Microsoft is shutting down Skype

**Abstract: Microsoft to Shut Down Skype and Transition Users to Microsoft Teams** Microsoft has announced that it will be shutting down Skype on May 5th, 2023, marking the end of a service that has been a staple in online communication for over two decades. The company will replace Skype with the free consumer version of Microsoft Teams, a move that reflects Microsoft's broader strategy to unify its communication and collaboration platforms. Existing Skype users will have the option to migrate their data, including message history, group chats, and contacts, to Microsoft Teams without the need to create a new account. Alternatively, they can choose to export their data, which will include photos and conversation history, using a tool provided by Microsoft. **Key Events and Elements:** - **Event:** Microsoft is shutting down Skype and replacing it with the free consumer version of Microsoft Teams. - **Time:** The transition will begin on May 5th, 2023, with a 60-day window for users to decide on migration or data export. - **People Involved:** Jeff Teper, president of Microsoft 365 collaborative apps and platforms, and Amit Fulay, vice president of product at Microsoft, provided insights into the transition. - **Locations:** The decision affects Skype users globally. **Details of the Transition:** During the 60-day transition period, Skype will remain operational, and Microsoft will maintain interoperability between Skype and Microsoft Teams, allowing users to message contacts on either platform. Once the transition is complete, the telephony features that allow users to call domestic or international numbers or mobile phones will be removed from Microsoft Teams for consumers. This decision is based on the company's analysis of usage trends and the broader shift towards Voice over IP (VoIP) services, which have become more accessible and cost-effective due to higher bandwidth and lower data plan costs. **Impact on Existing Skype Users:** Microsoft will honor existing Skype credits and subscriptions, allowing users to continue using these features within Microsoft Teams until the end of their next renewal period. However, the company will no longer offer new customers access to paid Skype features for making or receiving international and domestic calls. Users with Skype Numbers will need to port their numbers to another provider, as Microsoft will no longer support this service. The Skype Dial Pad will be temporarily available in Teams for users with remaining credits and subscriptions. **Background and Context:** Skype, acquired by Microsoft in 2011 for $8.5 billion, has faced increasing competition from other communication platforms like FaceTime, Messenger, and WhatsApp. The early stages of the COVID-19 pandemic further highlighted the service's declining relevance, as consumers and businesses flocked to Zoom and other video conferencing tools. Despite an initial growth in user base at the beginning of the pandemic, Skype's user numbers have remained relatively flat over the past few years, according to Microsoft. **Microsoft’s Strategy:** Microsoft's decision to retire Skype and focus on Microsoft Teams is part of a broader strategy to streamline its communication and collaboration offerings. Teams, originally designed for business use, has been expanded to include a free consumer version, which Microsoft launched in 2020. At the time, the company stated its commitment to Skype, but recent actions, such as the phase-out of Skype credits and phone numbers in favor of subscriptions, have signaled the service's impending retirement. Jeff Teper explained that the vision for a unified experience across work and life was initially challenging to achieve with Teams, which was still a relatively new platform in 2020. However, with the consumer version of Teams now well-established, the company feels confident in making the transition. The backend teams for Skype and Teams have already been merged, and the transition is expected to allow Microsoft to focus its resources on enhancing Teams with new features and innovations. **Employee Impact:** The retirement of Skype will not result in immediate job cuts. The team responsible for Skype will continue to work on improving Microsoft Teams, focusing on both consumer and enterprise features. This includes developing fun end-user features and advancing AI innovations. **Conclusion:** Microsoft's decision to shut down Skype and transition users to Microsoft Teams is a significant move that reflects the evolving landscape of online communication. While the company is providing a smooth transition for existing users, the removal of telephony features underscores a shift towards more modern and cost-effective communication methods. The transition is expected to enhance Microsoft's position in the consumer market, leveraging the strengths of Teams to provide a more integrated and feature-rich experience.