Microsoft, in a blog post, announced that it will stop Skype internet calling service on May 5, 2025, as it has struggled to compete with platforms such as Zoom and Slack.
The decision is part of Microsoft’s strategy to focus on its Teams platform, which has gained significant traction in corporate and personal communication.
Skype, founded in 2003, revolutionized long-distance communication by enabling free audio and video calls over the internet. Microsoft acquired Skype in 2011 for $8.5 billion.
Skype lost customers due to lack of innovation in the technology platform. The decline of Skype can be attributed in part to its outdated underlying technology, which was not optimized for the smartphone era.
Microsoft has made significant investment in Teams, integrating it with its Office suite to cater to businesses and organizations.
Microsoft has assured that there will be no job cuts due to the move, but it has not disclosed current Skype user numbers. Teams, however, continues to grow, with Microsoft reporting 320 million monthly active users.
Microsoft earlier said Teams has become essential platform to hundreds of millions of people to meet, call, chat, collaborate, and do business. Teams premium has surpassed 3 million seats in Q4, up nearly 400 percent, at the end of its fourth-quarter. Some of the paid customers of Microsoft Teams include organizations like Dentsu, Eli Lilly, and Ford.
What is next for Skype users?
Microsoft has revealed that Skype users will be able to log into Teams for free using their existing credentials. Their chats and contacts will migrate automatically, allowing them to continue conversations without disruption. During the transition period, Skype and Teams users will still be able to communicate with each other across platforms.
For those who do not wish to move to Teams, Microsoft is providing an option to export Skype data, including chats, contacts, and call history. Skype will remain available until May 5, 2025, allowing users ample time to explore Teams or alternative communication platforms.
With the retirement of Skype, Microsoft is also discontinuing paid Skype services, including Skype Credit and subscriptions for domestic and international calls. Existing paid users will be able to continue using their Skype Credits and subscriptions until their renewal periods end. After May 5, 2025, the Skype Dial Pad will be accessible through the Skype web portal and within Teams.
This move aligns Skype with other Microsoft projects that have been phased out over time, such as Internet Explorer and Windows Phone, Reuters news report said.
On January 15, Microsoft said it will end support for Skype for Business Server 2015 and Skype for Business Server 2019. several other products (some of which are often used with Skype for Business) also reach end of support or retirement on October 14, 2025, including Exchange Server 2016, Exchange Server 2019, Microsoft Office 2016, Microsoft Office 2019, Outlook 2016, Outlook 2019, Windows 10, and more.
Baburajan Kizhakedath
