REDMOND, Wash. — Microsoft is officially retiring Skype, the video-calling service it purchased for $8.5 billion in 2011, announcing the shutdown will take effect on May 5. The tech giant plans to move many of Skype's services to its flagship video-conferencing platform, Microsoft Teams, signaling a major shift aimed at consolidations within its communication tools.
Skype has been instrumental since it launched, having pioneered online calling and video conferencing and fostering connections worldwide since its inception by engineers in Estonia back in 2003. At its height, it boasted around 170 million users, leading then-Microsoft CEO Steve Ballmer to say, “The Skype brand has become a verb, nearly synonymous with video and voice communications.”
Today, Remote work and other factors have shifted the dynamics of online communication, significantly diminishing Skype's user base. While Teams currently supports approximately 320 million monthly active users, Skype’s numbers have plummeted — falling to roughly 23 million by 2020, with only slight growth during the pandemic lockdowns. This marked decline is largely due to increased competition from platforms like Zoom, WhatsApp, and Google Meet.
Microsoft emphasized its intent to streamline services, stating this transition will facilitate quicker innovation and improved communication tools. Jeff Teper, President of Microsoft 365 Collaborative Apps and Platforms, explained, “At this point, putting all our focus behind Teams will let us give a simpler message and drive faster innovation.” Skype will remain functional for existing users until the final shutdown date, during which they will be able to migrate to Teams using their existing Skype account details.
This transition is underpinned by Skype's historical significance as the initial trailblazer of internet-based communication. Originally purchased by eBay and later sold to Microsoft, Skype became the international standard for video calls. Users reminisced online about their connections and experiences through the service as the impending closure approached. One said, “My best friend and I share many good memories on Skype. This is a sad day and almost a feeling of losing yet another fragment of my adolescence.”
After extensive competition, industry analysts, including James Hennessy, ideas editor at Capital Brief, remarked on Skype’s gradual decline as “a slow-motion car crash,” observing how Microsoft struggled to incorporate Skype effectively within its suite of products. Hennessy highlighted how the pandemic period presented a significant opportunity for Skype, which it failed to capitalize on, instead yielding ground to rivals like Zoom.
The anticipated shutdown of Skype is projected to separate generations of users from this once-ubiquitous platform. Teachers, families, and friends have utilized it for years, particularly during significant life moments such as birthdays, graduations, and family reunions. A user reflected on the service's intrinsic nostalgia, stating, “While I knew the day would come, it's still sad. A lot of good memories there in an era when it was needed the most.”
Despite the sadness surrounding its discontinuation, Microsoft reassured users of the core features accessible via Teams, ensuring they will not lose the capability to conduct one-on-one calls and group messaging. “With Teams, users have access to many of the same core features they use in Skype, such as one-on-one calls and group calls, messaging, and file sharing,” Teper noted. “Additional innovations like hosting meetings, managing calendars, and building communities will be available, enhancing the overall communication experience.”
The end of Skype, inaugurated as an innovative leader, sheds light on how swiftly technology evolves, often leaving behind iconic services as users migrate toward more modern solutions. Indeed, numerous users have acknowledged the unique space Skype had occupied for nearly two decades, serving as the bridge across distances before the emergence of numerous video-based alternatives now dominating the market.
For loyal Skype users, the situation is bittersweet. The promise of Teams guarantees clarity and shared functionalities moving forward, but the memories created through Skype resonate deeply. Hence, some individuals still grapple with what feels like the loss of not just technology but also treasured connections and shared experiences. The Skype brand’s legacy may soon be just memory, but the impact it made on millions long residing on their screens will not vanish easily.