Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has officially announced its plans to discontinue Skype in May, opting instead to transition users to a free version of Microsoft Teams. This move comes at a time when VoIP services like WhatsApp, Zoom, FaceTime, and Messenger have taken the lead in digital communication, overshadowing traditional Skype-to-cellphone calls.

According to The Verge, existing Skype users can seamlessly transition to Microsoft Teams without the hassle of creating a new account. All your Skype data, including message history and contacts, will be available on Teams. However, Microsoft will gradually eliminate the 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. Users have a 60-day window until Skype goes offline on May 5 to make their decision. Importantly, Microsoft will honor existing Skype credits, though new customers will no longer have access to paid Skype features for making or receiving calls.

The key feature being lost with the Skype shutdown is the ability to make calls to cellphones. In a statement to The Verge, Microsoft’s Vice President of Product, Amit Fulay, explained that while telephony was a valuable function during Skype's peak, it is 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 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 to tap into Skype's then-160 million active users. Skype was once a vital component of Windows devices and even a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has stagnated in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.