End of an Era: Microsoft Announces Shutdown of Skype After 20+ Years

Skype will officially shut down on May 5. This marks the end of a service that has played a big role in how we connect globally for nearly 20 years.

Microsoft, the owner of Skype, aims to focus its efforts on Teams. They believe that simplifying their communication tools will benefit users.

Launched in 2003, Skype transformed communication. With its audio and video calling features, it quickly became popular and reached hundreds of millions of users. However, it has faced tough competition from newer platforms like Zoom and Slack, which have been easier to use and more suited to smartphones.

When the pandemic hit, more people turned to online calls. Microsoft saw this as an opportunity to promote Teams by integrating it with their Office apps, shifting focus from Skype, which was once a favorite for businesses.

Skype was once synonymous with online video calling. Its name became a verb, much like how people use “Google” to describe searching online.

In 2011, Microsoft purchased Skype for $8.5 billion, outbidding major competitors like Google and Facebook. At the time, Skype had around 150 million users, but by 2020, that number plummeted to about 23 million, despite a brief uptick during the pandemic.

Microsoft struggled to integrate Skype into its other products. With the rise of Apple’s FaceTime and Google’s efforts in communication, Skype found it challenging to stay relevant. In 2017, when Teams debuted, it quickly became Microsoft’s main focus.

Microsoft acknowledged Skype’s impact, saying they were proud to have been part of its journey in shaping modern communication.

To help users transition from Skype, they can easily set up Teams using their existing Skype accounts. Their chats and contacts will transfer automatically, making the change smoother.

Some may be surprised that Skype is still operating, given how Microsoft has shifted focus away from it for years. Many big tech companies have struggled to launch successful communication tools. Now, Skype joins the ranks of other discontinued services like Duo and AOL Instant Messenger.

Microsoft did not provide the latest user numbers for Skype and assured that no jobs would be lost due to this change. Currently, Teams boasts about 320 million active users monthly.