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Microsoft's Skype service will cease operations in May. The company announced that users will be able to access Microsoft Teams with their existing Skype accounts. This change marks the end of an era for the once-dominant video-calling platform.
Microsoft bought Skype in 2011 for $8.5 billion. At the time, Skype had 170 million users worldwide. Users could use Skype to call and video chat through the Internet instead of conventional telecommunication lines. Users favored Skype because it allowed them to make free international phone calls which became its key marketing point for business and personal use.
Engineers from Estonia developed Skype and launched it in 2003. It used VOIP (Voice Over Internet Protocol) technology to transmit calls online. Ebay gained control of Skype through its acquisition for $2.6 billion in 2005 although this purchase eventually ended unsuccessful. EBay sold its 65% stake to investor group members for $1.9 billion in 2009 and Microsoft acquired the company two years after the sale.
For years, Skype dominated the online communication space. It was widely used by businesses, students and families. Remote communication became more visible in 2017 when the Trump administration implemented Skype as a platform to gather questions from reporters located outside Washington DC.
However, competition increased. The platforms of Zoom, Google Meet and Microsoft Teams began their rise in popularity most notably during the COVID-19 pandemic. FaceTime from Apple and WhatsApp from Meta provided users with additional options for video calling. After a brief increase in usage, Skype failed to sustain its momentum.
Microsoft introduced Teams in 2017 with the goal of challenging Slack and the other workplace communication methods on the market. Microsoft dedicated its resources to Teams development so it would replace Skype in the market by extending its features and system improvements. The market transition brought about Skype's diminished impact in communications software.
Microsoft confirmed Skype’s shutdown on X, formerly Twitter. Jeff Teper, president of Microsoft 365, stated that Skype played a key role in shaping modern communication. He emphasized that Teams will offer new ways to stay connected.
Skype will no longer be available from May. Microsoft is encouraging users to transition to Teams, which offers similar video-calling and messaging features. The decision reflects Microsoft’s focus on consolidating its communication platforms.
