Dell to Bundle Skype on new XPS Laptops

Dell's decision to bundle Skype's video Internet calling software as an option to its new XPS notebook could backfire for the computer manufacturer.

June 1, 2006

2 Min Read
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Skype and Dell agreed today to ship Skype's video Internet calling software as an option to Dell's new XPS mobile systems, the XPS M1210 and XPS M2010.

Under the terms of the agreement, Dell will offer to pre-load Skype on the XPS 1210 and 2010 as part of an optional audio-video communications package that also includes an integrated rotating webcam, noise-isolation earbuds and mobile broadband capability. The M1210 features a 12.1-inch display and retails for $1,300. The M2010 features a 20.1-inch high-definition display and retails for $3,500

The move comes just after Dell agreed on Thursday to pre-install Google's search application for scouring a computer hard drive and emails, and a Web browser toolbar linking to Google's online search engine and other services. The applications would be accessible through a side pane on Internet Explorer 6, the current version of Microsoft's Web browser.

While that relationship could be a big win for Dell, the Skype deal could backfire for the computer manufacturer. IT has been widely fearful of Skype's architecture as users booting up Skype could compromise their corporate network.

"IT is petrified that users will become a Skype SuperNode and forward unknown users through their enterprise PCs onto the corporate networks," says David Passmore, research director at the Burton Group.Skype's attempt at making its software more business-friendly hasn't met with much success either. Skype for Business does little to address the major concerns for business. Skype has also suffered from buggy code. A bug two weeks ago allowed attackers to send a file to a recipient without his or her consent. The bug once again led <="" a="">Gartner research director Lawrence Orans to urge enterprises to stay away from the software. Little wonder that so many "Skype" killers have become a hot item on the market.

For Dell who saw 51 percent of its US revenue come from the business sector in 2005, this could pose a significant challenge. Dell can draw some satisfaction that the Skype software is only being sold as an option to the XPS. Even so Dell may have some tough selling to convince IT that this option is more help than hindrance.

Companies mentioned in this article: Burton GroupDell Google<="" a="">GartnerSkype

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