Microsoft is pulling the plug on Skype, the iconic online calling and messaging service it acquired 14 years ago.

Skype will be discontinued in May, marking the end of a legendary era for online communication, as Microsoft fully shifts its focus to Teams, the platform that now dominates the professional workspace.

Once synonymous with digital calls that bypassed long-distance charges, Skype has been overtaken in recent years by smartphone communication apps and Zoom video calls.

When Microsoft attempted to expand Skype into workplace communications, it lost ground to Slack Technologies. In response, Microsoft built Teams from scratch—a voice and video communication service tailored for the workplace—which rapidly gained traction. The company will offer Skype users the option to transition to Teams, which has now become the strongest competitor to Salesforce-owned Slack. Skype is set to shut down in May.

Microsoft reported over 300 million Skype users in 2016, but this number dropped to 36 million by 2023. In contrast, Teams’ monthly users have surged to 320 million.

Founded in 2003 by Scandinavian entrepreneurs, Skype was once owned by eBay. Former Microsoft CEO Steve Ballmer secured the acquisition with an $8.5 billion bid—paying a 40% premium over Skype’s internal valuation. The May 2011 deal was Microsoft’s largest acquisition at the time, and Skype became a key part of its strategy in the emerging mobile era.

However, new players like Telegram, Snapchat, WeChat, and WhatsApp addressed issues that Skype failed to resolve.

When Slack entered the market, Skype users complained about declining service quality, missed calls, and failed data synchronization across devices. Microsoft attempted to improve Skype’s reliability, but the effort was in vain.

Microsoft is not the only company struggling with online communication services. Google has faced challenges with its Chat and Meet tools, while Amazon recently announced it would discontinue its video and voice calling service, Chime.

The Windows maker is shutting down Skype to focus on developing new features for Teams, including AI-powered tools. Microsoft has confirmed that Skype employees will be reassigned to other departments within the company, with no job losses expected.

source: https://www.checkincyprus.com/article/78068/telos-epokhes-e-microsoft-kleinei-to-skype-meta-apo-14-khronia/