Microsoft to Retire Skype in May, Shifting Focus to Teams

Microsoft has announced plans to shut down Skype, the pioneering video-calling platform it acquired for $8.5 billion in 2011. The company will officially retire the service in May, redirecting users to Microsoft Teams, its primary communication and collaboration platform. Existing Skype users will be able to access Teams using their current accounts.

The decision reflects Microsoft’s long-standing strategy to prioritize Teams over Skype as it streamlines its communication offerings in an increasingly competitive market. Platforms like Zoom, Slack, and Google Meet have gained significant traction, especially in the wake of the remote work boom triggered by the COVID-19 pandemic.

Founded in 2003 in Tallinn, Estonia, Skype revolutionized online communication by introducing voice-over-internet-protocol (VOIP) technology, enabling users to make calls over the internet instead of traditional phone lines. It later expanded to video calls, making high-quality virtual communication accessible to millions.

Barbara Larson, a management professor at Northeastern University, highlighted Skype’s impact on global connectivity. “You no longer had to be a senior executive to have a high-quality video call,” she said. “Skype brought people around the world closer together.”

At its peak in 2011, Skype boasted approximately 170 million users worldwide. Former Microsoft CEO Steve Ballmer praised the service as nearly synonymous with video and voice communication. However, the rise of workplace collaboration tools like Slack and the launch of Microsoft Teams in 2017 signaled a shift away from Skype’s dominance.

During the pandemic, as businesses and individuals turned to new digital communication tools, Skype’s relevance faded. Nevertheless, it played a foundational role in shaping modern virtual communication. “Skype paved the way for today’s digital collaboration tools,” Larson noted. “It set the stage for how we connect remotely.”

With Skype’s retirement, Microsoft is reinforcing its commitment to Teams as the future of digital communication, ensuring a more integrated experience for business and personal users alike.

source:AP Business