Microsoft Shutting Down Skype In May

Microsoft is shutting down Skype, the video-calling service it bought for $8.5 billion in 2011, which helped transform how people communicate online.

Microsoft has prioritized Teams over Skype for years, and the decision to phase out Skype reflects the company’s goal of streamlining its communications apps. I Photo: Finelite

The tech giant announced that it will retire Skype in May and shift some of its services to Microsoft Teams, its flagship videoconferencing and team collaboration platform, Matt O’Brien reported for the Associated Press (AP).

Skype users will be able to log into Teams using their existing accounts. Microsoft has prioritized Teams over Skype for years, and the decision to phase out Skype reflects the company’s goal of streamlining its communications apps as it faces growing competition.

Founded in 2003 by a group of engineers in Tallinn, Estonia, Skype was a pioneer in making phone calls over the internet instead of traditional landlines.

It relied on voice over internet protocol (VoIP) technology, which converts audio into a digital signal transmitted online. Skype added video calls after online retailer eBay bought the service in 2005.

“You no longer had to be a senior manager in a Fortune 500 company to have a high-quality video call with someone,” said Barbara Larson, a management professor at Northeastern University who studies the history of virtual and remote work. “It brought a lot of people around the world closer.”

The ability to bypass expensive international phone calls was a major advantage, not just for businesses but also for individuals. “You could suddenly have long calls, frequent calls, that were either free or very inexpensive,” Larson said.

As with other new platforms, scammers also took advantage of Skype.

By 2011, when Microsoft bought it from eBay, Skype had about 170 million users worldwide, then-Microsoft CEO Steve Ballmer said during the merger announcement.

“The Skype brand has become a verb, nearly synonymous with video and voice communications,” Ballmer said at the time.