After 20 years of reshaping global communication, Skype is now officially retired.
Microsoft has ended support for the once-groundbreaking VoIP platform, transitioning its users to Microsoft Teams as part of a broader shift in communication technology.
On May 5, 2025, Skype was formally discontinued, marking the end of a tool that once defined how millions connected across borders. From its humble beginnings in 2003 to becoming a household name, Skype provided free or affordable voice and video calls long before such services became mainstream.
Founded by Niklas Zennström and Janus Friis, and developed by a team of Estonian programmers, Skype transformed global communication. Its impact was especially felt among those seeking cheaper international calls.
Microsoft, which acquired Skype in 2011 for $8.5 billion, explained the decision as part of a strategy to streamline its communications platforms. The tech giant is now placing its bets on Microsoft Teams, a modern collaboration app designed for both work and personal use.
Over the years, Skype lost ground to newer competitors like Zoom, WhatsApp, and Discord. In response, Microsoft began prioritizing Teams, gradually scaling down Skype’s development and features. The platform’s decline had been visible for years, both in user engagement and in functionality.
Microsoft has created a migration path for existing users. Here’s how the transition works:
However, some of Skype’s signature features, like pay-as-you-go international calling and SMS using Skype Credit, won’t be available in Teams’ free version. Additionally, free group video calls will now be limited to 60 minutes.
At its peak, Skype boasted hundreds of millions of monthly users. It became a cultural staple, so popular that “Skyping” became a verb. But the service faced turbulence even during its time under eBay, which bought Skype in 2005 for $2.5 billion but failed to integrate it meaningfully.
Microsoft’s stewardship brought deeper software integration, but a 2017 redesign—adding Snapchat-like features—sparked backlash. Users complained about clutter, slower performance, and a departure from the app’s core purpose: simple voice and video calls.
By 2023, daily active users had dropped to 36 million—a significant fall from earlier highs. The writing was on the wall.
Microsoft Teams, launched in 2017, has emerged as a leading player in the collaboration software market. Initially aimed at businesses, the platform now caters to general users as well. Its integration with Microsoft 365, emphasis on real-time collaboration, and cross-platform availability make it a natural successor, at least in Microsoft’s vision.
The company is encouraging users to embrace Teams not as a replacement, but as a more versatile tool for the future of digital communication.
Skype’s shutdown isn’t just about retiring an old app. It’s a farewell to a tech era that helped millions connect in a simpler internet age. While the platform is gone, its legacy remains etched in the way we communicate today.