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, transitioning users to a free version of Microsoft Teams. This move comes as communication platforms like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP communication, rendering traditional cellphone calls via Skype less relevant.

Existing Skype users can seamlessly transfer their data (messages, contacts) to Microsoft Teams without creating a new account. However, Microsoft will discontinue support for domestic and international calls. Users can also export their Skype data, including photos and chat history, using a provided tool. A 60-day window, ending May 5th, allows users to make this transition. Microsoft will honor existing Skype credits but will cease offering paid Skype features for making calls.

The primary loss with Skype's shutdown is the ability to make calls to landlines and cellphones. Microsoft explained to The Verge that while this functionality was valuable during Skype's peak, evolving communication trends and readily available VoIP and affordable mobile data plans have diminished its significance. Microsoft's VP of Product, Amit Fulay, stated that this isn't a market they wish to remain in.

Microsoft acquired Skype in 2011 for $8.5 billion, aiming to enhance its real-time communication offerings and leverage Skype's substantial user base. While Skype once held prominence on Windows devices and was even an Xbox selling point, Microsoft acknowledges recent stagnation in its user base. The company's current consumer communication focus is now solely on Microsoft Teams.