Microsoft Shuts Down Skype, Signaling the End of an Era
In a move that underscores the changing landscape of digital communication, Microsoft is ending support for Skype after two decades. The decision highlights how Microsoft’s focus has shifted, rendering the once-ubiquitous platform redundant.
It’s hard to imagine what the boardroom discussion looked like when then-CEO Steve Ballmer approved the $8.5 billion acquisition of Skype in 2011. At the time, it was the largest acquisition in Microsoft’s history. The deal came six years after eBay bought the company and failed to integrate it effectively, taking a substantial write-off. Yet Microsoft saw potential, and the deal went through.
When Microsoft took over, Skype boasted over 100 million users. This period represented the peak for what was arguably the original and first popular online voice and video communication platform. Though it survived for nearly 14 years after the acquisition, Microsoft’s announcement signals Skype’s ultimate demise.
Skype could have found its moment during the COVID-19 pandemic. The sudden shift to remote work presented a perfect opportunity. Owned by a tech giant, Skype should have become the default communication platform for many reasons. Zoom, however, quickly became dominant for tasks such as school, work, and socializing.
Microsoft’s decision to develop Teams further eroded Skype’s position. While initially designed to compete with Slack, Teams’ video calling capabilities made Skype’s existence somewhat unnecessary. If teams were already using Teams for collaboration, Skype’s value diminished.
As Steve Jobs, Apple’s iconic founder, famously noted, “If you don’t cannibalize yourself, someone else will.” This concept is applicable to this decision. Microsoft ultimately created its own product, Teams, which replaced Skype over time.
Skype enjoyed a strong brand. It achieved great success as a technological idea. But for many companies that tried to find ways to integrate Skype into their product lines, this proved to be a real challenge.
Personally, I used Skype for endless conversations, podcasts, and meetings. It feels nostalgic, now. It was remarkable to be on a video call not so long ago. Nowadays, people use Zoom, Teams, Slack, and FaceTime.
As I read the announcement, I wasn’t sure what surprised me more: that Microsoft was shutting down Skype, or that it had not been sooner. It certainly marks the end of an era, and I will miss it.
