Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has officially announced that it will be shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as competitors like WhatsApp, Zoom, FaceTime, and Messenger have taken over the market for voice over IP (VoIP) communication, pushing traditional direct calls to cellphones, once a hallmark of Skype, into obsolescence.

According to The Verge, existing Skype users will be able to transition smoothly to Microsoft Teams. Upon logging into Teams, users will find all their Skype data, including message history and contacts, seamlessly integrated without the need to create a new account. However, Microsoft plans to discontinue support for domestic and international calls.

For those who choose not to migrate to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to keep their records. The deadline for making this decision is approaching, as Skype is set to go offline on May 5. Microsoft has assured that existing Skype credits will be honored, though new customers will no longer have access to paid Skype features for making or receiving international and domestic calls.

The most significant change with Skype's shutdown is the loss of the ability to make calls to cellphones. Amit Fulay, Microsoft's vice president of product, told The Verge that while telephony functionality was once vital during Skype's peak, its relevance has diminished. He explained, “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. 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 tap into Skype’s over 160 million active users. Skype was once a key feature across Windows devices and even promoted as a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's user base has not grown in recent years, leading to the shift towards Microsoft Teams for consumer use.