Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has officially announced the discontinuation of Skype, set to occur in May, with the service being replaced by a free version of Microsoft Teams. This move comes amidst a competitive landscape dominated by VoIP services like WhatsApp, Zoom, FaceTime, and Messenger, which have largely overshadowed traditional cellphone calls facilitated by platforms like Skype.

As detailed by The Verge, existing Skype users will seamlessly transition to Microsoft Teams, where they can access all their Skype content—including message history and contacts—without needing to set up a new account. However, Microsoft plans to gradually eliminate support for domestic and international calls through Skype.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, enabling users to retain their chat records. Users have a 60-day window, ending on May 5, to make their decision. Microsoft assures that existing Skype credits will be honored, but new customers will not have access to paid Skype features for making or receiving calls.

The shutdown of Skype primarily impacts its ability to connect calls to cellphones, a feature that was once central to its popularity. According to Amit Fulay, Microsoft's vice president of product, this functionality has become less relevant as VoIP services have become ubiquitous and mobile data plans more affordable. "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 to The Verge. "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 real-time video and voice communication offerings and tap into Skype's 160 million active users. Skype was once a key feature across Windows devices and was highlighted as a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's user base has remained stagnant in recent years, shifting their focus to Microsoft Teams for consumer use.