Microsoft has announced the retirement of its long-standing video-conferencing platform, Skype, effective today, May 5. Launched in 2003 and acquired by Microsoft in 2011, Skype provided users with Voice over Internet Protocol (VoIP) services, enabling video calls, voice communications, and video conferences. This decision to phase out the application was communicated in February, with the company shifting its focus toward the Teams app as its primary free communication service for consumers. Existing Skype users will be transitioned to Microsoft Teams, allowing them to sign in using their current Skype credentials across all compatible devices.
What Lies Ahead
Microsoft has stated that features such as Skype Credit and subscriptions will no longer be available to users. Current subscribers can utilize their Skype Credits and subscriptions until their next renewal cycle, while Skype Credits will remain usable until they are depleted. Starting today, the Skype Dial Pad will only be accessible to remaining paid users through the Skype web portal and within Microsoft Teams.
The company has clarified that the shutdown of Skype affects only free and paid users, and does not extend to those with Skype for Business accounts.
Transitioning from Skype to Microsoft Teams can be done easily with the following steps:
- Download the Teams app from the official Microsoft Teams website.
- Log in using your Skype credentials.
- Begin using Teams, complete with instant access to all your Skype chats and contacts.
As Skype phases out, users can seamlessly log into the free version of Microsoft Teams with their existing credentials. The transition process has been streamlined to automatically carry over Skype data, including chats and contacts, to the new platform. Users will receive prompts within the Skype app to facilitate data migration, which must be completed by January 2026; any remaining data after this period will be permanently deleted.
It is important to note that chats involving Skype users and Teams work or school accounts will not be transferred. Additionally, premium Skype features, such as Skype Credit and subscriptions, will cease to be offered to users.
Reasons Behind the Shutdown of Skype
Skype has been a prominent player in the VoIP and video-conferencing landscape since its inception in 2003. The platform gained immense popularity, leading to its acquisition by Microsoft in 2011 for $8.5 billion (approximately Rs. 0.71 lakh crore). However, as time passed, competitors like WhatsApp and Zoom emerged, offering enhanced features and user experiences. Particularly during the Covid-19 pandemic in 2020, Zoom saw a significant uptick in usage, while Skype’s relevance diminished.
Despite Microsoft revealing that Skype still had 36 million active users in 2023, its overall market share had diminished over the years, with the Teams app experiencing a fourfold growth in the last two years and providing similar core functionalities alongside additional capabilities.
Consequently, Microsoft made the announcement in February regarding Skype’s retirement on May 5 (today).
