Microsoft has announced the discontinuation of Skype, the video-calling service it acquired for $8.5 billion in 2011. This decision, set to take effect in May, comes as the tech giant shifts its focus towards Microsoft Teams, its primary platform for video conferencing and team collaboration. Existing Skype users will be able to log into Teams with their current accounts.
Since its inception in 2003 by a group of Estonian engineers, Skype revolutionised online communication by enabling voice calls over the internet using VOIP technology. It also incorporated video calling features after being purchased by eBay in 2005. Barbara Larson, a management professor at Northeastern University, noted that Skype made high-quality video calls accessible to a broader audience, transcending the exclusivity of corporate environments, thus fostering global connections.
The platform was especially advantageous for startups and individuals, allowing extensive international communication without the burdensome costs typically associated with phone calls. However, it faced its share of challenges, such as becoming a target for scammers. By the time Microsoft acquired Skype, the service had amassed around 170 million users.
Former Microsoft CEO Steve Ballmer highlighted the cultural impact of Skype, which became synonymous with voice and video communication. Despite its earlier prominence, Skype’s relevance diminished over the years, particularly after the launch of Microsoft Teams in 2017, a response to the rising demand for workplace communication tools amidst competition from platforms like Slack.
During the COVID-19 pandemic, while platforms like Teams and Zoom surged in popularity, Skype struggled to maintain its position. Nonetheless, Skype played a crucial role in establishing the foundations for remote communication as it facilitated meaningful connections and problem-solving through higher-quality media for anyone with an internet connection.
Ultimately, Microsoft’s decision to phase out Skype is indicative of its strategy to concentrate on Teams, reflecting the shifting landscape of digital communication tools and the need for a streamlined service to remain competitive.