Microsoft has officially announced that it will retire its long-standing internet calling service, Skype, on May 5, 2025. The decision marks the end of a two-decade era for one of the most recognisable names in digital communication, as the company redirects its focus toward Microsoft Teams, its modern collaboration platform.
Skype’s Legacy Comes to an End
Launched in 2003 by a group of engineers in Tallinn, Estonia, Skype revolutionised communication by allowing users to make voice and video calls over the internet, bypassing traditional landlines. The platform quickly became a household name, boasting hundreds of millions of users at its peak. Microsoft acquired Skype in 2011 for $8.5 billion, outbidding competitors Google and Facebook.
For years, Skype dominated the VoIP (Voice over Internet Protocol) space. However, as competition intensified, the platform struggled to keep up with newer, more user-friendly rivals such as Zoom, Slack, and WhatsApp. The shift toward mobile-first applications also posed challenges, as Skype’s underlying technology was not optimised for the smartphone era.
Why Microsoft is Phasing Out Skype
Microsoft’s decision to shut down Skype aligns with its broader strategy of consolidating its communication platforms. The company has spent years prioritising Teams, which launched in 2017 as a direct competitor to Slack and quickly became a workplace essential.
The pandemic-driven surge in remote work further cemented Teams’ role in professional and personal communication. Microsoft reported that in the past two years, the number of meeting minutes on Teams has quadrupled, highlighting a significant shift in user preferences. With 320 million monthly active users, Teams has far outpaced Skype’s dwindling numbers.
By retiring Skype, Microsoft aims to streamline its offerings and focus on Teams as the primary communication hub. Jeff Teper, President of Collaborative Apps and Platforms at Microsoft, stated that the move will allow the company to “more easily adapt to customer needs” and deliver a more robust, feature-rich experience.
Transition Plan for Skype Users
To facilitate a smooth transition, Microsoft has outlined a migration plan for existing Skype users:
Seamless Migration to Teams:
- Skype users can log into Teams (free) using their existing Skype credentials. Their chats and contacts will be automatically transferred.
Interoperability Phase:
- During the transition, Skype and Teams users will still be able to communicate with each other, ensuring minimal disruption.
Data Export Options:
- Users who do not wish to switch to Teams can download their chat history, contacts, and call logs before the shutdown date.
Changes to Skype’s Paid Services
Microsoft has also announced that Skype Credit and subscription-based calling features will be phased out.
No New Subscriptions:
- New customers will no longer be able to purchase Skype Credit or calling plans.
Existing Subscriptions:
- Users with active subscriptions can continue using them until their next renewal period.
Post-May 5, 2025:
- After Skype shuts down, paid users will still have access to the Skype Dial Pad via the Skype web portal and within Teams.
A Shift in the Digital Communication Industry
The retirement of Skype signals a broader trend in the tech industry—the move away from standalone VoIP services toward integrated communication hubs. While Skype paved the way for modern online communication, Microsoft’s decision shows the growing prevalence of collaborative platforms that combine messaging, video calls, and productivity tools.
For casual users, Teams offers many of the same features as Skype, with additional functionalities like meeting scheduling, calendar integration, and community-building tools. For businesses, the move reinforces Microsoft’s vision of a Teams-centric communication ecosystem, seamlessly integrating with other Microsoft 365 applications.
A Fond Farewell to an Internet Icon
As Microsoft prepares to shut down Skype, the company has acknowledged its impact on global communication. “Skype has been an integral part of shaping modern communications,” Microsoft said in its announcement. “We are honored to have been part of the journey.”
While Skype’s chapter is closing, Microsoft encourages users to transition to Teams well ahead of the deadline to avoid disruptions. After May 5, 2025, a service that once defined digital communication will officially sign off for the last time.