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 be shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as other platforms like WhatsApp, Zoom, FaceTime, and Messenger continue to dominate the voice over IP (VoIP) communication space, pushing traditional cellphone calls, once a staple of Skype, into obsolescence.

As reported by The Verge, existing Skype users will be able to seamlessly transition to Microsoft Teams, where they can log in and access all their existing data, including message history and contacts, without the need to create a new account. However, Microsoft plans to discontinue support for domestic and international calls.

Skype users have the option to export their data, such as photos and conversation history, using a tool provided by Microsoft. This tool is especially helpful for those who do not wish to switch to Teams but still want to view their Skype chat history.

Users have 60 days to make a decision, as Skype will go offline starting May 5. Microsoft will honor existing Skype credits, but will no longer offer new customers access to paid Skype features that enable making or receiving international and domestic calls.

The major loss with the shutdown of Skype is the ability to make calls to cellphones. According to Microsoft's Amit Fulay, vice president of product, this feature was crucial during Skype’s peak when VoIP services were less common and mobile data plans were costly. "If we look at the future, that’s not a thing we want to be in," Fulay told The Verge.

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-plus million active users at the time. Skype was integrated into all Windows devices and even highlighted as a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has remained stagnant in recent years, leading to the shift in focus towards Microsoft Teams for consumers.