Microsoft shutting down Skype

 

 

Microsoft has planned to shut down the SKYPE on 5th May 2025, which is the last day. RIP SKYPE one of the most popular and easy-to-use video calling software of its times. Skype connected people for the past 23 years around the world.

History

Skype was developed in 2003 by Janus Friis from Denmark and Niklas Zennström from Sweden, with its headquarters established in Luxembourg. The software was initially created by Estonian engineers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, who, along with Friis and Zennström, had also contributed to developing the peer-to-peer file-sharing platform Kazaa.

The domain names Skype.com and Skype.net were registered in April 2003, and by August, the first public beta version was released. Initially called "Sky peer-to-peer," the project was later shortened to "Skyper." However, since related domain names were already taken, the final "r" was dropped, resulting in the name "Skype."In 2005, eBay acquired Skype for $2.6 billion. It was later sold to Silver Lake Partners, a private equity firm, in 2009. Microsoft acquired Skype for USD 8.5 billion in 2011

Microsoft Acquired Skype

In 2011, the primary reason for acquiring Skype was to compete with rivals. Google was offering Google Voice and Hangouts, and Apple has Time, Microsoft needed a robust communication platform to stay competitive, other factors that influenced the decision were:

Enhancing Communication Services – Microsoft aimed to bolster its presence in voice and video communication by integrating Skype with its products like Windows, Office, and Xbox.

Enterprise Solutions – Skype’s integration with Microsoft Teams and Office 365 would improve business communication tools for enterprise customers.

Expanding User Reach – At the time, Skype had approximately 300 million users, providing Microsoft with access to a large and established network.

Cloud and AI Alignment – Skype’s voice and video infrastructure complemented Microsoft’s Azure cloud services and advancements in artificial intelligence.

Though Microsoft acquired Skype it wasn’t a smooth sail in the beginning. They were facing a challenge in monetising Skype. There were new and faster communication tools were launched. On the technological front Microsoft faces quite a challenge to transfer Peer-to-Peer communication to Cloud-based architecture. However, Microsoft overcame these challenges in the due course of time and eventually moved in the right direction with Skype technology.

In the long run, this acquisition proved to be worthwhile: Microsoft integrated Skype’s technology into Teams, which became a huge success during the remote work boom. Skype’s core technology helped enhance AI-driven voice and video features in Microsoft’s ecosystem. Eventually, Skype itself declined, and Microsoft leveraged its acquisition to become a major player in enterprise communication.

Microsoft was able to compete with the competitors and become a dominant player in enterprise communication, not with Skype but with MS Teams. Microsoft pivoted from Skype to Teams, launching it in 2017 as an enterprise collaboration tool. By 2020, Teams had over 250 million monthly active users, surpassing Slack and competing directly with Google Meet and Zoom in the business world. MS Teams did the deep integration with Office 365, One Drive, and Outlook giving Microsoft an edge over Google Workspace.

Here are the best Skype alternatives:

Google Meet

A key advantage of using Google Meet is its availability for free with a Google account. Since many people already use Google and have existing accounts, switching to this platform is relatively seamless. Google Meet enables users to host meetings with up to 100 participants, record sessions, share screens, and more. However, a limitation of the free plan is that meetings with more than three participants are restricted to 60 minutes. For larger organizations, upgrading to a Google Workspace plan may be beneficial. Paid plans offer features such as support for up to 25 co-hosts, breakout rooms for dividing participants into smaller groups, polling, Q&A sessions, live streaming to YouTube, and more. Google Workspace—with pricing tiers starting at $7/month, $14/month, $22/month, and higher—also includes AI-powered tools through its Gemini assistant, which helps Meet users take notes and generate custom background images.

Zoom

Zoom is a widely used web-conferencing platform that offers a range of useful features, such as hosting 100 participants, enabling private and group chat, and taking notes, providing equipment such as a virtual whiteboard and screen sharing. Users can also record meetings and access tapes for reviews. A limit, however, is a restriction of 40 minutes for meetings on the free plan. To avoid interruptions, users can opt for a payment subscription, priced to prices USD 13 to USD 18 per month. Subscribers gain access to Zoom's AI partner, which provides facilities such as the meeting summary and the ability to ask questions about tape.

WebEx

WebEx, a video conferencing tool owned by Cisco, provides a plan similar to that of its rivals. For example, it has features such as screen sharing, recording ability, a whiteboard capacity and more. The free plan includes an unfortunate 40-minute time limit along with 100 attendees per meeting. The WebEx also offers a plan of $ 12/month, $ 22/month and above, depending on the size of the team. Paid Tier comes with an AI Assistant, and Live Polling facility.

Discord

Originally designed as a chat platform for gamers, Discord has evolved to also serve as a versatile tool for personal use or small teams. However, it may not be the best fit for large businesses, as it limits group calls to 25 participants. On the plus side, Discord offers a range of useful features, including unlimited meeting durations, screen sharing, call recording, and breakout rooms. The platform provides a free plan, along with two paid options priced at USD 5/monthand10/month, making it one of the more affordable solutions available, depending on user needs.

Slack

Slack is good for informal team chats, but may not be ideal for formally scheduled meetings with large groups. The Huddle feature helps users quickly move from chat to informal audio-video calls. On the free plan, Huddles can accommodate only two people, whereas paid plans (priced at $7/month or $12/month) allow for up to 50.

Signal

Signal, the encrypted messaging app, introduced group video-calling functionality in 2020, supporting up to 50 participants in a single call. While it isn’t a direct competitor to Skype, it offers a convenient feature for sharing call links, allowing users to invite others without the need to manually create a similar to platforms like Google Meet, Zoom, and Microsoft Teams. A standout advantage is that Signal is completely free to use. For mobile users seeking video-calling solutions for smaller groups, other popular options include WhatsApp, Facebook Messenger, and Apple FaceTime.

 Conclusion

Microsoft's phasing out of Skype signifies the end of an era for the pioneering communication tool. While Skype severed and paved the way for modern video calling, its limitations and the rise of more advanced platforms have led to its gradual decline. Microsoft Teams now stands as the company's primary focus, offering a more comprehensive solution for both personal and professional communication needs.