The deal by Microsoft to buy Skype, an Intel dividend, and solid financials from Symantec has helped retain high levels of confidence in IT although Cisco reported disappointing earnings this week. Markets across the board were lifted following Microsoft’s deal worth $8. 5 billion to purchase buy the Web phone and video service company. However, some analysts were wary of the decision since the bought company has had a rough financial and organizational history. Microsoft intends to incorporate Skype—its largest acquisition in history—into its gaming devices, Windows Phone OS, and communication application like Outlook. Steve Ballmer, Microsoft CEO, promised to make Skype compatible with non-Microsoft products. Skype has almost 170 million users. However, its earnings history is dodgy with EBay buying it three years after Skype was founded in 2003. Profits for EBay were disappointing forcing it to resell it to a private investment group for $1.9 billion, 0.7 billion less than its cost price. Microsoft, however, possess vast resources to use Skype effectively in its attempt to come good in the Web mobile communications and video arena.

This move puts Microsoft in the race against bigger competitors like Google and Apple with Android and iPhone respectively as put by independent analyst Jeff Kagan in an e-mail.

Announcement by AT&T regarding plans to acquire T-Mobile for $39 billion, that by Intel announcement that it would increase its dividend, followed by the above by Microsoft led investors to see this as a sign that cash-rich IT and telecom companies are ready to loosen their purses to purchase technology in a fast-paced market and start paying back investors after years of record-breaking earnings. Subsequently, all US exchanges jumped at this news with tech-savvy Nasdaq leaping by 28.64 poiints to 2871.89 on Tuesday.

Intel’s dividend announcement particularly soothed investors who have seen the company dominate the market albeit with shares lagging behind other chip makers. Intel will up its quarterly dividend to $0.21 per share up from $0.184 to create investor confidence. President and CEO Paul Otelleni stated that Intel’s current and projected growth is generating robust cash flow allowing for increases in the dividend. Record increase on 20% in the sales in 2011 is forecast.

Intel is globally dominant, but the chip landscape is shifting with growing mobile use and chip designer ARM gaining traction. Intel shares have appreciated 5.8% over the last year, but the Philadelphia Semiconductor Index of sector stocks has risen by 22%. However, Intel shares jumped to $23.03 by $0.27 following the dividend announcement.

Symantec—leader in software security—reported on Wednesday and Thursday respectively gains of 9% in fourth quarter profit to $1.67 billion and of 3% to %6.19 billion in revenue. Largest disappointment of the week, however, came from Cisco reporting on Wednesday that sales for the quarter ended on April 20 with a sluggish 4.8% year-over-year, ending at %10.9 billion. Net income was $1.8 billion or $0.33 per share down from $0.37 per share the last year. Job cuts may be on the cards to focus on core routing and switching businesses.