Skype, the pioneering internet calling service, will be shut down by Microsoft on May 5th, ending a two-decade run that reshaped global communication.
A Pioneer in Communication
Founded in 2003, Skype quickly became a household name by offering audio and video calls that disrupted the traditional landline industry. At its peak, the platform boasted hundreds of millions of users, connecting people across borders in ways previously unimaginable.
Shifting Priorities
Microsoft’s decision to retire Skype reflects a strategic shift toward its Teams platform. The company stated that shutting down Skype will allow it to streamline its communication services and focus on Teams, which has become a central part of its office software ecosystem.
In a statement, Microsoft said, “We are honored to have been part of the journey. Skype has been an integral part of shaping modern communications.”
Challenges in a Changing Landscape
Skype struggled in recent years to maintain its competitive edge against rivals like Zoom and Slack, which offered easier-to-use and more reliable services. Skype’s underlying technology also proved less adaptable to the growing popularity of smartphones.
The rise of remote work during the pandemic further accelerated this trend. Microsoft successfully integrated Teams with its Office apps, attracting corporate users, a critical segment that Skype once dominated.
A Legacy of Innovation
Before the rise of FaceTime, Zoom, and Google Hangouts, Skype was the go-to platform for online video communication. It was so ubiquitous that “Skyping” became a common verb.
Microsoft acquired Skype in 2011 for $8.5 billion, outbidding Google and Facebook in what was then its largest deal. At the time of the acquisition, Skype had approximately 150 million monthly users. By 2020, that number had fallen to around 23 million, despite a brief surge during the pandemic.
Transition to Teams
To ensure a smooth transition, Skype users will be able to log into Teams for free on any supported device using their existing credentials. Chats and contacts will automatically migrate.
Microsoft declined to share the latest user figures for Skype and said that there would be no job cuts due to the move. Teams currently has about 320 million monthly active users.
