Microsoft Announces That Skype Will Shut Down in May

Microsoft officially shut down Skype, the video calling service that it acquired for $8.5 billion in 2011, which played a pivotal role in revolutionizing online communication

The tech giant announced on Friday that Skype will retire in May. Some of his features are integrated into the Microsoft Team, the leading platform for video conferencing and team collaboration. Skype’s users can register with their teams with their existing accounts.

For many years, Microsoft has prioritized teams compared to Skype. This decision reflects a strategy that integrates communication services and competes with other important platforms in the market.

The Rise and Legacy of Skype

Skype was founded in 2003 by engineers in Tallinn, Estonia, and became a game-changer by enabling phone calls over the internet instead of traditional landlines. Utilizing voice over internet protocol (VOIP) technology, the platform converted audio into digital signals transmitted online. After eBay acquired Skype in 2005, it introduced video calls, further enhancing its appeal.

“You no longer had to be a senior executive at a Fortune 500 company to have high-quality video calls,” said Barbara Larson, a management professor at Northeastern University specializing in remote work. “Skype brought people around the world closer together.”

Skype’s ability to bypass expensive international phone charges made it indispensable for startups, professionals, and everyday users alike.

“You could suddenly have long, frequent calls that were either free or very inexpensive,” Larson added. However, like other digital platforms, Skype also became a tool for scammers.

By the time Microsoft acquired Skype in 2011, the platform had approximately 170 million users worldwide. Then-CEO Steve Ballmer called Skype a household name, stating, “The Skype brand has become a verb, nearly synonymous with video and voice communications.”

Skype’s Decline and the Rise of Teams

Skype remained a cutting-edge tool in 2017, even being used by President Donald Trump’s administration to connect with journalists outside the White House press briefing room. However, just a month later, Microsoft launched Teams to compete with emerging workplace collaboration tools like Slack.

The rise of platforms like Zoom, Slack, and Microsoft Teams was accelerated by the COVID-19 pandemic, as businesses, families, and friends sought reliable virtual communication tools. By that point, app had already begun to lose relevance but had undeniably paved the way for modern remote collaboration.

“Higher-quality media has the power to deepen relationships and help people tackle complex challenges more effectively,” Larson said. “Skype made this accessible to anyone with a decent internet connection, and that was its revolutionary impact.”

With Skype’s official retirement, Microsoft is shifting its focus entirely to Teams, bringing an end to a service that helped shape the digital communication landscape for over two decades.