Microsoft to End Skype, Launch Free Teams in May

Microsoft has officially announced that it will discontinue Skype in May, replacing it with a free version of Microsoft Teams. This decision comes as platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken over the landscape of voice over IP (VoIP) communication, pushing traditional direct calls to cellphones, once a staple of Skype, into obsolescence.

According to a report by The Verge, existing Skype users will be able to seamlessly transition to Microsoft Teams by logging in with their current credentials, ensuring all their data, including message history and contacts, remains intact. As part of this shift, Microsoft will gradually phase out the ability to make domestic or international calls through Skype.

For those not interested in moving to Teams, Microsoft has provided a tool to export Skype data such as photos and conversation history. Users have a 60-day window, starting from the announcement, to make their decision, as Skype will go offline on May 5. Microsoft has also assured that existing Skype credits will be honored, although new customers will no longer have access to Skype's paid features for making or receiving international and domestic calls.

The primary feature that will be lost with Skype's shutdown is the ability to make direct calls to cellphones. Microsoft's vice president of product, Amit Fulay, explained to The Verge that while this functionality was once highly valued, 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 noted. "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, emphasizing at the time how the acquisition would enhance its focus on real-time video and voice communications and tap into Skype's 160-plus million active users. While Skype was once integral to Windows devices and promoted as a feature for Xbox consoles, Microsoft has acknowledged that its user base has remained stagnant in recent years. The company is now shifting its focus to Microsoft Teams for consumer use.