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Technology
03 March 2025

Microsoft Announces Skype Shutdown, Moves Users To Teams

Transitioning to Microsoft Teams enhances features for users as Skype services are phased out

Microsoft has announced the upcoming retirement of Skype services on May 5, 2025, redirecting users to Microsoft Teams, its advanced collaboration platform. This transition marks the end of Skype's long tenure, which began when Microsoft acquired it for $8.5 billion back in 2011. The tech giant has emphasized the enhanced features available within Teams compared to Skype, aiming to facilitate smoother user migration.

Jeff Teper, President for the Collaborative Apps and Platforms division at Microsoft, detailed the benefits of Microsoft Teams, stating, "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. These are complemented by enhanced functionalities like hosting meetings, managing calendars, and building communities for free." These upgrades reflect the changing demands of remote and hybrid work environments.

Paid Skype services, such as Skype Credit and subscription services, will be discontinued, allowing users to use their remaining credit until the end of their next billing cycles. Microsoft has confirmed this shift, asserting current subscribers can enjoy their existing balances until the service officially halts.

For users yet to transition to Teams, Microsoft has set up solutions to ease the migration process. "Users can log in to Teams with their Skype credentials, and their conversations and contacts will automatically transfer," the company stated. Until May 5, Skype and Teams users will maintain the ability to communicate with each other, preserving connections during the transition.

Skype for Business Online was previously discontinued due to redundancy with Teams, marking another shift indicating Microsoft's focus on Teams as its flagship communication tool. The company also aims to phase out on-premises versions of Skype for Business, with support for Skype for Business Server 2016 and 2019 ending this October.

While Skype's history is notable, it's evident the service has struggled to compete against rivals like Zoom and Slack, especially during the pandemic, when users turned to different platforms for their communication needs. The increasing popularity of Teams has led Microsoft to position it at the forefront, integrating it conveniently within Windows systems and streamlining user access.

With these changes, Microsoft urges users to make the transition not only to keep their contacts accessible but to leverage the more comprehensive suite of collaborative tools Teams offers. Amidst this shift, the firm also advises those who choose not to migrate they can export their chat, contact data, and call history before the deadline.

Intermedia has also announced plans for enhancing Microsoft Teams capabilities, launching Intelligent Archiving for businesses. This new feature allows organizations to capture, retain, and manage data across various communication channels, reinforcing Teams as the central hub for enterprise communication needs.

Irina Shamkova, Chief Product Officer at Intermedia, remarked, "With Intermedia Archiving, businesses aren’t just protecting their data – they’re building an invaluable resource for AI-driven business intelligence." This integration demonstrates how companies are enhancing their Teams experience, focusing on compliance and data management as regulatory scrutiny increases.

Intermedia's expanded solution aims to provide businesses with the ability to retain and manage communications securely, indicating the industry's shift toward comprehensive, compliant communication solutions. Their approach also aligns with the growing need for organizations to consolidate their communication management efforts seamlessly.

By positioning itself as the first platform to integrate archiving capabilities directly within Microsoft Teams, Intermedia emphasizes the need to simplify compliance, offering features such as advanced search and enterprise-grade security measures to protect sensitive data.

Overall, the phased retirement of Skype signifies not just the end of one service but the dawn of Microsoft's strategy to turn Teams as the linchpin of modern workplace communication as it continues to adapt to user needs. Looking forward, the focus on seamless integrations and enhanced functionalities within Teams positions it as the dominant player within the collaboration space.