[via Skype Blog]
I find always interesting to know where a company name is coming from. Have a look at the meaning of Skype, great!
One of the names they came up with was “Sky peer-to-peer”, which got soon shortened to “Skyper”. But as happens in the Internet world, some of the domain names associated with “skyper” were already taken, so they thought what the heck, let’s just drop the “r” and make it “Skype”. It sounded good and the domains were available.
Initially the name didn’t make sense to many people. (Probably still doesn’t.) They go “Skype, what is that? A bird? Or a disease?” But after people learn about what Skype can do for them, the name seems to kind of work.