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

Microsoft has officially announced that it will discontinue Skype in May, opting instead to introduce a free version of Microsoft Teams to take its place. This decision comes as other platforms like WhatsApp, Zoom, FaceTime, and Messenger have become the go-to choices for voice over IP (VoIP) communication, pushing traditional cellphone calls facilitated by Skype into obsolescence.

According to The Verge, existing Skype users will seamlessly transition to Microsoft Teams, where they can access all their previous content, including message history and contacts, without needing to set up a new account. However, Microsoft plans to eliminate support for domestic and international calls.

For those not interested in switching to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to retain their chat records. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft assures that existing Skype credits will be honored, but new customers will no longer have access to paid Skype features for making or receiving calls.

The primary feature lost with Skype's shutdown is the ability to make calls to cellphones. Microsoft's vice president of product, Amit Fulay, explained to The Verge that while this functionality was valuable during Skype's peak, it is less relevant today. "Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive," Fulay stated. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its focus on real-time video and voice communications and tap into Skype's 160 million active users. Skype once played a significant role across Windows devices and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's user base has stagnated in recent years, shifting their focus to Microsoft Teams for consumer use.