Following the announcement in late February, Microsoft is finally closing the chapter on Skype. Existing users have been asked to switch to Microsoft Teams, and a data migration window will remain open until January 2026. Microsoft says this decision aligns with its strategy to streamline its communication services and focus primarily on Microsoft Teams.
Genesis
The first public beta for Skype went live in August 2003 and enabled users to call from one PC to another, which was revolutionary at the time. The service further evolved in the following years, with the launch of SkypeOut for traditional landline calls and the introduction of video chatting. This helped grow the platform to 40 million registered users by late 2005. After it was acquired by eBay, which strategically envisaged integrating Skype and its online marketplace, Skype boasted over 405 million registered users by 2008.
Ultimately, these plans didn't unfold as anticipated, and eBay divested Skype to a group of investors for $1.9 billion in 2009, citing miscalculated consumer demand for the service. During this phase, Skype began breaking into the mobile ecosystem, launching its first client for iOS and Android in 2009. It eventually reached a milestone of 27 million simultaneous online users across mobile and desktop. By 2010, Skype was teeming with 660 million registered users globally.
Microsoft Acquisition and Downfall
In 2011, Microsoft acquired Skype for $8.5 billion and integrated it into its core Windows, Xbox, and Outlook services. This propelled Skype to acquire 40% of the international call market share by 2014, yet this peak was fleeting. The following years brought in a surge of competition by the likes of WhatsApp, Telegram, Discord, Zoom, Google Meet, and Microsoft Teams. After the pandemic-driven boom subsided, Skype's daily active user count hovered around 36 million, while Teams was able to grab almost 300 million, and that difference is quite telling. It only got worse as Microsoft poured most of its resources into Teams, overshadowing the once-eminent Skype, which had already been losing ground in the market, leading to its eventual retirement today, on May 5th, 2025.
How does this impact existing users?
Microsoft explains this change is part of an effort to streamline its services, focusing on Teams as its primary communication platform. They highlight that Team offers similar core functionalities to Skype, such as one-on-one calls, group calls, messaging, and file sharing, with additions such as hosting meetings, managing calendars, and community features.
So, if you've been part of the Skype ecosystem, Microsoft recommends transitioning to Teams, where your data will be automatically ported within minutes. If you choose not to migrate, you can also export your data. Microsoft is set to delete all Skype user data by January 2026, so it's best to act now. If you wish to transfer your Skype credentials, contacts, and chats to Microsoft Teams, visit the official Skype website and proceed with the 'Start using Teams' option.
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