Two decades on, Microsoft shuts its iconic Skype

Microsoft has announced that Skype will officially be discontinued on May 5, bringing an end to the internet calling service that revolutionized global communication for over two decades. The decision aims to streamline Microsoft’s communication tools and prioritize its homegrown platform, Teams.

Launched in 2003, Skype disrupted the landline industry with its audio and video calls, gaining hundreds of millions of users at its peak. However, it has struggled to compete with newer, more user-friendly alternatives like Zoom and Slack, particularly as its technology became less suited for the smartphone era.

Microsoft acquired Skype in 2011 for $8.5 billion, outbidding Google and Facebook, when the platform had approximately 150 million monthly users. By 2020, that number had dwindled to about 23 million, despite a brief resurgence during the pandemic. During this period, Microsoft heavily promoted Teams, integrating it with Office apps to attract corporate users—a key demographic once dominated by Skype.

Skype was once synonymous with online video calls, much like Google is with search, and was even used as a verb. However, competition from FaceTime, Zoom, and Google Hangouts gradually eroded its dominance. Microsoft struggled to fully integrate aap into its ecosystem, and after launching Teams in 2017, the focus shifted entirely.

“We are honored to have been part of the journey,” Microsoft stated. “Skype has played a crucial role in shaping modern communication.”

To facilitate the transition, Skype users will be able to log into Teams for free using their existing credentials, with contacts and chats migrating automatically. While some may be surprised to learn Skype was still operational, its decline had been apparent for years.

Microsoft did not disclose Skype’s latest user figures but confirmed that there would be no job cuts as a result of the shutdown. Meanwhile, Teams continues to grow, boasting approximately 320 million monthly active users.

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