Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has officially announced that it will discontinue Skype in May, replacing it with a free version of Microsoft Teams. This decision comes amidst the growing dominance of communication platforms like WhatsApp, Zoom, FaceTime, and Messenger, which have largely overshadowed Skype's traditional VoIP and direct cellphone calling features.

According to The Verge, existing Skype users can seamlessly transition to Microsoft Teams, where they will find all their previous content, including message history and contacts, readily available without the need to set up a new account. However, Microsoft plans to phase out the support for domestic and international calls that Skype currently offers.

For those who prefer not to switch to Microsoft Teams, Skype provides an option to export data such as photos and conversation history. Microsoft has developed a tool to assist users in viewing their Skype chat history if they choose not to migrate.

Skype users have a 60-day window to make their decision, as the service will go offline on May 5. Microsoft assures that existing Skype credits will be honored, but new customers will no longer have access to the paid Skype features that allow making or receiving international and domestic calls.

The primary loss with Skype's shutdown is the ability to make direct calls to cellphones. Microsoft's Amit Fulay, vice president of product, explained to The Verge that while the telephony feature was valuable during Skype's peak, it has become less relevant. "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 said. "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, with the goal of enhancing its focus on real-time video and voice communications and tapping into Skype’s then-160 million active users. Skype once played a crucial role across Windows devices and was promoted as a key feature for Xbox consoles. Nonetheless, Microsoft acknowledges that Skype's userbase has stagnated in recent years, leading to a shift in focus towards Microsoft Teams for consumer use.