MICROSOFT has announced that Skype will be retired in May 2025, marking the end of an era for the once-revolutionary online voice and video calling service. The company is encouraging users to migrate to Microsoft Teams, which will become its primary communication platform moving forward.
The announcement, made via Skype’s support account on X (formerly Twitter), directs users to sign into Teams for continued access to Microsoft’s communication services.
A legacy of digital communication
Founded in 2003 by Niklas Zennström and Janus Friis, Skype transformed digital communication by offering free voice calls between computers and low-cost calls to landlines and mobile phones. As internet speeds improved, the platform expanded to support video calls, instant messaging, file sharing, and group chats, reaching 50 million users by 2005.
Skype’s popularity led to multiple acquisitions, first by eBay for $2.6bn in 2005. However, failing to integrate the service effectively, eBay sold a majority stake to investors in 2009, who later sold it to Microsoft for $8.5bn in 2011.
The rise of rivals and Teams
Despite its early success, Skype struggled to compete with emerging platforms such as WhatsApp, Zoom, and even Microsoft’s own Teams. The rise of smartphones, improved mobile networks, and evolving user preferences led to Skype’s decline as newer platforms offered seamless mobile integration and enhanced collaboration tools.
Microsoft Teams, launched in 2017, became a preferred choice for businesses and individuals, incorporating Skype’s core features while adding modern collaboration tools.
‘We’ve learned a lot from Skype as we’ve evolved Teams over the last seven to eight years,’ said Jeff Teper, president of Microsoft 365 collaborative apps and platforms, in an interview with CNBC. ‘But we felt like now is the time to simplify things and focus on Teams to deliver faster innovation.’
Key changes for users
Microsoft has assured users that Skype group chats will remain intact during the transition. Additionally, for 60 days after the shutdown, messages sent via Teams will still be delivered to Skype contacts.
However, a major change will be the removal of Skype’s telephony features, which means users will no longer be able to call landlines or mobile numbers through the service. Microsoft stated that declining demand for traditional call services due to affordable mobile data plans influenced this decision.
End of an era
Skype’s name originated from ‘Sky peer-to-peer,’ reflecting its original architecture, which relied on a decentralised system instead of central servers. This innovation allowed Skype to scale rapidly in its early years.
With Microsoft retiring Skype after over two decades of service, its legacy as a pioneer in internet communication remains undeniable, even as users now shift toward more modern platforms like Teams.
