Microsoft has officially confirmed that Skype will be discontinued on May 5, 2025, ending the once-dominant internet calling service. This decision comes 14 years after Microsoft acquired Skype for $8.5 billion in 2011. The company is now encouraging users to transition to Microsoft Teams.
For users looking to make the transition to Microsoft Teams, view our Ultimate Guide here.
The Rise and Fall of Skype
Originally launched in 2003, Skype was the original ‘communications disruptor’ by providing free internet-based voice and video calls. At its peak in 2011, Skype had around 150 million monthly active users. However, its popularity declined over time, with an estimated 23 million users in 2020.
Skype’s decline has been gradual but has been driven by several factors, including competition from more modern platforms like Zoom, WhatsApp, and Apple’s FaceTime. Additionally, Skype struggled to keep up with the mobile-first digital landscape, leading to performance issues that frustrated users. When the COVID-19 pandemic created an unprecedented demand for virtual communication, Microsoft prioritized Teams over Skype, integrating it deeply with Office 365, which helped Teams grow to over 320 million monthly active users.
Transitioning from Skype to Teams
To ease the transition, Microsoft will allow users to log into Teams using their existing Skype details. Contacts and chat histories will be automatically transferred to Teams. However, Microsoft will discontinue Skype’s phone call functionality, meaning users can no longer make domestic or international calls via Skype. Any existing Skype credits and subscriptions will remain valid until their next renewal period.
A Strategic Shift for Microsoft
With Teams at the center of its communication strategy, this was an obvious move from the technology giant. As Microsoft pivots its focus to the new AI landscape and it’s Copilot product, Skype was a product without an obvious future.
While Skype’s shutdown marks the end of an era, its legacy will certainly not be forgotten (by anyone over the age of 35!).
