Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has officially announced that it will be shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as no surprise, given the dominance of platforms like WhatsApp, Zoom, FaceTime, and Messenger in the realm of voice over IP (VoIP) communication, pushing traditional cellphone calls via Skype into the annals of history.

According to The Verge, existing Skype users will have a seamless transition to Microsoft Teams. They can log into the Teams app and access all their Skype content, including message history and contacts, without needing to create a new account. However, Microsoft will be phasing out support for domestic and international calls.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to retain their chat history. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft assures that existing Skype credits will be honored, but new customers will no longer have access to paid Skype features that enable international and domestic calls.

The most significant loss with Skype's shutdown is the ability to make calls to cellphones. Microsoft's Amit Fulay, vice president of product, explained to The Verge that while telephony functionality was valuable during Skype's peak, it has become less relevant. "Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive," Fulay said. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its focus on real-time video and voice communications and tap into Skype's 160-plus million active users. Skype once played a crucial role across Windows devices and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has stagnated in recent years, shifting their focus to Microsoft Teams for consumer use.