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, diminishing the need for Skype's traditional cellphone calling feature.

Existing 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. Users can also export their Skype data, including photos and chat history, using a tool provided by Microsoft.

The shutdown deadline is May 5th, giving users 60 days to migrate. While Microsoft will honor existing Skype credits, they will no longer offer paid Skype features for making or receiving international and domestic calls to new customers.

The key loss with Skype's demise is the ability to directly call cellphones. Microsoft explains that while this functionality was crucial during Skype's peak, when VoIP was less prevalent and mobile data was expensive, it's now less relevant to their future strategy. Amit Fulay, Microsoft's vice president of product, stated that this is a strategic shift based on usage trends and future market direction.

Microsoft's $8.5 billion acquisition of Skype in 2011 aimed to enhance its real-time communication offerings and leverage Skype's substantial user base. While Skype was once integral to Windows devices and even marketed as an Xbox feature, Microsoft acknowledges that user growth has stagnated in recent years. The company is now focusing its consumer efforts on Microsoft Teams.