Microsoft has confirmed it will retire a notable product, to add to the host of other failed ventures at Redmond over the years.

In a blog post Jeff Teper, President, Collaborative Apps and Platforms, confirmed that former VoIP giant Skype will be retired on Monday 5 May 2025, in order to focus on its current communications tool Microsoft Teams (free).

For Skype the writing had been on wall for some time now, and rumours of its expected demise kicked up a notch in July 2019 when Microsoft began removing some of the functionality from the Android-based Skype client.

Skype’s beginning

Skype had been officially launched as a voice-over-IP beta service on 29 August 2003, but its history was rooted in a peer-to-peer music sharing program called Kazaa.

By 2005 it was hugely popular for giving people a way to talk (even internationally) without paying a phone company.

It came to the attention of the auction website eBay, which purchased Skype for an eye watering $2.5bn (£2bn). eBay intended to integrate Skype into its auction process, but that never happened.

Several months after its acquisition by eBay, Skype introduced video calls for the very first time, and its popularity surged once again.

But Skype never sat easy within eBay and the firm later admitted it had overvalued the unit by around $900m, before offloading most of its stake to a venture capitalist.

Skype’s decline

In 2011 Microsoft acquired Skype for $8.5 billion – at the time its largest ever acquisition – and Redmond’s ownership was also not without its controversies.

Microsoft had redesigned Skype in 2017, that saw the addition of Snapchat-like features as part of a redesigned user interface.

That move angered many of Skype’s user base, who felt that the increasingly complicated features got in the way of Skype’s core uses of messaging and making phone calls.

And in 2018 Microsoft had hoped to update its desktop app to look similar to its mobile app, when it said that Skype 7.0 (Classic Skype) would be retired on 1 September 2018.

Want to know about the history of Skype? Read Silcion UK’s Tales In Tech History article about the former VoIP powerhouse.

Redmond had urged users to upgrade to Skype version 8.0 in order to avoid loss of service, but following angry responses from Skype users, Microsoft u-turned and promised not to axe support for Classic Skype.

Microsoft had faced a large number of holdouts for Classic Skype, as users were unhappy at the new version’s redesigned interface.

And users were also unhappy that Skype had become somewhat slow and bloated compared to quick and lean versions of the past.

Skype’s decline was also hastened thanks to intense competition from the likes of WhatsApp, Messenger, Signal, and FaceTime in the consumer space.

In 2023, Microsoft said Skype had 36 million daily active users., which was down from 40 million in March 2020.

Skype retirement

And now has come the sad news that Skype will finally be put out to pasture, ending a 22 year run for the calling and messaging service.

“In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub.,” wrote Microsoft’s Teper.

He pointed out that with Teams, users have access to many of the same core features they use in Skype, such as one-on-one calls and group calls, messaging, and file sharing. Additionally, Teams offers enhanced features like hosting meetings, managing calendars, and building and joining communities for free.

People will be able to use their Skype credentials in Microsoft’s Teams communication app free of charge, or they can export their data (chats, contacts, and call history) if users prefer not to migrate to Teams.

For those wishing to migrate to Teams, they can download the app here and login with their Skype credentials.

“Thank you for being part of Skype,” wrote Teper. “Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honoured to have been part of the journey.”

“We also understand that change can be challenging and want you to know that we’re here to support you every step of the way,” Teper concluded. “We’re excited about the new opportunities that Teams brings and are committed to helping you stay connected in new and meaningful ways.”