Microsoft is closing Skype after 21 years of operation: when and why
Why is Skype going away?
Skype is already a part of history. Many of us have used it at least once to communicate with our relatives or even to pass an online interview. But recently it became known that Microsoft is closing Skype after more than two decades of work. When exactly will this happen in 2025? And why was such a decision made in the first place?
MigNews will share the details below. Spoiler: Microsoft will completely shift its focus to Teams – a modern communications and collaboration hub.
A brief history: what is Skype?
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Skype, created by a group of Estonian developers, was launched in August 2003. Short for “Sky Peer to Peer,” Skype uses peer-to-peer technology, in which each participant acts as both a client and a server. Compared to traditional telephone services that charged for long-distance calls, Skype allowed users to make free voice and video calls over the Internet. Which was revolutionary at the time.
In 2005, Skype 2.0 was released, which introduced video calling. That same year, eBay acquired the company for approximately $2.5 billion. Skype went on to become one of the first platforms to integrate instant messaging and file sharing, continuing to democratize communication for friends and family around the world.
In 2011, Microsoft acquired Skype for $8.5 billion. In 2012, it was announced that Skype would replace Windows Live Messenger.
But with the advent of other platforms for video calling and messaging, Skype slowly but surely faded into the background.
Microsoft is shutting down Skype in May 2025: what's next?
Skype users will be able to switch to Microsoft Teams for free using their Skype credentials, Source: Microsoft
Microsoft wants to ensure a seamless and cost-effective transition to Teams, which already serves hundreds of millions of users. If you sign in to Teams with your Skype account, your chats and contacts will automatically appear in the app where you left off. During the transition, Microsoft will also provide cross-platform connectivity between Skype and Teams. Those who choose not to transition can also export their Skype data by May 5, 2025, including chat logs, contacts, and call history.
“Skype has become an integral part of shaping modern communications and supporting countless meaningful moments. And we’re honored to be a part of that journey,” the Skype team wrote. “We also understand that change can be challenging, and we want you to know that we’re here to support you every step of the way. We’re excited about the new capabilities Teams opens up, and we’re committed to helping you stay connected in new and meaningful ways.”
What is Microsoft Teams?
Microsoft Teams is a cloud-based collaboration software that offers core capabilities including business messaging, calling, video meetings, and file sharing. Businesses of all sizes can use Teams, which is accessible from a desktop computer, any internet-connected device, and the Teams mobile app.
Microsoft Teams was previously bundled with Microsoft Office. In an effort to avoid antitrust concerns, Microsoft separated Office from Teams in the European Union and Switzerland in October 2023, and the change took effect globally on April 1, 2024. Teams and other Microsoft 365 apps will be sold as separate products to new commercial customers. Existing customers will be able to continue using Office and Teams together.
Teams is Microsoft's primary cloud-based unified communications offering, competing with similar products such as Cisco Webex, Google Workspace, and Slack. As a business communications application, Teams enables local and remote employees to collaborate on content in real-time or near-real-time across devices, including laptops and mobile devices. Microsoft Teams integrates with other Microsoft business applications, including Exchange, PowerPoint, and SharePoint.
Microsoft Teams is particularly useful for remote collaboration because it allows for communication and collaboration between disparate groups of employees. The COVID-19 pandemic has led organizations around the world to widely use Microsoft Teams – as well as other collaboration apps – as a communication platform for remote teamwork.
Microsoft Teams is typically deployed across organizations, not just specific departments. In some cases, Teams can replace email for internal communication between company employees.
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