Microsoft has officially announced that it will shut down Skype permanently in May 2025, marking the end of an era for one of the most popular video calling and messaging platforms. The company is now urging Skype users to switch to Microsoft Teams, a more modern communication and collaboration tool.
Jeff Teper, president of Microsoft 365 collaborative apps and platforms, confirmed that Skype’s retirement is part of a strategy to streamline Microsoft’s communication services. This move will allow the company to focus on Teams, which has become the preferred platform for business and personal communication.
Microsoft Encourages Users to Move to Teams
To help with the transition, Microsoft will allow Skype users to log into Teams using their existing Skype credentials. Users will also be able to transfer all their Skype contacts and chat history to Teams. For those who do not want to use Teams, Microsoft is offering an option to export their Skype data before the shutdown.
Teper acknowledged Skype’s contribution to the digital communication industry and stated that Microsoft has learned a lot from Skype’s development over the years. Many of those lessons have helped improve Microsoft Teams, which is now the company’s main focus for video calls, messaging, and online meetings.
Rise and Fall of Skype
Skype was first launched in 2003 as a free online calling tool and quickly became popular worldwide. By 2005, the platform had 40 million users, which led to its $2.6 billion acquisition by eBay. Over the next few years, Skype continued to grow, reaching 405 million users by 2008.
In 2011, Microsoft acquired Skype for $8.5 billion, hoping to strengthen its position in the digital communication industry. However, competition from Apple’s FaceTime and Meta’s WhatsApp started to impact Skype’s popularity. Users also complained about frequent redesigns, including one that made the app look similar to Snapchat.
Meanwhile, Microsoft launched Teams in 2017 as a workplace communication tool to compete with Slack. Teams provided better integration with Microsoft 365, making it more appealing for businesses and remote work.
Struggle During Covid-19 Pandemic
During the COVID-19 pandemic, demand for video conferencing apps skyrocketed, but Skype struggled to keep up.
- Zoom became the most popular choice, with a 1,900% increase in daily users in early 2020.
- Microsoft Teams also gained popularity, growing by 894% between March and June 2020.
- Skype, on the other hand, saw only a 70% increase from February to March 2020.
By 2023, Skype’s daily active users dropped to 36 million, down from 40 million in early 2020. In comparison, Microsoft Teams had 320 million users by April 2024.
End of an Era for Skype
Microsoft’s decision to retire Skype marks the end of an important chapter in digital communication history. Teper described this as “a big, big moment” for Microsoft, adding that Skype played a pioneering role in online audio and video calling.
While Skype will soon be discontinued, its legacy will continue through Microsoft Teams, which is now the company’s flagship communication platform. Users who wish to continue using Microsoft’s video calling services will need to migrate to Teams before May 2025.
