Microsoft has officially announced that Skype, once a dominant platform for internet-based phone and video communication, will be discontinued on May 5, 2025. Users will be able to migrate their accounts and data to Microsoft Teams, the company’s newer collaboration platform, which offers a free tier with similar functionalities.
Skype, launched in 2003 in Estonia, revolutionized global communication by enabling free international calls over the internet. It was acquired by Microsoft in 2011 for $8.5 billion, marking the company’s largest acquisition at the time. However, Skype’s popularity has waned over the years due to competition from platforms like Zoom, WhatsApp, and even Microsoft’s own Teams. At its peak, Skype boasted over 300 million monthly active users but saw this number drop to approximately 36 million by 2023.
Microsoft’s decision to retire Skype aligns with its strategy to focus on Teams, which has grown to over 320 million monthly users. Teams integrates advanced features such as AI capabilities and caters to both personal and professional needs. Jeff Teper, president of Microsoft 365 Collaborative Apps and Platforms, emphasized that this transition reflects the evolution of communication technologies and aims to streamline Microsoft’s offerings.
Skype’s legacy includes pioneering VoIP technology and introducing AI-powered real-time language translation. Despite its decline, it remains a significant milestone in the history of digital communication.