Microsoft Retires Skype, Directs Users to Microsoft Teams
The Rise and Fall of Skype
SAN FRANCISCO: Microsoft announced it was retiring Skype, the online voice and video call pioneer that the tech titan acquired in 2011. Starting in May 2025, Skype will no longer be available. Users are directed to sign into Microsoft’s Teams platform for further use of its services.
Skype’s Early Years
Skype was founded in 2003 by Scandinavians Niklas Zennström and Janus Friis in Estonia. It revolutionized internet communication by offering free voice calls between computers and affordable rates for calls to landlines and mobile phones. By 2005, Skype had already reached 50 million registered users, demonstrating its rapid global adoption.
The Acquisition and Subsequent Years
Online auction site eBay acquired Skype in 2005 for approximately $2.6 billion. However, the expected synergies never panned out, and in 2009, eBay sold a majority stake to a group of investors, who then sold it to Microsoft. In recent years, Skype failed to hold onto its place against new rivals such as Meta-owned WhatsApp and Zoom, as well as Microsoft’s own Teams.
The Reason Behind the Retirement
"We’ve learned a lot from Skype…as we’ve evolved Teams over the last seven to eight years," said Jeff Teper, president of Microsoft 365 collaborative apps and platforms. "But we felt like now is the time because we can be simpler for the market, for our customer base, and we can deliver more innovation faster just by being focused on Teams."
The Name and Its Origins
The name "Skype" derived from "Sky peer-to-peer," the technology that was fundamental to Skype’s original architecture. The peer-to-peer aspect was crucial as it distributed the network demands across users’ computers rather than relying solely on centralized servers, which was a key innovation that allowed Skype to scale rapidly during its early years.
Conclusion
Microsoft’s decision to retire Skype and direct users to Microsoft Teams is a strategic move to focus on its own platform and deliver more innovation. While Skype was a pioneer in the online voice and video call space, it failed to adapt to the changing market and competition. Microsoft’s Teams will likely benefit from the retirement of Skype, and users will have to adapt to the new platform.
Frequently Asked Questions
Q: Why is Microsoft retiring Skype?
A: Microsoft is retiring Skype to focus on its own Teams platform and deliver more innovation.
Q: What will happen to existing Skype users?
A: Existing Skype users will be directed to sign into Microsoft’s Teams platform for further use of its services.
Q: What are the reasons behind the retirement?
A: Microsoft believes that having a single, focused platform (Teams) will allow for more innovation and a simpler experience for users.
Q: What will happen to Skype’s features and functionality?
A: Skype’s features and functionality will be integrated into Microsoft Teams, providing a more comprehensive communication platform.