Skype is set to come to an end on May 5 as Microsoft, its owner, will retire the two-decade-old internet calling service that revolutionized cross-border connections. Microsoft stated on Friday that shutting down Skype will allow them to concentrate on their in-house Teams service, streamlining their communication offerings.
Initially launched in 2003, Skype's audio and video calls disrupted the landline industry in the early 2000s, amassing hundreds of millions of users at its peak. However, the platform struggled to keep pace with more user-friendly and reliable competitors like Zoom and Salesforce's Slack in recent years, in part because its technology was not well-suited for the smartphone era.
During the rise of online business calls prompted by the pandemic and remote work, Microsoft promoted Teams by seamlessly integrating it with other Office apps to appeal to corporate users, a segment that was once loyal to Skype.
To facilitate the transition from Skype, users will be able to access Teams for free on any supported device using their existing credentials, with chats and contacts transferring automatically.
Skype joins a list of Microsoft's ambitious endeavors that did not meet expectations, along with Internet Explorer and Windows Phone. Several other tech giants, such as Google with Hangouts and Duo, have also faced challenges with online communication tools.
Microsoft did not disclose the current user figures for Skype and assured that no jobs would be affected by this decision. They mentioned that Teams currently boasts around 320 million monthly active users.
After acquiring Skype for $8.5 billion in 2011, Microsoft, beating out Google and Facebook in its largest deal at the time, saw the service's monthly users drop from around 150 million in 2011 to approximately 23 million in 2020. Despite a brief resurgence during the pandemic, the numbers dwindled.
In a statement released on Friday, Microsoft expressed that "Skype has been an integral part of shaping modern communications" and voiced appreciation for being part of its evolution.