AWS is shuttering its UCaaS offering, Chime, catalysing further discussion about the UCaaS space’s commoditisation and consolidation.
Effective almost a year from now, February 20 2026, AWS will entirely discontinue support for Chime, including Business Calling Features, meaning users can no longer host meetings, manage accounts, or access Business Calling features. Customers who need assistance deleting their data before this deadline are encouraged to contact Amazon Support for help.
AWS’s blog on the subject wrote:
After careful consideration, we have decided to end support for the Amazon Chime service, including Business Calling features, effective February 20, 2026.”
Earlier this week, news broke that Amazon had adopted Zoom as its platform of choice for internal meetings, dropping Chime in the process. An Amazon spokesperson confirmed in an email to Business Insider that the business would phase out the Chime application, citing its “limited” external use, foreshadowing its broader update.
“When we decide to retire a service or feature, it is typically because we’ve introduced something better or our partners offer a solution that is a good fit for our customers as well as our own employees. In Chime’s case, its use outside of Amazon was limited, and our partners offer great collaboration solutions, so we will lean into those.”
Amazon Chime will stop accepting new customers starting February 19, 2025. However, existing customers who created an Amazon Chime Team or Enterprise account before this date can continue using its features, including Business Calling, scheduling and hosting meetings, and user management through the administration console.
AWS has outlined instructions and best practices for Chime IT admins and users to move to alternative collaboration platforms, including those from AWS Marketplace partners such as Zoom, Cisco Webex, and Slack.
AWS notes that this does not impact the availability of the Amazon Chime SDK service. Meanwhile, Amazon Connect, AWS’s CCaaS solution, now has fully integrated voice and video calling and screen-sharing capabilities, covering much of Chime’s feature set.
What Does This Mean For The UCaaS Space?
Chime was never a major contender in UCaaS, primarily serving as the backbone for Amazon’s SDK-based comms services. Inevitably, however, its demise echoes an ongoing trend illustrated by the shuttering of Verizon’s BlueJeans video conferencing solution in 2023 and NICE’s launch of a $5-a-month UCaaS solution last year: the viable commoditisation and consolidation of the UCaaS market.
Chime’s discontinuation highlights that enterprises are doubling down on platforms that offer deep integrations, AI-powered enhancements, and comprehensive ecosystems. Microsoft and Zoom have achieved this by embedding next-level capabilities like AI copilots, workflow automation, and robust third-party integrations—elements AWS seemingly did not prioritise for Chime.
For business users and IT leaders, this move potentially signposts further market consolidation, where flexibility and interoperability become absolutely critical. Vendors that fail to provide a compelling, differentiated experience risk being edged out. It raises questions about the future of standalone UCaaS providers and whether they can survive against the ecosystem-driven titans.
“While I’m sure many of my CaaS colleagues may object to this statement, I can’t help but shake the new reality of UC as a commodity…one that is quickly going to get picked thru for parts,” wrote Liz Miller, VP and Principal Analyst at Constellation Research, on LinkedIn. “Feels like the next wave of innovation and exploration will be more focused on that intersection of data and collaboration.”
Ultimately, with dominant players like Microsoft Teams and Zoom continuing to consolidate their hold, smaller or less differentiated offerings face increasing pressure to justify their existence.
