The End of an Era: Skype to Shut Down After Two Decades
The Rise and Fall of Skype
Founded in 2003, Skype revolutionized the way people connect across borders with its cheap audio and video calls. The platform quickly disrupted the landline industry, boasting hundreds of millions of users at its peak. However, Skype’s underlying technology was not suited for the smartphone era, making it difficult to keep up with easier-to-use and more reliable rivals such as Zoom and Salesforce’s Slack in recent years.
Microsoft’s Shift to Teams
When the pandemic and work-from-home fueled the need for online business calls, Microsoft batted for Teams by aggressively integrating it with other Office apps to tap corporate users – once a major base for Skype. To ease the transition, Microsoft will allow Skype users to log into Teams for free on any supported device using their existing credentials, with chats and contacts migrating automatically.
A Series of High-Flying Bets
Skype will become the latest in a series of high-flying bets that Microsoft has mishandled, such as the Internet Explorer web browser and its Windows Phone. Other big tech firms have also struggled with online communication tools, with Google making several attempts through apps including Hangouts and Duo.
The Decline of Skype
When Microsoft bought Skype in 2011 for US$8.5 billion after outbidding Google and Facebook – its largest deal at the time – the service had around 150 million monthly users. By 2020, that number had fallen to roughly 23 million, despite a brief resurgence during the pandemic.
Microsoft’s Farewell Message
Microsoft said on Friday, "Skype has been an integral part of shaping modern communications." "We are honoured to have been part of the journey."
Frequently Asked Questions
- When will Skype be shut down? May 5
- What will happen to Skype users? Users will be able to log into Teams for free on any supported device using their existing credentials, with chats and contacts migrating automatically.
- How many users or employees will be impacted? The number is unclear, as Microsoft did not immediately respond to a request for the figure.
- What is the reason for shutting down Skype? Shutting down Skype will help Microsoft focus on its homegrown Teams service by simplifying its communication offerings.