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 services like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP communication, rendering traditional Skype cellphone calls less relevant.

Current Skype users can seamlessly transition to Microsoft Teams; their message history, contacts, and other data will be accessible 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 conversation history, or use a provided tool to view their chat history without migrating.

You have until May 5th to decide. Microsoft will honor existing Skype credits but will no longer offer paid Skype features for making international and domestic calls to new customers.

The key loss with Skype's shutdown is the ability to make calls to cell phones. Microsoft explains that while this was valuable during Skype's peak when VoIP and mobile data were less accessible, it's no longer a priority. Amit Fulay, Microsoft's vice president of product, stated that this functionality is less relevant given current trends in usage and the availability of affordable mobile data plans.

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its real-time communication offerings and leverage Skype's then-massive user base (over 160 million active users). While Skype was once integral to Windows devices and even promoted as an Xbox feature, Microsoft acknowledges that user growth has plateaued. The company is now focusing on Microsoft Teams for consumer use.