Microsoft to Replace Skype with a Free Version of Teams

Microsoft has decided to discontinue Skype, its long-standing app for calling and messaging, which it bought 14 years ago. This marks the closure of an era for one of the oldest internet communication tools. Skype will be taken offline on May 5, and in its place, Microsoft will offer a free version of Microsoft Teams. For several years, Teams has been viewed as the successor to Skype, providing similar features like video calls and group meetings.

Jeff Teper, who is the president of collaborative apps and platforms at Microsoft, expressed gratitude for Skype’s role in shaping modern communication. He noted that Skype has been part of many important moments in people’s lives. Importantly, Microsoft has confirmed that there will be no layoffs for employees who worked on Skype.

Users of Skype will have the chance to transfer their account details to a new Teams account. This includes saving old chats and contacts, making the transition smoother for those who have relied on Skype for communication.

Skype was created by a group of entrepreneurs from the Nordic countries and was first launched in 2003. Two years later, eBay purchased the company for $2.6 billion, and later in 2011, Microsoft acquired it for $8.5 billion, which was their biggest purchase at the time. Skype reached its highest number of users around 2016, with approximately 300 million people using the app. However, its popularity began to decline as competing messaging apps like WhatsApp and work-oriented platforms like Slack emerged. By 2023, the number of Skype users had dropped to just 36 million.

Microsoft introduced Teams in 2016, and it has since grown to become one of the leading platforms for workplace communication, boasting over 320 million users. Since the launch of Teams, Microsoft has prioritized it as its main messaging platform. The company stated it would gradually phase out Skype for Business starting in 2017, which officially happened four years later.

For users who have paid for Skype credits, these will be accessible until the next billing cycle. Even after Skype shuts down in May, users who have paid will still be able to use the Skype Dial Pad within Teams. This means that Microsoft is providing ongoing support for those who have invested in Skype services.

With this significant change, Microsoft is placing a strong emphasis on Teams as the future of its communication strategy. While saying goodbye to Skype, Microsoft hopes users will find comfort in the features provided by Teams, ensuring that their communication needs continue to be met through an alternative platform. Overall, this shift highlights how the landscape of digital communication has evolved over time, with new platforms emerging to improve user experiences.