Microsoft is killing Skype to steer users toward Teams

Microsoft is shutting down Skype, the ground-breaking service that popularised internet voice and video calls, 22 years after it was founded. The tech giant will be retiring the app from May 5 and is urging users to sign up to Microsoft Teams instead. It’s unclear how many users Skype currently has; at its peak, the service counted 500 million users before slipping to 36 million in 2023.

To ease the transition, Microsoft is allowing Skype users to log into Teams with their existing credentials, with chats and contacts transferring automatically. In the meantime, Skype and Teams users can still message and call each other, ensuring no immediate disruption.

Those who prefer not to switch can export their Skype data, including chats, contacts, and call history, before the shutdown. Microsoft is also winding down Skype’s paid features, including Skype Credit and call subscriptions for new customers. Existing users can continue using their credits and subscriptions until their next renewal period but, after May 5, the Skype Dial Pad will only be accessible via the Skype web portal and within Teams.

In 2003, two Scandinavian entrepreneurs, Niklas Zennström and Janus Friis, launched Skype with a simple yet game-changing idea: allow people to make free voice and video calls over the internet. By offering high-quality audio, ease of use, and the ability to connect with members around the world, Skype soared in popularity, eventually attracting more than half-a-billion users. Its dominance was fuelled by its status as the only game in town at a time when international calling was costly and unreliable.

The app changed hands in 2005 when eBay acquired it for $2.6bn (£2bn), before Microsoft took over in 2011 for a whopping $8.5bn (£6.7bn), aiming to make it central to its communication strategy across Windows, Office, and Xbox. But as the years passed, new rivals dulled its shine. WhatsApp, Facebook Messenger, and Zoom eventually surpassed Skype by offering simpler, faster, and more mobile-friendly experiences, while the internet calling space splintered into business-focused software for computers and personal messaging apps for phones.

Skype is not the only communications platform to meet its demise. It’s now headed to the internet graveyard alongside bygone relics and failed experiments like MSN Messenger, Yahoo Messenger, and Google Hangouts. As Microsoft announces the death of Skype, it marks the end of an era for a tool that once bridged distances and brought millions together – forever changing the way we talk to each other.