• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

EBay: Windows Update crashed Skype, but it won’t happen again

By
Jon Fortt
Jon Fortt
Down Arrow Button Icon
By
Jon Fortt
Jon Fortt
Down Arrow Button Icon
August 20, 2007, 3:35 AM ET

EBay (EBAY) this morning clarified what triggered the software glitch that crashed its Skype Internet phone service for two days last week: A Microsoft (MSFT) Windows security download that required users to restart their computers.

On the surface, it seems strange that such a routine event – restarting a computer – could disrupt a global voice communications network like Skype. But two of the features that make Skype so convenient also proved to be its Achilles heel in this instance:

(1) When a Skype user’s computer boots up, it typically tries to log into the Skype service immediately. When the Windows update prompted millions of computers to restart at roughly the same time, the Skype system was overwhelmed.

(2) Because Skype is based on peer-to-peer technology, Skype users rely somewhat on each other’s computers to make the service work. Each user computer that’s part of the Skype network can play a role in routing voice traffic and completing other tasks. How? Picture a giant safety net with lots of tiny mesh connections. Normally, the net can still work even if a few of those connections are torn. But last week so many of those connections tore that the net itself broke apart.

Worst-case scenario

On normal days, Skype’s peer-to-peer voice-over-IP structure gives it advantages over the centralized structure used by traditional telecom providers like AT&T (T), Verizon (VZ) and Sprint (S). In Skype’s own words:

Decentralized P2P networks have several advantages over traditional client-server networks. These networks scale indefinitely without increasing search time and without the need for costly centralized resources. They utilize the processing and networking power of the end-users machines since these resources always grow in direct proportion to the network itself. Each new node added to the network adds potential processing power and bandwidth to the network. Thus, by decentralizing resources, second generation (2G) P2P networks have been able to virtually eliminate costs associated with a large centralized infrastructure.

But on days like the ones Skype experienced last week, its peer-to-peer system doesn’t seem like an advantage at all. Mainstream telecom service providers pride themselves on having what they call “five nines” availability: service that’s working properly 99.999 percent of the time. A two-day disruption of traditional phone service is pretty much unthinkable, given that society relies on it not only for business and social communication, but also for emergency services.

Normally Skype’s peer-to-peer network has an inbuilt ability to self-heal, however, this event revealed a previously unseen software bug within the network resource allocation algorithm which prevented the self-healing function from working quickly. Regrettably, as a result of this disruption, Skype was unavailable to the majority of its users for approximately two days.

This Skype outage is sure to provide ammunition to rivals who wish to convince customers that they would be foolish to try to run their business on Skype alone. So although eBay is seeking to reassure its users that Skype is now fixed and ready to handle similar problems in the future, the company might have to work hard to win back the confidence of businesses.

About the Author
By Jon Fortt
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

dimon, amodei
Cybersecuritycyber
Jamie Dimon and Dario Amodei sidestep question about whether the AI cyber ‘freakout’ is warranted
By Nick LichtenbergMay 5, 2026
20 minutes ago
dario
Economydisruption
Dario Amodei spent last year warning of an AI white-collar bloodbath. Now he’s changing the narrative
By Nick LichtenbergMay 5, 2026
26 minutes ago
How the next CDC director could reshape America’s $5.3 trillion health care industry
HealthCDC
How the next CDC director could reshape America’s $5.3 trillion health care industry
By Cassie McGrath and Healthcare BrewMay 5, 2026
42 minutes ago
Trump points as he speaks with his mouth opened wide
PoliticsPharmaceutical Industry
White House estimates Trump’s Big Pharma dealmaking will save Americans $529 billion over the next 10 years
By Josh Boak and The Associated PressMay 5, 2026
45 minutes ago
rios
Success250 Years of Innovation
America 250 Chair: Americans are giving less. July 4th can be a day to change that
By Rosie RiosMay 5, 2026
51 minutes ago
Mark Zuckerberg
LawMeta
James Patterson, Biden publishers say Mark Zuckerberg ‘personally authorized’ copyright infringement in new lawsuit against Meta
By Hillel Italie and The Associated PressMay 5, 2026
58 minutes ago

Most Popular

Diary of a CEO founder says he hired someone with 'zero' work experience because she 'thanked the security guard by name' before the interview
Success
Diary of a CEO founder says he hired someone with 'zero' work experience because she 'thanked the security guard by name' before the interview
By Emma BurleighMay 3, 2026
2 days ago
Current price of silver as of Monday, May 4, 2026
Personal Finance
Current price of silver as of Monday, May 4, 2026
By Joseph HostetlerMay 4, 2026
1 day ago
America is lucky it’s no longer a manufacturing powerhouse—it’s what’s protecting the U.S. economy from the worst of the oil shock, top economist says
Economy
America is lucky it’s no longer a manufacturing powerhouse—it’s what’s protecting the U.S. economy from the worst of the oil shock, top economist says
By Sasha RogelbergMay 4, 2026
1 day ago
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
Economy
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
By Nick LichtenbergMay 3, 2026
2 days ago
Current price of gold as of May 4, 2026
Personal Finance
Current price of gold as of May 4, 2026
By Danny BakstMay 4, 2026
1 day ago
Current price of oil as of May 4, 2026
Personal Finance
Current price of oil as of May 4, 2026
By Joseph HostetlerMay 4, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.