After 20 years, Microsoft announces the end of Skype – TK

After 20 years, Microsoft announces the end of Skype

Microsoft has officially confirmed the shutdown of Skype, one of the most popular voice and video communication platforms in the history of the internet. The announcement was made on Friday (28) through the official service profile on X, formerly Twitter. The company stated that Skype “will no longer be available” for use starting in May 2024.

Advertisment

However, users will not lose their accounts, as they will be able to use the same login credentials on the free version of Microsoft Teams, a service the company has been promoting in recent years as a replacement for Skype. This decision marks the end of a two-decade journey for software that revolutionized the way people communicate online, being widely used by regular users, professionals, and even large corporations.

Skype was created in 2003 by a team of developers in Estonia, led by entrepreneurs Niklas Zennström and Janus Friis. The software emerged as a disruptive innovation by allowing free voice calls over the internet using VoIP (Voice over Internet Protocol) technology, offering an affordable alternative to traditional phone calls, especially for international calls, which at the time were expensive and not easily accessible.

The platform quickly gained millions of users worldwide, becoming an indispensable tool for those needing to communicate over long distances. With a simple and efficient model, Skype allowed audio and video calls, as well as instant messaging, attracting a user base that included everyone from families separated by borders to professionals looking for cheaper and more convenient ways to hold remote meetings.

Its rapid growth caught the attention of the market, and in 2005, eBay purchased Skype for $2.6 billion. However, the partnership did not succeed, as the platform’s business model did not align with eBay’s e-commerce strategy. In 2009, the company sold 65% of Skype to a group of investors for $1.9 billion, before Microsoft acquired the service two years later.

In 2011, Microsoft made its biggest acquisition at the time by purchasing Skype for $8.5 billion. The company saw immense potential in the service to strengthen its presence in the digital communication market and decided to integrate it into its ecosystem.

Skype became incorporated into Office 365 and Windows, becoming the default communication service for the operating system. Additionally, it was launched as the official calling app for Windows Phone, making it the primary communication tool for millions of users of the platform.

Microsoft also replaced the old MSN Messenger with Skype, consolidating its position as a one-stop solution for instant messaging and online calls. For a while, the strategy seemed to be working, and Skype remained relevant as one of the most widely used platforms for videoconferencing.

Despite initial success under Microsoft’s leadership, Skype began to lose traction during the 2010s with the emergence of newer, more efficient platforms. Services like Apple’s FaceTime and Meta’s WhatsApp began offering integrated audio and video calls on smartphones, making Skype less attractive to casual users.

At the same time, Google launched Hangouts (now Google Meet), while Slack became widely adopted by companies for internal communication. In the corporate sector, Skype for Business enjoyed a period of popularity but was eventually replaced by Microsoft Teams, which offered more robust integration with the company’s tools.

The COVID-19 pandemic in 2020 led to an exponential rise in demand for videoconferencing services, but Skype did not benefit from this growth in the same way its competitors did. Zoom became the most popular platform for remote meetings, while Google Meet and Cisco WebEx gained ground in the corporate market.

Microsoft itself recognized this shift in the market and began investing heavily in Teams, which provided a more comprehensive solution for businesses and became its main focus for digital communication. Over time, Skype lost ground, and its end was finally announced.

With the shutdown of Skype, Microsoft seeks to consolidate Teams as its main communication platform. The company ensured that Skype users will be able to use their login credentials to access the free version of Teams, allowing for a smoother transition.

Although the decision marks the end of one of the most iconic services on the internet, its legacy remains. Skype pioneered the popularization of video calls, paving the way for the evolution of digital communication platforms. Its impact was so significant that it shaped the market and influenced the development of various tools that now dominate the industry.

For many users, Skype represented an essential connection with friends, family, and colleagues, and its farewell symbolizes the end of an era. As the digital world evolves with new technologies, Skype will be remembered as one of the major milestones in the online communication revolution.

Picture of Aarushi Sharma
Aarushi Sharma

an editor at TK since 2024.

DISCLAIMER:

You will never be asked to make a payment to access any kind of product, including credit cards, loans, or other offers. If this happens, please contact us immediately. Always read the terms and conditions of the service provider you are contacting. We earn revenue through advertising and referrals for some, but not all, products displayed on this website. Everything published here is based on quantitative and qualitative research, and our team strives to be as fair as possible in comparing competing options.

ADVERTISER DISCLOSURE:

We are an independent, objective, and advertising-supported editorial site. To support our ability to provide free content to our users, recommendations appearing on our site may come from companies from which we receive compensation as affiliates. This compensation may affect the manner, location, and order in which offers appear on our site. Other factors, such as our own proprietary algorithms and first-party data, may also affect how and where products/offers are placed. We do not include on our website all financial or credit offers currently available in the market.

EDITORIAL NOTE:

The opinions expressed here are solely those of the author and do not represent any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved, or endorsed by any of the entities mentioned in the message. That said, the compensation we receive from our affiliate partners does not influence the recommendations or advice that our team of writers provides in our articles, nor does it in any way affect the content of this website. Although we work hard to provide accurate and up-to-date information that we believe our users will find relevant, we cannot guarantee that all provided information is complete and make no statement or warranty regarding its accuracy or applicability.