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

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

Author : Lucy Apr 15,2025

Microsoft has officially announced the discontinuation of Skype, set for May, with a shift towards a complimentary version of Microsoft Teams. This move coincides with the rise of dominant VoIP communication platforms such as WhatsApp, Zoom, FaceTime, and Messenger, which have largely eclipsed the traditional cellphone calling services once provided by Skype.

As detailed by The Verge, existing Skype users will seamlessly transition to Microsoft Teams, retaining access to their message history and contacts without the need for a new account. Microsoft will gradually eliminate support for domestic and international calls through Skype.

Skype users have the opportunity to export their data, including photos and chat logs, using a tool provided by Microsoft for those who wish to preserve their Skype history without migrating to Teams.

With Skype scheduled to go offline on May 5, users have a 60-day window to make their decision. Microsoft assures that existing Skype credits will be honored, though new users will no longer have access to paid Skype features for making or receiving calls.

The primary feature 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 the telephony functionality was valuable during Skype's peak, it has become less relevant as VoIP services have proliferated and mobile data costs have decreased. "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 said. "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 capabilities in real-time video and voice communications and tap into Skype's extensive user base of over 160 million active users. Skype once played a crucial role in the Windows ecosystem and was even highlighted as a key feature for Xbox consoles. However, Microsoft has acknowledged a stagnation in Skype's user growth, prompting a strategic pivot towards Microsoft Teams for consumer use.

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