Microsoft Inc. MSFT revealed the latest addition to its Skype for Business (Lync). It launched the technical preview of Skype for Business for Office 365, for enterprise plan customers, comprising three new programs.

Skype for Business

Last year, Lync aka Microsoft Office Communicator, Microsoft’s instant messaging and video conferencing software for Office was rebranded as Skype for Business. Functions and aesthetics of both Skype and Lync were combined so that Office 365 users could get an automatic update.

Microsoft released Skype for Business publicly as part of the Office 2013 April update. It also launched Skype for Business Online for its Office 365 customers who are presently using Lync Online.

The three new Skype for Businesses services consist of Skype Meeting Broadcast, Public Switched Telephone Network (PSTN) Conferencing, and Cloud PBX with PSTN Calling. Cloud PBX will be available for customers worldwide this fall, with an option for customers to configure existing on-premises phone lines for inbound and outbound calling. PSTN Conferencing and Skype Meeting Broadcast will be made available later this year.

While the Skype Meeting Broadcast program will be handy for big virtual meetings and public webinars, the PSTN will enable people to join the meeting via a web browser or by dialing-in with a help of a landline or mobile phone. Cloud PBX with PSTN Calling allows users to make and receive conventional phone calls and handle calls by using hold, resume, forward and transfer features.

Benefits

These capabilities are aimed at bolstering the existing Skype for Business experience. They will allow companies to replace their phone networks and video conferencing services through either an Office 365 enterprise plan or Skype for Business Plan 2 and broadcast meetings to thousands of people at a go.

Furthermore, it will enable the company to provide a complete, enterprise-grade communications solution as part of its Office 365 cloud products.

Moving to the cloud from traditional phone services and teleconferencing capabilities will offer enterprises certain advantages. The primary benefit is cost reduction. Now this obviously comes with certain limitations too like concerns over connectivity and reception as the bandwidth is shared with other services.

But Microsoft has a solution for these problems too. To help counter these concerns, Microsoft has partnered with 10 telecom companies to offer Azure ExpressRoute for Office 365. This will be available later this year to Office 365 Skype for Business customers. It will help Office 365 customers create private connections between their businesses and Microsoft datacenters to deliver more reliable performance.

The largest software developer is focused on making itself a cloud-first mobile-first company. Its cloud and mobile technologies are expected to be a major growth driver in the near future. With the latest move, the company can make its services available to millions regardless of the device used.

Microsoft has a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Akamai Technologies, Inc. AKAM, Baidu, Inc. BIDU and LendingClub Corp. LC, all carrying a Zacks Rank #2 (Buy)

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