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Skype Challenging Two VoIP Services: Page 6 of 17

This isn't a big surprise, given that the development team behind Gizmo Project is made up of members of the development team responsible for building the open-standard SIPphone VoIP platform. Because Skype and all other VoIP platforms use proprietary VoIP systems, their subscribers can only connect with other members of the same platform when using conventional peer-to-peer VoIP services. By adhering to the SIPphone platform, Gizmo Project allows its users to contact anyone with a SIP number, including users of Vonage and other VoIP networks.

This is a potentially massive advantage, although admittedly the relative convenience of tapping into a larger network via open-source standards will largely depend on the adoption rate of VoIP-based services by homes, corporations and universities. It's important to note, however, that the migration to VoIP networks is growing both domestically and abroad, which is a possible indicator that Gizmo Project is on the right track.

Jason Droege, president of Gizmo Project, states that this open-source conformity allows users to quickly and easily connect their main phone line to a VoIP router (such as those made by D-Link and Linksys) to map Gizmo's services to a conventional home phone.

Although Skype also offers a similar functionality, Droege insists that the proprietary nature of the Skype network means more effort is required to make the connection. With this said, Skype is beginning to partner with Internet- and communications-oriented manufacturers to release easy-to-use Skype conversion kits for home phone lines.

Another advantage Droege claims over Skype is that although Skype utilizes the CPU cycles of users' home computers to route calls, Gizmo Projects uses its own servers and computers to do the same. To be fair, during usage tests of Skype, I noticed little impact upon overall PC performance.