FCC Chairman suggests that the telephony market place has changed dramatically since the arrival of Skype.
Is Skype really so special compared to other VoIP service providers? Of course Skype thinks so.
They say that unlike other VoIP service providers, Skype has a very intuitive user interface that does not require technical skills, but is easy to configure.
They also suggest that unlike other VoIP service providers, they solve NAT Traversal problem without the use of Proxies with the resultant better voice quality.
Of course the clincher is that Skype is P2P and so is infinitely scalable and resilient.

Before I analyze these points, let me describe the workings of Skype based on my understanding and what is available in public.

There is a Global Index Server where all clients login and authenticate themselves and exchange security key information.
Based on this exchange, the client will be assigned a Supernode, who will maintain the presence information; Supernodes also communicate with other Supernodes while locating other end-points.
The clients and Supernodes use the well documented UDP Hole Punching algorithm to solve the NAT Traversal problem.
Upon a little reflection, we can see that functionally this architecture is equivalent to other VoIP architectures like SIP.
Global Index Server is equivalent to the Registrar; the function described in item 2 is equivalent to Location Server and the function described in item 3 is Session Border Controller.
What is more, many SBC vendors solve NAT Traversal problems using similar optimization techniques with the same rate of success. Consequently, the clients in other environments also do not require complicated configuration setup.

Skype users have commented positively about its voice quality.
Global IP Sound indicates that Skype uses its codec, in particular iLBC.
GIPS also supplies their codec to other VoIP clients. X-ten also uses iLBC codec. So one can get Skype like quality in other systems as well.

The Global Index Server is a single point of failure. If it fails, clients can not login. I suppose new Supernodes can not be drafted either.
In my opinion, this is not a serious failure, because existing system can continue to function and a replacement GIS can be easily brought online.

But my concern regarding Supernode is more substantial.
It is suggested that since the Supernodes are nothing more than other Skype clients, Skype is infinitely scalable.
I submit that this may not be the case. To begin with, a client is eligible to be a Supernode only if it has enough processing power and bandwidth capacity to perform the functions of a Supernode.
Additionally, it is a requirement that they be present on the public Internet or behind a “transparent” NAT and a “permissive” Firewall.
I am betting that such clients will be scarce in relation to the total number of clients (a single Supernode serves around 100 clients).

If Supernodes need to have special capabilities, then it is likely that they will demand some form of compensation.
It is not clear whether Skype is setup for this. Additionally, it is not clear how the individual clients are protected from a misbehaving Supernode.
It is true that the media is encoded. But the Supernode is involved in the signaling phase. Since the Supernode has network connectivity to the client, it is tempting to use it for extra and unwanted commercial activity.
So Skype may deploy their own Supernodes, eliminating one more difference between it and other VoIP providers.

Some have expressed reservation because Skype is proprietary.
There have been previous instances where proprietary consumer items have found wide adoption without incurring huge collective cost. VCR is one of the examples that come to mind.
But in this case there are some differences:

Alternatives, based on standards are available
Skype uses mostly well-known and open technologies; only the protocol semantics is proprietary
Even though Skype (for that matter VoIP) is naturally a “product” and not a “service”, Skype views it as service.
For example, they do not allow an enterprise to use their own GIS, instead of the global one, even if communication will be restricted to internal use alone.
As I am told, there is no way to directly address another client, even if the IP address is known.
Windows Messenger from Microsoft has the same limitation, whereas NetMeeting allowed direct communication.
In this respect also, they are just like other VoIP providers.
It is disheartening to see that even those whose middle name should be P2P, think like this.
I am reminded of an ad that appeared in a New York based Indian newspaper in 1982. The ad was taken by an Indian Restaurant that offered two free alcoholic drinks in exchange for ticket stub for the movie Gandhi.
In summary, Skype shares the same functional architecture with other VoIP providers. It shares the same business plan and outlook.
But they have artificially cloaked it in a proprietary system. I guess this is their “economic moat” to use a Buffett term.
From a consumer point of view, the beauty of VoIP is that there is no moat and current technology is sufficient to realize direct IP Communications that does not require any intermediation.

