End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

Microsoft is shutting down Skype in May, transitioning users to a free version of Microsoft Teams. This move comes as VoIP services like WhatsApp, Zoom, FaceTime, and Messenger dominate the communication landscape, rendering traditional cellphone calls via Skype less relevant.

Current Skype users can seamlessly transfer their data (messages, contacts) to Microsoft Teams without creating a new account. However, Microsoft will discontinue support for domestic and international calls. A data export tool is available for users who prefer not to migrate to Teams, allowing them to download their chat history and photos.

Users have a 60-day window (until May 5th) to decide. Existing Skype credits will be honored, but Microsoft will no longer offer paid Skype features for making international and domestic calls to new customers.

The primary loss with Skype's closure is the ability to make calls to cell phones. Microsoft explained to The Verge that while this functionality was crucial during Skype's peak, its importance has diminished due to widespread VoIP availability and affordable mobile data plans. Microsoft's VP of product, Amit Fulay, stated that this isn't a market segment they wish to pursue.

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its real-time communication offerings and leverage Skype's vast user base (then over 160 million). While Skype was once integral to Windows devices and even an Xbox selling point, user growth has stagnated in recent years, prompting Microsoft's shift towards a consumer-focused Microsoft Teams.