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 competitors like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP communication, rendering traditional Skype cellphone calls 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 is available for this transition, beginning May 5th. Microsoft will honor existing Skype credits, but will not offer new paid Skype calling features.

The key loss with Skype's closure is the ability to make calls to landlines and cell phones. Microsoft explains that while this was crucial during Skype's peak, when VoIP and mobile data were less prevalent, it's now less significant. Amit Fulay, Microsoft's vice president of product, stated that this functionality is no longer a priority for the company's future plans.

Microsoft's 2011 acquisition of Skype for $8.5 billion aimed to enhance its real-time communication offerings and leverage Skype's vast user base (then over 160 million). While Skype was once integral to Windows devices and even promoted as an Xbox feature, Microsoft acknowledges recent user base stagnation. The company is now prioritizing Microsoft Teams for consumer use.