Aswath Rao has 20 years of experience in the telecommunications field, having worked for leading R&D firms. He has worked on ISDN, Frame Relay, BISDN, wireless and satellite communications. For the past 5 years he has been working on VoIP related issues.
Long before intelligence at the end became acceptable, he advocated "functional terminals" in ISDN. His proposal for Inter Connect Function has been incorporated in the TIPHON architecture and currently it is known as Session Border Controller.
He has developed ways to offer PSTN subscribers many of the features available to VoIP subscribers. He maintains a blog. He can be reached at aswath@whencevoip.com

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Listed below are links to weblogs that reference Why Skype is No Different:

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» Bursting the Skype Bubble from Lance Tracey


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» Scanning from Unbound Spiral
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» Skype vs. SIP from Aswath Weblog
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» Does SkypeOut Undermine FCC Regulations? from Aswath Weblog
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» Bursting the Skype Bubble from Om Malik on Broadband
For past few weeks there has been a lot of noise around Skype. What with company raising millions in venture capital, and all the gushing press, I thought perhaps it was time to take a lot at this more critically.... [Read More]

Tracked on March 27, 2004 08:03 AM

» Bursting the Skype Bubble from Lance Tracey


For past few weeks there has been a lot of noise around Skype. What with company raising millions in venture ...

[Read More]

Tracked on March 27, 2004 08:03 AM

» The Incredible importance of Instant Message clients from Om Malik on Broadband
Spring VoN 2004 is almost over, and after walking the conference floor, I am convinced about two things - there is too much hype around the technology. Secondly, the Instant Message clients are becoming incredibly important and will be the... [Read More]

Tracked on March 27, 2004 08:03 AM

» Scanning from Unbound Spiral
After a vacation the newsreader is full of posts. I missed out on VON and WTF last week so along with the normal Skype review I keyed in a few Feedster searches. The fragments below reflect some I noted and... [Read More]

Tracked on March 27, 2004 08:03 AM

» Skype vs. SIP from Aswath Weblog
There is an article in The Register which quotes Rohan Mahy challenging Skype. Rohan echoes some of the points I made in "Skype is no different". But I do not share his concerns regarding security. He feels rogue programs can... [Read More]

Tracked on March 27, 2004 08:03 AM

» Does SkypeOut Undermine FCC Regulations? from Aswath Weblog
Recently, Skype announced their new service called SkypeOut, which is a PC-to-phone service. This announcement has created a huge buzz; the latest addition is (via Jeff Pulver) a column by Kevin Werbach, entitled ?Tune In, Turn On, Skype Out?, which... [Read More]

Tracked on March 27, 2004 08:03 AM

» Bursting the Skype Bubble from Om Malik on Broadband
For past few weeks there has been a lot of noise around Skype. What with company raising millions in venture capital, and all the gushing press, I thought perhaps it was time to take a lot at this more critically.... [Read More]

Tracked on March 27, 2004 08:03 AM

» Bursting the Skype Bubble from Lance Tracey


For past few weeks there has been a lot of noise around Skype. What with company raising millions in venture ...

[Read More]

Tracked on March 27, 2004 08:03 AM

» The Incredible importance of Instant Message clients from Om Malik on Broadband
Spring VoN 2004 is almost over, and after walking the conference floor, I am convinced about two things - there is too much hype around the technology. Secondly, the Instant Message clients are becoming incredibly important and will be the... [Read More]

Tracked on March 27, 2004 08:03 AM

» Scanning from Unbound Spiral
After a vacation the newsreader is full of posts. I missed out on VON and WTF last week so along with the normal Skype review I keyed in a few Feedster searches. The fragments below reflect some I noted and... [Read More]

Tracked on March 27, 2004 08:03 AM

» Skype vs. SIP from Aswath Weblog
There is an article in The Register which quotes Rohan Mahy challenging Skype. Rohan echoes some of the points I made in "Skype is no different". But I do not share his concerns regarding security. He feels rogue programs can... [Read More]

