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

Microsoft has officially announced the impending shutdown of Skype, set for May, with plans to transition users to a free version of Microsoft Teams. This decision comes amidst the rise of dominant VoIP communication platforms like WhatsApp, Zoom, FaceTime, and Messenger, which have largely overshadowed Skype's direct calling capabilities.

According to The Verge, existing Skype users will have a seamless transition to Microsoft Teams. They can log into the Teams app using their current Skype credentials, and all their data, including message history and contacts, will be automatically transferred. However, Microsoft will discontinue support for domestic and international calls on Skype.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to preserve 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, though new customers will no longer have access to paid Skype features that facilitate international and domestic calls.

The primary feature being 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 now less relevant. "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 in Windows ecosystems and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has remained stagnant in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.