S Poddar
After more than 20 years of redefining global communication, Skype will officially go silent on May 5. Microsoft, the tech giant behind the once-revolutionary platform, announced its decision to phase out the service in favor of its newer, enterprise-focused platform, Teams.
Skype originally appeared in 2003 as a revolutionary internet calling service that transformed long-distance communication through free and affordable audio and video calls. It gained instant popularity, shaking up the conventional landline business and attracting hundreds of millions of users globally. Nevertheless, as technology continued to advance, Skype found it difficult to keep up with smoother and mobile-optimized rivals such as Zoom, FaceTime, and Slack.
Microsoft bought Skype in 2011 for $8.5 billion, beating out other big players in the industry such as Google and Facebook. The platform at the time had about 150 million monthly users. But as its reign supreme in the beginning of video communications, Skype witnessed a steady erosion of its base. By 2020, the figure had fallen to about 23 million, despite a temporary spike due to the pandemic-fueled move to working from home and virtual meetings.
As collaboration platforms gained more importance, Microsoft pivoted to Teams, which was introduced in 2017. While Skype was more a bolt-on product for Microsoft, Teams was created from scratch to be tightly integrated into Microsoft’s productivity software suite, specifically for businesses and enterprises. Microsoft promoted Teams intensely, positioning it at the center of its communications strategy, especially during the pandemic when video conferencing usage boomed.
Skype’s technology, developed for the desktop, had difficulty keeping pace with the smartphone era. Though still a recognizable name, consumers preferred newer platforms as more intuitive and dependable options for personal and professional communication. Applications such as Zoom, Google Meet, and Apple’s FaceTime started taking over the market, leaving Skype behind.
To many, Skype was not just a communication tool but a cultural phenomenon. It was one of the first tech brands to be elevated to verb status, where people would informally say they would “Skype” someone, as is the case with “Googling” having become an internet search equivalent. The site was once identified with video calls, but this impact declined over time.
Microsoft recognized Skype’s contribution to defining new-age communication, saying, “We are proud to have been along for the ride. Skype has played a central role in defining modern communications.” Microsoft assured users that the move to Teams would be seamless, with existing Skype accounts, chats, and contacts transferred automatically to the new platform. Users will have access to Teams on supported devices free of cost using their existing credentials.
The retirement of Skype is the end of an era, but it is also a testament to the ever-changing nature of the tech world. Although Skype’s place in history as a trailblazer in internet calling will never be forgotten, Microsoft is now looking toward the future of collaboration in the workplace. As Teams expands, it’s obvious that how people connect—both on a personal and professional level—will continue to change with new technology breakthroughs.
