Microsoft Ends Skype Era, Shifts to Free Teams in May

Microsoft has officially announced the discontinuation of Skype, effective May 5, and its replacement with a free version of Microsoft Teams. This decision comes amidst the dominance of VoIP communication platforms such as WhatsApp, Zoom, FaceTime, and Messenger, marking the end of Skype's era for direct cellphone calls.

According to The Verge, existing Skype users will have a seamless transition to Microsoft Teams. They can log into the Teams app with their current Skype credentials, automatically transferring their message history, contacts, and other data without needing a new account. However, Microsoft will phase out the support for domestic and international calls.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, including photos and conversation history. Users have a 60-day window to make their decision before Skype goes offline. Microsoft will continue to honor existing Skype credits, but will no longer provide new customers with access to paid Skype features for making or receiving international and domestic calls.

The primary feature lost 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 this functionality was significant during Skype's peak, it has become less relevant today. "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 stated. "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 real-time video and voice communication capabilities and tap into Skype's 160 million active users. Skype once played a crucial role across all Windows devices and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that the Skype user base has remained stagnant in recent years, shifting their focus to Microsoft Teams for consumer use.