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 shifts towards apps like WhatsApp, Zoom, FaceTime, and Messenger, diminishing the need for traditional VoIP calling services like Skype.

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, using a tool provided by Microsoft for those who prefer not to switch to Teams.

You have until May 5th to decide, a 60-day window. Microsoft will honor existing Skype credits, but will cease offering paid 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 explains that while this functionality was valuable during Skype's peak popularity (when VoIP was less prevalent and mobile data was expensive), it's less relevant today. Amit Fulay, vice president of product at Microsoft, stated that this is a strategic shift based on usage trends and future vision.

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 is now focusing its consumer efforts on Microsoft Teams.