What Are the Differences Between SIP and Skype?

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When deciding to go for Smart voip, you need to determine what kind of standard you wish to adopt. Unlike the traditional PSTN phone system that has had decades to sort itself out, there is no single for Smart voip. Every company has its own way of going about things. The closest we have to an international standard is known as the Session Initiation Protocol or SIP for short. As the name suggests, it mainly deals with the setting up and tearing down of a Smart voip call. The actual communication takes place using an RTP channel directly between the two users making it a P2P application.
Third-party programs like Skype however use proprietary protocols that are not compatible with SIP. What this means from a practical point of view is that you cannot speak to an SIP user using Skype at least for free. It's like two people speaking a different language. If each possesses a telephone number however, then the call will drop down to the traditional PSTN phone system which is the common denominator. But this is a waste of time and money. It's as if two people with a Gmail and Yahoo e-mail address want to communicate and have to wait for their messages to be hand-delivered to a specific location and then converted into electronic format again.
Unfortunately, it makes good business sense for Skype to enforce a different kind of protocol. It is not in Skype's interests to allow intercommunication with people from other networks. Because it creates a "lock-in" and prevents their customers from leaving. The so-called "network effects" become larger as more and more people join the network. It's the same reason that it's so difficult for anyone to move to another social network - all of their friends are already on there!
Skype is also a single company whereas SIP can be implemented by any organization. So for example when Microsoft decided to allow law-enforcement agencies to have access to Skype calls, there's nothing the user can do about it. If you don't like the privacy policies of your SIP provider on the other hand, you can just move to another one with a more secure system. SIP is also more flexible in the sense that you can use any number of Smart voip clients on your smartphone, tablets, or your PC. With Skype however you're stuck with just the one. That is once more the result of them having a nonstandardized Smart voip protocol.
If you're looking for a long-term Smart voip solution, Skype is a very poor choice for that. SIP on the other hand is attracting new adherents all the time. Always place your bets on standardized systems rather than those making use of proprietary protocols.