In a move signaling the close of an era, Microsoft is shutting down Skype after 21 years. The platform, once a giant in the world of online communication, will soon be retired.
Back in 2011, when Microsoft acquired Skype, the service boasted over a hundred million users. It was the largest acquisition in Microsoft’s history at the time, costing the tech giant more than US$8 billion. Six years prior, eBay had initially purchased Skype for US$2.5 billion, but ultimately didn’t manage to develop it into a successful venture, taking a significant loss before selling a majority stake to outside investors.
Looking back, the acquisition marked the high point for the original mainstream voice and video communications platform. Skype managed to remain relevant for nearly 14 more years. However, Microsoft has now announced its permanent shutdown.
Skype could have had its moment five years ago when the pandemic hit. As remote work became the norm, video meetings became essential. With Microsoft’s backing, Skype should have become the go-to platform for communication. Instead, Zoom emerged as the default for everything from virtual classrooms to family gatherings.
Even Microsoft introduced its own competitor. Teams, initially designed to rival Slack, incorporated video calling features, creating overlap with Skype. If a team was already using Teams for collaboration, Skype became redundant.
As Steve Jobs, Apple’s iconic founder, famously said, “If you don’t cannibalise yourself, someone else will.” The iPod, made obsolete by the iPhone, is a prime example. Another company was eventually going to release a device that could do more than just play music. The same principle is true for Microsoft, since different companies sought ways to integrate Skype into different products. Despite the powerful brand, none were successful.
While it’s debatable whether Skype was ever a major business success, it was, without a doubt, a success as a product idea. It was used for countless meetings, conversations with friends, and even recording podcasts. Getting on a video call once felt remarkably futuristic, invoking a sense of nostalgia for the ‘old days’. Nowadays, users opt for FaceTime for person-to-person calls and Zoom or Teams for professional uses. Upon reading the announcement, the question isn’t whether Microsoft was shutting down Skype but why it hadn’t done so sooner. Regardless, it certainly is the end of an era.
