Being Info 
Skype will ring for the last time on 5 May as owner Microsoft retires the two-decade-old internet calling service that redefined how people connect across borders.
Shutting down Skype will help Microsoft focus on its homegrown Teams service by simplifying its communication offerings, the office software giant said on Friday.
Rise and Acquisitions
Launched in 2003, Skype quickly gained traction with free voice calls over the internet. By 2005, it had 50 million users. eBay acquired it for $2.6 billion but failed to integrate it. A consortium including Andreessen Horowitz and technology investor Silver Lake took over Skype in 2009. In 2011, Microsoft bought Skype for $8.5 billion, outbidding Google and Facebook.
People took to social media to share their views on Skype’s shutdown. While some called it inevitable, others recalled their experiences with the app.
An X user commented, “Skype had a 17-year head start and cracked under pressure in 2020. Its fumble during the pandemic will be studied for centuries.”
— ninewontmiss (@ninewontmiss)
Streaming platform Discord posted on X, “Thank you for walking so we could run. RIP to the OG gaming chat app.”
— discord (@discord)
Failure to Adapt
Skype’s technology, designed for desktops, struggled in the smartphone era. Unlike cloud-based competitors such as WhatsApp and Zoom, Skype relied on peer-to-peer connections, making it inefficient. Microsoft attempted a cloud transition, but Teams became the priority, especially during the remote work boom.
Microsoft said on Friday, “Skype has been an integral part of shaping modern communications. We are honoured to have been part of the journey.”
Strategic Shift
Microsoft integrated Teams with Office 365, positioning it as the primary communication tool, sidelining Skype. The service will be phased out, with accounts and chats migrating to Teams. Skype’s telephony features, including landline and mobile calls, will be discontinued at that time.
After kickstarting the market for making calls over the internet 23 years ago, Skype is closing down. Microsoft, which acquired the messaging and calling app 14 years ago, said it will be retiring it from active duty on May 5 to double down on Teams. Skype users have 10 weeks to decide what they want to do with their account.
It’s not clear how many people are impacted. The most recent numbers that Microsoft had shared were in 2023, when it said it had more than 36 million users — a long way from Skype’s peak of 300 million users.
Jeff Teper, president of Microsoft 365 collaborative Apps and platforms, stated, “At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation.”
User Numbers and Business Case
While Skype ushered in a new era of internet-based communication, starting with voice before expanding to video and file-sharing, the arrival of smartphones and a swathe of new messaging apps have taken a toll on Skype’s user count through the years. For context, WhatsApp sailed past 2 billion users in 2020.
When Skype filed for an IPO in 2010, it revealed 560 million registered users and 124 million monthly active users. Microsoft acquired Skype in 2011 and grew the platform to a peak of 300 million users in 2013. The most recent update Microsoft provided was via a blog post in early 2023, revealing that “more than 36 million people use Skype daily to connect through phone calls and chats” globally.
Microsoft believes that now is the right time to go all in on Teams.
Phone Home: The Transition Plan
Microsoft is encouraging users to move over to Teams Free, which offers features such as calendar integrations but lacks key Skype features like phone-call functionality to mobile and landline numbers. Microsoft began deprecating these services back in December, preventing users from adding credit to their accounts while halting new Skype numbers.
For legacy users who still have credit, Microsoft will make a Skype Dial Pad available both in the Skype web portal and in Teams for an indefinite period. “We’ll support this as long as users have credit and they’re using this functionality,” said Microsoft VP of product Amit Fulay.
During the transition period, Skype users will be able to download the Teams app and log in with their Skype credentials, migrating all their chats and contacts automatically. Skype will continue to work in tandem until May 5, 2025. Alternatively, users can export their data.
If a user takes no action by May 5, Skype says it will retain user data until the end of the year, after which it will be deleted.
The Future of Communication
The lines between business and consumer communication have blurred, with Microsoft betting that Teams will work for both. While Skype started as a consumer product that moved into business, Teams started as a business product that expanded into the consumer space.
Jeff Teper noted, “If you think about Word, Excel, PowerPoint, those are brands that work for business and personal use for people. We have kids and parents doing their homework in Word, and budgets in Excel, so we have good precedent about our tools being used in personal and work life.”
So, mark your calendars for 5th May 2025. Whether you’re migrating to Teams or bidding a quiet goodbye, this isn’t the end of connection — it’s the start of something new. After all, in this ever-evolving digital world, we’re just getting started.
