Microsoft has confirmed that Skype, once the dominant video calling platform, will shut down permanently on 5 May 2025, ending a 22-year run that revolutionised online communication.
The tech giant announced the decision on 28 February, directing users to transition to Microsoft Teams as their new communication hub.
“In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” Microsoft stated in their official announcement.
Skype users have approximately 60 days to decide whether to migrate their data to Teams or export it before the service goes offline.
The End of an Era
Launched in 2003 by a team of Swedish, Danish, and Estonian developers, Skype quickly gained popularity for enabling free international calls at a time when traditional phone services charged high rates.
The service changed hands several times throughout its history. eBay purchased Skype in 2005 for $2.6 billion (~SGD$3.5 billion), but the partnership proved unsuccessful.
Microsoft acquired Skype in May 2011 for $8.5 billion (~SGD$11.4 billion), which was the company’s largest acquisition at that time. Following the purchase, Microsoft integrated Skype into various products, including Office and Windows Phone.
Despite once having hundreds of millions of users, Skype’s popularity has waned in recent years as competitors like Zoom, Google Meet, WhatsApp, and FaceTime captured market share.
Transition Options for Skype Users
Microsoft is offering Skype users two main options during this transition period:
- Move to Microsoft Teams for free: Users can sign into Teams using their Skype credentials, with their chats and contacts automatically appearing in the app.
- Export their Skype data: Users who prefer not to migrate to Teams can export their data, including chats, contacts, and call history.
“Skype users will be in control, they’ll have the choice. They can migrate their conversation history and their contacts out and move on if they want, or they can migrate to Teams,” Jeff Teper, president of Microsoft 365 Collaborative Apps & Platforms, told The Verge.
Teams vs. Skype
Microsoft Teams offers many of the same core features as Skype, such as one-on-one calls, group calls, messaging, and file sharing.
Additionally, Teams provides enhanced capabilities including hosting meetings, managing calendars, and building communities.
However, Microsoft will discontinue Skype’s paid calling services, which allow users to call traditional phone numbers.
These features don’t have an alternative in the Teams client, meaning Skype users will need to port their Skype phone numbers to other mobile carriers if they want to keep using them.
Shifting Focus to Improve Microsoft Teams
The shutdown comes as Microsoft focuses on Teams, which has seen substantial growth in recent years. In the past two years, the number of minutes spent in meetings by consumer users of Teams has grown four times, according to Microsoft.
The move aligns with Microsoft’s broader strategy of consolidating its communication platforms. Rather than maintaining multiple services with overlapping functions, the company is directing users toward Teams, which has experienced significant growth, particularly following the remote work boom.
Microsoft has already begun phasing out other legacy products. Last year, the company announced plans to discontinue Paint 3D after eight years and remove the Cortana voice assistant and WordPad text editor with the Windows 11 24H2 update.
For Skype users looking to make the switch, Microsoft has promised a smooth transition process.
Skype will remain available until 5 May 2025, giving users time to explore Teams and decide which option works best for them.
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