Tracked on March 27, 2004 08:03 AM

» Does SkypeOut Undermine FCC Regulations? from Aswath Weblog
Recently, Skype announced their new service called SkypeOut, which is a PC-to-phone service. This announcement has created a huge buzz; the latest addition is (via Jeff Pulver) a column by Kevin Werbach, entitled ?Tune In, Turn On, Skype Out?, which... [Read More]

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Comments
We're hoping to address some of the issues that effect VOIP by using open systems (SIP/IAX) and existing call routing technology (Asterisk/SER) and enum.164 ( http://e164.org )...

Rather then being continuosly connected, enum.164 allows you to simply setup a gateway and receive them. Solving the supernode issue.

Posted by: Duane at March 27, 2004 08:03 AM

I think Skype is neat. Sure, if you're worried about someone tapping into the call setup, don't use it. Simple as that. For the general user who doesn't want anything else, Skype Just Works. Now, if they could only support IAX2 and SIP..

Posted by: John at March 27, 2004 08:03 AM

Freshtel have tried the same arrangement with a proprietary extension to IAX2. It is purported to work with standard clients, but doesn't. Bzzt.

Wanders off, singing: "Hi-de-ho, hi-de-hi, gonna get me a piece of the sky ..."

Posted by: Rob at March 27, 2004 08:03 AM

which is all you can really know about usa visa a stranger when you meet them (aside from usa visa maybe cues you get about where you see them green card lottery at, and inferences based on how they're dressed, green card etc., but those are only generalizations accept credit card

Posted by: Merchant Account at March 27, 2004 08:03 AM

We're hoping to address some of the issues that effect VOIP by using open systems (SIP/IAX) and existing call routing technology (Asterisk/SER) and enum.164 ( http://e164.org )...

Rather then being continuosly connected, enum.164 allows you to simply setup a gateway and receive them. Solving the supernode issue.

Posted by: Duane at March 27, 2004 08:03 AM

I think Skype is neat. Sure, if you're worried about someone tapping into the call setup, don't use it. Simple as that. For the general user who doesn't want anything else, Skype Just Works. Now, if they could only support IAX2 and SIP..

Posted by: John at March 27, 2004 08:03 AM

Freshtel have tried the same arrangement with a proprietary extension to IAX2. It is purported to work with standard clients, but doesn't. Bzzt.

Wanders off, singing: "Hi-de-ho, hi-de-hi, gonna get me a piece of the sky ..."

Posted by: Rob at March 27, 2004 08:03 AM

which is all you can really know about usa visa a stranger when you meet them (aside from usa visa maybe cues you get about where you see them green card lottery at, and inferences based on how they're dressed, green card etc., but those are only generalizations accept credit card

Posted by: Merchant Account at March 27, 2004 08:03 AM

We're hoping to address some of the issues that effect VOIP by using open systems (SIP/IAX) and existing call routing technology (Asterisk/SER) and enum.164 ( http://e164.org )...

Rather then being continuosly connected, enum.164 allows you to simply setup a gateway and receive them. Solving the supernode issue.

Posted by: Duane at March 27, 2004 08:03 AM

I think Skype is neat. Sure, if you're worried about someone tapping into the call setup, don't use it. Simple as that. For the general user who doesn't want anything else, Skype Just Works. Now, if they could only support IAX2 and SIP..

Posted by: John at March 27, 2004 08:03 AM

Freshtel have tried the same arrangement with a proprietary extension to IAX2. It is purported to work with standard clients, but doesn't. Bzzt.

Wanders off, singing: "Hi-de-ho, hi-de-hi, gonna get me a piece of the sky ..."

Posted by: Rob at March 27, 2004 08:03 AM

which is all you can really know about usa visa a stranger when you meet them (aside from usa visa maybe cues you get about where you see them green card lottery at, and inferences based on how they're dressed, green card etc., but those are only generalizations accept credit card

Posted by: Merchant Account at March 27, 2004 08:03 AM