End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

Microsoft is shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as communication platforms like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP communication, rendering traditional Skype-to-cellphone calls less relevant.

Current Skype users can seamlessly transition to Microsoft Teams; their message history, contacts, and other data will be readily available without needing a new account. However, Microsoft will discontinue support for domestic and international calls. Users can also export their Skype data, including photos and conversation history, or utilize a provided tool to review their chat history without migrating to Teams.

You have until May 5th to decide. Microsoft will honor existing Skype credits, but will cease offering paid Skype features for making international and domestic calls to new customers.

The primary loss with Skype's shutdown is the ability to make calls to cell phones. Microsoft explained to The Verge that while this functionality was crucial during Skype's peak, its importance has diminished due to widespread VoIP availability and affordable mobile data plans. Amit Fulay, Microsoft's vice president of product, stated that this functionality is no longer a strategic priority for the company.

Microsoft acquired Skype in 2011 for $8.5 billion, aiming to enhance its real-time communication offerings and leverage Skype's then-massive user base. While Skype was once integral to Windows devices and even promoted as an Xbox feature, Microsoft acknowledges that its user base has plateaued in recent years. The company's consumer communication focus now rests squarely on Microsoft Teams.