The thing about the Internet is the openness. People can link to each other themselves.

When we look at investing, we always think about 'how defensible is this, how likely is it that somebody is going to copy this.' E-commerce tends to be something easy to copy because it's execution.

If you can use a Web browser, you can use Skype.

If you could utilize the resources of the end users' computers, you could do things much more efficiently.

Another differentiator is that Skype is free and simple to set up, and it costs us virtually nothing for a new user to join the Skype network, which is why we can offer the service for free.

Some Internet operators are concerned that video services such as Netflix and YouTube consume lots of the bandwidth on the network. While there is some truth to this, my guess is that the operators wished they could provide the same kind of services with the same success as Netflix and YouTube.

As an investor, what we're not looking for is 'oh this is a cool app,' it's 'is this something that can become a big business?' You need to find those that can become real businesses.