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

Microsoft has announced the impending shutdown of Skype, slated for May, with plans to replace it with a free version of Microsoft Teams. This move comes at a time when VoIP communication platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken the lead, relegating traditional cellphone calls facilitated by Skype to the annals of history.

As per a report by The Verge, existing Skype users will seamlessly transition to Microsoft Teams, where they can log in and access their entire Skype history, including messages and contacts, without the need to set up a new account. However, Microsoft will gradually phase out the support for domestic and international calls.

For those not keen on switching to Teams, Skype offers the option to export their data, including photos and conversation history. Microsoft has developed a specific tool to assist users in viewing their Skype chat history without migrating to Teams.

Skype users have until May 5 to make their decision, as this is when Skype will go offline. Microsoft has assured that existing Skype credits will be honored, but new customers will no longer be able to access paid Skype features that allow for making or receiving international and domestic calls.

The most significant loss with Skype's shutdown is the capability to make calls to cellphones. In a statement to The Verge, Microsoft's vice president of product, Amit Fulay, noted that while telephony functionality was beneficial during Skype's peak, it is less relevant now. "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 explained. "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 focus on real-time video and voice communications and tap into Skype's then-160 million active users. Skype once played a pivotal role across Windows devices and was even highlighted as a key feature for Xbox consoles. However, Microsoft has acknowledged that Skype's user base has remained stagnant in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.