Microsoft will retire Skype in May 2025, ending a service that changed how people communicate online since its 2003 launch. The company is directing users toward Microsoft Teams, which it calls a “modern communications and collaboration hub.”
“The way we communicate has evolved significantly over the years,” said Jeff Teper, Microsoft’s president of collaborative apps and platforms, in a company blog post. “From instant messaging to video calls, technology has continuously transformed how we connect with each other.”
Why Skype Lost Its Edge
Skype’s decline stems from strong competition by Zoom, WhatsApp, and FaceTime. These platforms created more user-friendly experiences, especially on smartphones, where Skype struggled to adapt its desktop-focused design.
Feng Li, associate dean at Bayes Business School in London, explained: “Skype’s sluggish evolution, clunky interface and failure to keep pace with seamless, app-based experiences made it a relic long before Microsoft pulled the plug.”
The service that Microsoft bought for $8.5 billion in 2011 has fallen so far that it wasn’t even mentioned in the company‘s latest annual report to regulators.
User Numbers Show Clear Shift
During the pandemic, Skype had about 40 million daily active users, while Teams had nearly twice that number, according to CNBC.
Teams now has “hundreds of millions” of users, Microsoft reports. In just the past two years, the time consumers spend in Teams meetings has grown four times over, showing its rising popularity.
What Skype Users Need to Know
Microsoft has outlined two main options for users before the May 5, 2025 shutdown:
- Move to Microsoft Teams for free. Users can sign into Teams with their Skype account to keep all chats and contacts. During transition, Teams and Skype users can still communicate with each other.
- Export Skype data, including chats, contacts, and call history for those who prefer not to use Teams.
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Changes to Paid Skype Services
Microsoft will stop offering paid Skype features to new customers, including Skype Credit and international calling subscriptions.
Current subscribers can use their credits and subscriptions until their next renewal period. After May 2025, the Skype Dial Pad will remain available to existing paid users through the Skype web portal and within Teams.
Technology Behind the Change
Skype pioneered peer-to-peer networking, which shares workload across connected computers. While innovative when introduced, this approach proved less efficient than the cloud-based systems used by newer competitors.
Microsoft’s focus on Teams, with its tight integration with Office 365, reflects changing user needs. Teams offers features beyond video calls, including meeting management, calendar tools, and community building.
“Even the strongest brands can be swept aside, especially if they stop listening, stop evolving or assume their dominance will last,” said Li, highlighting what businesses can learn from Skype’s decline.
As Skype heads toward retirement, Teper acknowledged its impact: “Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey.”
