Microsoft today announced that it will officially retire Skype on May 5, 2025, concluding its 14-year tenure as the owner of the once-dominant internet calling and messaging service (via Bloomberg). ...
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Discussion Points
- What factors contributed to Skype's decline in relevance?r
- How will Microsoft's decision to discontinue Skype impact its users and competitors?r
- Can Teams overcome the challenges that led to Skype's downfall, or are there inherent limitations to its success?
Summary
Microsoft has announced the retirement of Skype on May 5, 2025, marking the end of a 14-year tenure for the once-dominant internet calling and messaging service. The company acquired Skype in 2011 for $8.5 billion, but it has since struggled to compete with newer platforms like Zoom, WhatsApp, and its own Teams service.Skype's decline can be attributed to various factors, including frequent UI changes, reliability issues, and a shift toward enterprise use.
These challenges, combined with the rise of competitors, led to Skype's active user base shrinking from 300 million in 2011 to just 36 million by 2023.As Microsoft prioritizes AI features within Teams, existing Skype users will have until May 5 to migrate their data and contacts to the new platform or seek alternative solutions. The company has chosen not to lay off employees currently working on Skype, instead reassigning them to other projects.