Microsoft to Retire Skype, Transitioning Users to Teams
In a significant shift for its communications platform, Microsoft has announced the discontinuation of Skype, the pioneering video calling and telecommunications service it acquired for $8.5 billion nearly 14 years ago. The retirement is set for May 2025, as the company aims to streamline its focus on Microsoft Teams, which has gained popularity among users for both personal and professional communication.
The Shift to Microsoft Teams
Jeff Teper, the president of collaborative apps and platforms at Microsoft, confirmed this transition in a statement on Friday. He noted, “We will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” which is currently utilized by hundreds of millions of individuals across workplaces, educational institutions, and homes.
Decline of Skype
Skype has faced increasing competition since the acquisition, with rivals such as FaceTime, WhatsApp, and Messenger gaining traction in the market. The onset of the Covid-19 pandemic further emphasized these challenges, as many users sought out Zoom for their communication needs. Although Microsoft introduced Teams for consumers in 2020 while maintaining support for Skype, the latter has struggled to retain its user base. Monthly active users plummeted from over 300 million in 2016 to just 36 million in 2023, according to the company.
A Brief History of Skype
Originally launched in 2003 by entrepreneurs Niklas Zennstrom and Janus Friis, Skype combined “Sky” and a nod to peer-to-peer networking technology. The platform evolved significantly over the years, first being acquired by eBay in 2005 for $2.6 billion before Microsoft’s landmark purchase in 2011, which at the time was its largest acquisition ever. The influx of users immediately positioned Skype on the map, but those numbers have dwindled considerably in recent times.
Transitioning Users to Teams
As Skype approaches its end, Microsoft is providing users with options to transition smoothly to Microsoft Teams. Existing users will have the opportunity to migrate their message history, group chats, and contacts without needing to create a new account. Alternatively, they can choose to export their data to an independent application.
Timeline for Transition
Skype will continue to operate until May 5, giving users ample time to determine their preferred mode of communication going forward. This window allows for a measured transition to Microsoft Teams, ensuring users can maintain their communication networks as Skype draws to a close.
