Microsoft has announced it will retire the iconic Skype platform in May, marking the end of an era for a service that once revolutionized online communication. Originally launched in 2003 by a team of engineers in Tallinn, Estonia, Skype became a pioneer in enabling telephone calls over the internet, effectively using the web as a substitute for traditional landlines. The service saw exponential growth, boasting approximately 170 million users worldwide by 2011 when Microsoft acquired it for $8.5 billion from eBay.
In 2017, Skype was still regarded as a high-tech communication tool, utilized by prominent organizations including the Trump administration, which fielded questions from journalists using the platform. Despite its historical significance and widespread use, Microsoft has shifted its focus to Microsoft Teams in recent years, ultimately deciding to phase out Skype entirely.
The decision to retire Skype is part of a broader trend in how individuals communicate online. Microsoft has prioritized Teams as its primary platform for business communication and collaboration, leading to a gradual decline in Skype's relevance. As a consequence, some of Skype's services will be integrated into Teams, allowing users to transition smoothly. Existing Skype users will be able to use their current accounts to log into Teams, easing the migration process.
The Skype brand has become so ingrained in the fabric of modern communication that it is often referred to as a verb synonymous with video and voice communication. Steve Ballmer, former CEO of Microsoft, once stated, “The Skype brand has become a verb, nearly synonymous with video and voice communications.” This highlights the profound impact that Skype had on the way people connect across the globe.
Despite its storied past, Skype's retirement reflects changing user preferences and technological advancements. The integration of video calls into the platform after Microsoft's acquisition in 2011 helped solidify its status as a leader in video and voice communications. However, as newer platforms like Teams have emerged, they have gradually overshadowed Skype's once-dominant presence.