Microsoft announced Friday it will retire Skype, its iconic internet calling service, in May 2024 – marking the end of an era for a platform that revolutionized global connectivity. All existing Skype users will migrate to Microsoft Teams, the company's unified communication platform, as the tech giant consolidates its offerings amidst fierce competition.
First launched in 2003 by Estonian developers, Skype pioneered Voice over Internet Protocol (VoIP) technology that converted landline-reliant calls into digital transmissions. Its $8.5 billion acquisition by Microsoft in 2011 signaled the platform's peak influence, boasting 170 million users worldwide and becoming synonymous with video conferencing.
"Skype democratized high-quality remote communication," said Barbara Larson, a Northeastern University management professor. "Suddenly, grandparents could video-call grandchildren overseas, startups could collaborate globally, and journalists could interview presidents – all without Fortune 500 budgets."
While Microsoft gradually deprioritized Skype following Teams' 2017 launch, the COVID-19 pandemic accelerated workplace reliance on unified platforms. Teams now competes with Zoom and Slack in a $50 billion+ enterprise communication market, according to Grand View Research.
Analysts note Skype's legacy persists: Its innovations in cross-border affordability and user-friendly interfaces laid groundwork for today's hybrid work culture. A Microsoft spokesperson confirmed historical chat logs and credit balances will transfer to Teams, preserving two decades of digital connections.
