Microsoft is retiring Skype, the internet calling service that once transformed global communication, this May. This move, announced on February 28th, allows Microsoft to consolidate its communication offerings and focus on its more modern Teams platform.
Skype, founded in 2003, quickly gained widespread popularity through its affordable audio and video calls. The company, at its peak, boasted hundreds of millions of users. However, in recent years, Skype has faced increasing competition from more user-friendly and technically advanced platforms such as Zoom and Slack, developed by Salesforce.
The platform’s decline can be attributed in part to the limitations of its underlying technology in the age of smartphones. When the global pandemic spurred a surge in online business communications, Microsoft focused on Teams. By aggressively integrating Teams with its other Office applications, Microsoft was able to attract the corporate users that were once Skype’s main base.
To make the transition easier for users, they will be able to use their existing Skype credentials to access Teams for free on any supported device. Existing chats and contacts will also be automatically transferred.
Skype joins a list of Microsoft ventures that didn’t achieve expectations, including the Internet Explorer web browser and Windows Phone. Other tech giants have also struggled with online communication tools, with Google making several attempts with apps like Hangouts and Duo.
Microsoft declined to release the most recent user figures for Skype and stated that no job cuts will result from the shutdown. The company also noted that Teams has roughly 320 million monthly active users.
Microsoft acquired Skype in 2011 for $8.5 billion after outbidding Google and Facebook. At the time, this was Microsoft’s largest acquisition. At that point, the service had about 150 million monthly users. However, by 2020, figures had fallen to approximately 23 million, despite a slight increase during the pandemic.
On February 28th, Microsoft acknowledged Skype’s historical significance, stating that it “has been an integral part of shaping modern communications.” The company added, “We are honoured to have been part of the journey.”
