Having redefined cross-border communication, the internet-calling service Skype is shutting down after ruling for over two decades. Its parent company, Microsoft, aims to promote its homegrown Teams app by launching a free version. Skype's last call will take place on May 5, 2025. After that, users logging into Skype will be redirected to Teams.

Launched in 2003, Skype revolutionized communication by offering audio and video calls that challenged traditional landlines. At its height, it gained widespread popularity with hundreds of millions of users. However, in recent years, the platform has faced stiff competition from more user-friendly and dependable alternatives like Zoom and Salesforce's Slack. Microsoft said on Friday that "Skype has been an integral part of shaping modern communications".

"We are honored to have been part of the journey."

According to the Reuters report, Skype's decline was partly due to its underlying technology, which was not optimized for the smartphone era. When remote work surged during the pandemic, boosting demand for virtual business meetings, Microsoft prioritized Teams, tightly integrating it with Office apps to attract corporate users—a segment that was once a stronghold for Skype.

To simplify the shift from Skype, Microsoft has provisioned users access Teams for free on any compatible device using their current login details, with their chats and contacts transferring seamlessly.

This marks Skype as the latest in a string of ambitious Microsoft ventures that fell short, joining the ranks of Internet Explorer and Windows Phone. Other tech giants have also faced challenges in the online communication space, including Google experimenting through platforms like Hangouts and Duo.

Microsoft acquired Skype in 2011 for $8.5 billion, outbidding Google and Facebook, which was one of its biggest deals of that time. According to the Reuters reports, at the time, Skype had approximately 150 million monthly users, but by 2020, that figure had shrunk to around 23 million, despite a temporary boost during the pandemic.

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