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Microsoft is indeed shutting down Skype, with the service set to retire on May 5, 2025. This move is part of Microsoft's strategy to focus on its Teams platform, which has gained significant traction, especially during the pandemic
Skype, which was acquired by Microsoft in 2011 for $8.5 billion, was once a pioneering platform for internet-based communication. However, with the rise of alternative messaging apps and video conferencing tools, Skype's user base has declined significantly. In 2023, Microsoft reported that Skype had around 36 million daily users, a far cry from its peak of 300 million users in 2013 ².
Microsoft's decision to shut down Skype is also driven by its desire to simplify its communication offerings and focus on Teams, which has become a key component of its Office 365 suite. Teams offers a more integrated experience, allowing users to communicate, collaborate, and access various Office tools in one platform.
Existing Skype users will be able to migrate their contacts and chat data to Teams, and Microsoft has made it easy for users to download their Skype data using the app's built-in export tool. However, some features, such as the ability to call domestic or international numbers, will not be available in Teams Free.
Overall, Microsoft's decision to shut down Skype marks the end of an era for the pioneering communication platform. However, with Teams poised to take its place, Microsoft is betting on a more integrated and streamlined communication experience for its users.