Microsoft to shut down Skype in two months: Microsoft has officially announced that it will be shutting down Skype permanently on May 5, 2024, bringing an end to the video calling service after 21 years.
The decision comes as the company shifts its focus toward Microsoft Teams, a platform that has gained significant traction in recent years, especially in the business and enterprise sectors.
Since its launch in 2003, Skype has been a pioneer in online audio and video communication, revolutionizing the way people connected across the globe.
At its peak, the platform boasted millions of users and played a key role in shaping modern digital communication. However, over time, competition from platforms like Apple’s FaceTime, Zoom, Google Meet, and WhatsApp eroded Skype’s dominance.
Microsoft acquired Skype in 2011 for $8.5 billion, hoping to integrate it into its ecosystem and leverage its popularity. However, as mobile-first and cloud-based communication platforms emerged, Skype struggled to keep up with the evolving landscape. The COVID-19 pandemic further accelerated this shift, with Zoom quickly becoming the preferred platform for video conferencing worldwide.
Speaking with CNBC, Jeff Teper, President of Microsoft 365, explained that the decision to retire Skype was based on Microsoft’s goal of streamlining its services and focusing on Teams.
“We’ve learned a lot from Skype over the years that we’ve put into Teams as we’ve evolved Teams over the last seven to eight years,” Teper said.
He added, “We felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams.”
As the shutdown date approaches, Microsoft is encouraging Skype users to migrate to Microsoft Teams, which offers similar functionalities but is more integrated within the company’s suite of productivity tools.
Over the coming days, Skype users will be given the option to log into Teams using their existing Skype credentials. Any remaining Skype credits or subscriptions will also be transferred to Teams automatically.
Teper acknowledged the significance of this transition, saying, “This is obviously a big, big moment for us, and we’re certainly very grateful. Skype pioneered audio and video calling on the web for many, many people.”
Skype’s journey has been a remarkable one. Just a year after its 2003 launch, it had already amassed 11 million registered users. By 2005, its user base had grown to 54 million, leading eBay to purchase the platform for $2.6 billion. However, as technology evolved, Skype struggled to maintain its leadership position.
Microsoft’s shift to cloud-based and mobile-first communication is reflective of broader industry trends. Teper summed up the platform’s decline, saying, “A good write-up of the history of Skype would mark the shift to mobile and cloud as a significant change in the communications category.”