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We used skype at my last shop and it was not very smooth. I prefer self-hosted jabber / XMPP.

I suspected many in the community here would host their own XMPP server.

What XMPP server are you using or would you use?

I've had great luck with prosody. I used to use jabberd2, but I switched away from it due to its dependencies on various badly-maintained libraries.

We also use Prosody and like it. For us it's been very close to an "it just works" solution.