Microsoft to End Skype, Launch Free Teams Version in May

Microsoft has announced that it will discontinue Skype in May, replacing it with a free version of Microsoft Teams. This move comes as platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken over the VoIP communication landscape, pushing traditional cellphone calls facilitated by Skype into obsolescence.

According to The Verge, existing Skype users will seamlessly transition to Microsoft Teams, where they can access their message history and contacts without needing to set up a new account. Microsoft plans to gradually eliminate support for domestic and international calls through Skype.

For those not wishing to switch to Teams, Microsoft offers a tool to export Skype data, including photos and conversation history. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft assures that existing Skype credits will be honored, though new customers will no longer have access to paid Skype features for making or receiving calls.

The significant loss with Skype's shutdown is the ability to make calls to cellphones. Amit Fulay, Microsoft's vice president of product, explained to The Verge that while this feature was valuable during Skype's peak, it has become less relevant. "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 focus on real-time video and voice communications and tap into Skype's 160 million active users. Skype was once a key feature across Windows devices and even highlighted as a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's user base has not grown in recent years, leading the company to shift its focus to Microsoft Teams for consumer use.