In a significant move today, Microsoft announced that it will be eliminating its telecommunications application, Skype, on May 5, 2025. Skype, which has been widely recognized for its diverse Internet Protocol (IP) services including video conferencing, instant messaging, file transfers, and calls to landline and mobile phones, will be replaced by Microsoft Teams.
The closure of Skype was somewhat expected since Microsoft decided to shift focus towards Microsoft Teams. Microsoft mentioned in 2017 that Teams would take the place of Skype for Business. In 2021, Teams’ personal edition was introduced. Many in the tech sector were not shocked by the decision to retire Skype in light of these developments.
“In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” stated Microsoft’s President of Collaborative Apps and Platforms, Jeff Teper. “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. Additionally, Teams offers enhanced features like hosting meetings, managing calendars, and building and joining communities for free.”
Skype, created by Ahti Heinla, Priit Kasesalu, Jaan Tallinn, and Toivo Annus, first emerged in August 2003 and was later acquired by eBay in September 2005. In September 2009, a group led by Silver Lake, Andreessen Horowitz, and the Canada Pension Plan Investment Board purchased a 65% stake in Skype from eBay for $1.9 billion. Subsequently, in May 2011, Microsoft acquired Skype for $8.5 billion as a successor to its Windows Live Messenger service.
Soon, Skype users will be able to migrate to Microsoft Teams’ free version, allowing them to continue calling and chatting with people appearing in Skype and continue their conversations. Users will also have the option to export their Skype data (chats, contacts, call history) if they do not want to migrate to Teams.
With the end of Skype coming soon, Microsoft has decided to discontinue offering paid Skype features to new customers, including Skype Credit and subscriptions for calls. Existing subscription users can use their credits and subscriptions until the end of their next renewal period. After May 5, 2025, the Skype Dial Pad will only be available to remaining paid users through the Skype web portal and within Teams.
[Source]: Microsoft: The next chapter: Moving from Skype to Microsoft Teams - [Archives 1; 2] – [Screenshots: 1; 2]. @Microsoft365 (YouTube): The Next Chapter: From Skype to Teams.
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