Microsoft will retire Skype in May 2025, focusing on Microsoft Teams. Users can migrate to Teams or export their data. Teams boasts 320 million monthly users.
Microsoft is set to retire Skype in May 2025, marking the end of a two-decade-old internet calling service that once revolutionized how people connect across borders. The company aims to streamline its communication offerings by focusing on Microsoft Teams, its modern communications and collaboration hub.
Founded in 2003, Skype rapidly disrupted the landline industry in the early 2000s with its audio and video calls. It became a household name, boasting hundreds of millions of users at its peak. However, in recent years, Skype has struggled to compete with more user-friendly and reliable rivals like Zoom and Slack. This is partly because Skype’s underlying technology became less suited for the smartphone era.
When Microsoft acquired Skype in 2011 for $8.5 billion, outbidding Google and Facebook, the service had approximately 150 million monthly users. By 2020, this number had decreased to roughly 23 million, despite a temporary resurgence during the COVID-19 pandemic.
Over the years, Microsoft faced challenges in integrating Skype into its suite of tools and struggled to adapt to the rise of competitors like Apple’s FaceTime and Google’s communication apps. The launch of Microsoft Teams in 2017 further shifted the company’s focus.
The Rise of Microsoft Teams
Microsoft Teams experienced a surge in popularity during the pandemic as more people moved their work and personal meetings online. The company has aggressively integrated Teams with other Office apps, targeting corporate users who were once a major base for Skype.
According to Jeff Teper, Microsoft’s president of collaborative apps and platforms, Teams offers the same core features as Skype, such as one-on-one and group calls, messaging, and file sharing. Additionally, Teams provides enhanced features like hosting meetings, managing calendars, and building and joining communities for free.
Transition for Skype Users
Skype users now have two options: migrate to Microsoft Teams or export their Skype data, including chats, contacts, and call history. Microsoft is facilitating the transition by allowing users to log into Teams with their Skype credentials, automatically migrating chats and contacts.
During the transition period, Teams users can call and chat with Skype users, and vice versa, ensuring continuous connectivity regardless of the platform. Microsoft has prepared a step-by-step guide to help users get started with Teams and utilize its features.
Changes to Skype Paid Offerings
Microsoft will no longer offer paid Skype features to new customers, including Skype Credit and subscriptions for international and domestic calls. Current Skype subscription users can continue to use their Skype Credits and subscriptions until the end of their next renewal period. After May 5, 2025, the Skype Dial Pad will be available to remaining paid users from the Skype web portal and within Teams.
Microsoft’s Perspective
Microsoft has stated that retiring Skype will help streamline its free services and allow it to focus on Teams. The company aims to adapt more easily to customer needs by consolidating its communication offerings.
Microsoft acknowledges the challenges that come with change and assures users that it will provide support throughout the transition. The company is excited about the opportunities that Teams brings and is committed to helping users stay connected in new and meaningful ways.
The Legacy of Skype
Skype has played a significant role in shaping modern communications, enabling countless meaningful moments. As Microsoft bids farewell to Skype, it recognizes the platform’s integral part in the evolution of how people connect.
While the sunsetting of Skype may surprise some, given Microsoft’s years-long deprioritization of the platform, it marks another chapter in the ever-changing landscape of communication tools. Skype will join other discontinued services like Duo and AOL Instant Messenger in the history of technological innovation.
Microsoft declined to share the latest user figures for Skype but noted that Teams has approximately 320 million monthly active users.
Sources: https://www.bbc.co.uk/news/articles/cn7vxlrvxyeo
https://www.theguardian.com/technology/2025/feb/28/microsoft-skype
https://www.microsoft.com/en-us/microsoft-365/blog/2025/02/28/the-next-chapter-moving-from-skype-to-microsoft-teams/