Skype to Shut Down on May 5th, 2025

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Microsoft has announced its official retirement of Skype on May 5, 2025, marking the end of its 14-year tenure as the owner of the once-dominant internet calling and messaging service. (Source: Bloomberg)

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In 2011, Microsoft acquired Skype for a staggering $8.5 billion, which was then its largest acquisition. At its peak, Skype boasted over 300 million monthly active users and was synonymous with internet-based voice and video calling. However, its relevance gradually declined in recent years, with its user base shrinking to approximately 36 million by 2023 as competitors like Zoom, WhatsApp, and Microsoft’s own Teams platform gained traction.

In response to this shift, Teams has experienced remarkable growth, surpassing Skype’s remaining user base with 320 million monthly users. This decision is part of Microsoft’s broader strategy to prioritize artificial intelligence features within Teams. Instead of layoffs, employees currently working on Skype will be reassigned to other projects.

Skype played a pivotal role in popularizing VoIP (Voice over Internet Protocol) technology, enabling businesses and individuals to connect globally with minimal costs. It also served as an early testbed for AI-powered real-time language translation, showcased in a widely publicized demonstration in 2014. Nevertheless, frequent UI changes, reliability issues, ill-conceived social media-like features, a gradual shift toward enterprise, and its inability to keep pace with newer competitors, particularly during the COVID-19 pandemic, ultimately contributed to its obsolescence.

As Microsoft finalizes the shutdown process, existing Skype users will have until May 5 to migrate their data and contacts to Teams or explore alternative solutions.

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Dan Uff

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