 "Skype to permanently sign off after 21 years as Microsoft retires it, consolidates around Teams")
Skype, the video-calling app that helped pioneer internet-based voice and video communications, is officially being shut down by Microsoft on Monday (May 5). The move marks the end of a two-decade run for the platform, which first launched in 2003 and quickly became synonymous with VoIP-based video telephony before losing ground to more agile rivals.
The shutdown isn’t a surprise. Microsoft announced its intention to sunset Skype back in February, positioning Teams—its increasingly consumer-facing collaboration suite—as the spiritual successor. Existing Skype users can now log into the free version of Teams using their Skype credentials across supported devices.
From early disruptor to legacy software
Skype’s journey has been anything but linear. After gaining popularity in the early 2000s for enabling free international calls and video chats, Skype was acquired by Microsoft in 2011 for $8.5 billion. At the time, it was one of the most widely used communications tools on the internet.
But fast forward a decade, and the app began to feel like a relic. The rise of mobile-first messaging platforms like WhatsApp, FaceTime, and particularly Zoom—especially during the Covid-19 pandemic—highlighted Skype’s sluggish evolution. Despite having a first-mover advantage, Skype struggled to adapt to changing user expectations around reliability, UX, and integration with other productivity tools.
Microsoft’s own Teams app, meanwhile, gained traction. According to the company, Teams usage has grown nearly 4x over the last two years, while Skype’s user base had dwindled to around 36 million by 2023.
What happens now?
Starting today, Skype will no longer be available for download, and new sign-ups are disabled. Skype Credits and subscriptions are being phased out, though existing paid users can access remaining balances and functionality until their next renewal date. The Skype Dial Pad, used for calling landlines and mobile phones, will still be accessible for paying users via the web portal and within Teams.
Importantly, the sunset only applies to Skype’s consumer offerings. Skype for Business, which was already rolled into Teams years ago, remains unaffected for users still on legacy enterprise setups.
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