Skype will be retired on May 5th, and existing users will need to export their data or migrate to Teams.
It’s the end of an era for one of the most iconic communication platforms. Microsoft has officially announced that Skype will be discontinued in May, making way for Microsoft Teams to take its place. This transition marks a significant shift in Microsoft’s consumer strategy, as it consolidates its communication services under the Teams umbrella. But what does this mean for loyal Skype users? Let’s break it down.
The Transition: What Happens to Your Skype Account?
Starting in May, Skype users will have two options: seamlessly migrate to Microsoft Teams or export their data and move on. According to Jeff Teper, president of Microsoft 365 collaborative apps and platforms, the transition is designed to be as smooth as possible.
“Skype users will be in control, they’ll have the choice,” says Teper in an interview that “They can migrate their conversation history and their contacts out and move on if they want, or they can migrate to Teams.”
This migration isn’t just about moving contacts. Microsoft promises that message history, group chats, and even call logs will be available in Teams without the need to create a new account. And for those who decide to part ways with Microsoft’s communication ecosystem, an export tool will allow users to save their conversations and media files.
The 60-Day Countdown
Skype will remain online until May 5th, giving users a 60-day window to make their decision. During this period, Microsoft is maintaining interoperability between Skype and Teams, so users can message friends who are still on Skype — bridging the gap during the transition.
“If they do want to come to Teams, then the first-run is pretty instantaneous because we’ve already done the work on the backend to restore their contacts, message history, and call logs,” explains Amit Fulay, vice president of product at Microsoft.
The End of Skype Calling
One major feature that won’t be making the jump to Teams is Skype’s telephony services. The ability to call domestic and international phone numbers will be phased out, reflecting broader industry trends.
“Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive,” says Fulay. “If we look at the future, that’s not a thing we want to be in.”
Microsoft will honor existing Skype credits and subscriptions, but no new customers will be able to purchase these services. Current users can continue using their credits and subscriptions within Teams until the end of their next renewal period. However, Skype Number users will need to port their numbers to another provider, as Microsoft is discontinuing this service entirely.
Why Microsoft Is Saying Goodbye to Skype
Microsoft acquired Skype in 2011 for a whopping $8.5 billion, but the platform has struggled to keep up with modern competitors like Zoom, WhatsApp, and FaceTime. Despite a brief surge in usage at the start of the COVID-19 pandemic, Skype’s user base has remained stagnant.
“The Skype userbase actually grew at the beginning of the pandemic, and has been pretty flat since,” admits Teper. “It’s not shrunk in some dramatic way. It has been relatively flat over the last few years. We hope we’ll migrate most Skype users… but we want to make sure the users know they’re in control.”
Microsoft has been gradually pivoting towards Teams for years, especially after launching the personal version in 2020. The decision to retire Skype comes after careful consideration of user trends and the evolving communication landscape.
“Initially the vision was to have one experience across work and life… but Teams was new and that was not realistically where we were in 2020,” reveals Teper. “So we continued to invest in Skype, and about two to three years ago we started bringing in the free Teams consumer experience with the new client. We wanted to wait until the adoption was at the scale where we could be very convinced it was the right time.”
The Future: A Full Commitment to Teams
The silver lining is that the transition won’t result in job cuts — at least not immediately. The Skype and Teams development teams have already merged, focusing their efforts on improving Teams with new features and innovations, including AI enhancements.
“There’s one team, which is Microsoft Teams and Skype. On the backend it has actually evolved to a common team,” says Teper. “There won’t be layoffs, those folks are going to be working on making things better — whether it’s fun end user features or AI innovation, it’s really about doubling down on Teams.”
While the end of Skype might feel like losing an old friend, Microsoft promises that Teams will carry forward the best aspects of Skype, while delivering a modern experience tailored to today’s communication needs. The era of Skype may be ending, but Microsoft’s vision for connected communication is far from over.
If you’re a Skype user, the clock is ticking. Make your decision by May 5th: migrate to Teams or save your memories and bid Skype farewell. Either way, it’s clear that the future of communication at Microsoft is all about Teams.
Are you ready for the switch? Let me know your thoughts on this big change — I’d love to hear what you think!
