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Microsoft to End Skype, Launch Free Teams Version in May

Author:Kristen Update:Mar 27,2025

Microsoft has officially announced the impending shutdown of Skype in May, marking the end of an era for the pioneering VoIP service. In its place, Microsoft will introduce a free version of Microsoft Teams, adapting to the evolving landscape of digital communication dominated by platforms like WhatsApp, Zoom, FaceTime, and Messenger.

According to reports from The Verge, existing Skype users will have a seamless transition to Microsoft Teams. They can log into the Teams app with their current Skype credentials, and all their content, including message history and contacts, will be readily accessible. However, Microsoft plans to discontinue support for domestic and international calls through Skype.

For those who wish to preserve their Skype data, Microsoft has provided a tool to export photos and conversation histories. Users have until May 5 to make their decision, as Skype will officially go offline on that date. Microsoft will honor existing Skype credits, but new customers will no longer have access to paid Skype features that enable international and domestic calls.

The most significant impact of Skype's shutdown is the loss of its ability to make calls to cellphones. Amit Fulay, Microsoft's vice president of product, explained to The Verge that while telephony functionality was crucial during Skype's peak, its relevance has diminished. "Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive," Fulay stated. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its focus on real-time video and voice communications and tap into Skype's 160 million active users. Skype was once integral to Windows devices and even promoted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has stagnated in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.