Microsoft (MSFT, Financials) announced plans to discontinue Skype in May 2025, phasing out the communication platform after more than two decades.
The action is part of the company’s larger plan to unite under Microsoft Teams its communication offerings.
Moving to Teams is urged of users as it will be Microsoft’s main consumer communication tool. With conversations and contacts sent automatically, the change will let Skype users log in to Teams using their current credentials. Teams and Skype users will still be able to call and message each other during the changeover time.
Founded in 2003, Skype became more important for worldwide communication especially in relation to pricey foreign calls. But coupled with difficulties adjusting to mobile-first use, competition from sites like Zoom (ZM, Financials), Slack, and WhatsApp added to its fall.
Microsoft also intends to cut off commercial aspects of Skype, like call subscriptions and Skype Credit, therefore deterring new users from using these tools.
Microsoft’s collaborative applications and platforms president, Jeff Teper, said the business acknowledges Skype’s past significance and is working on simplifying Team communication capabilities.
The choice emphasizes connectivity and interoperability within Microsoft’s ecosystem, matching its larger drive to streamline its software offers.
This article first appeared on GuruFocus.
