Following more than two decades of leading the way in online communication, Microsoft has finally announced that Skype will close on May 5, 2025. The final act of a platform that changed the way people communicated on the internet but was unable to keep up with shifting technology and shifting user behavior. From being the king of video calls to a case study of how even the biggest platforms can get off track.

Skype’s success: a communication revolution

Founded in 2003 by Estonian developers Niklas Zennström and Janus Friis, Skype introduced a revolutionary way of communicating via voice and video calls on the internet, without relying on traditional telephone networks. Its ease and free-call policy turned it into an overnight sensation, with millions of subscribers worldwide.

eBay acquired Skype by 2005 for $2.6 billion with the hope of integrating it into its e-commerce site. However, this move did not make any significant contribution, and after a series of changes in ownership, Microsoft acquired Skype in 2011 for $8.5 billion and made it the lead communication software of its online platform.

Skype’s peak saw it dominating online conversation, offering lower-cost international calls, business conferencing tools, and convenient personal communication. Skype hit a record of over 300 million active users at its height, becoming the go-to tool for online communication.

What went wrong? The downward spiral

Although it first dominated the scene, Skype’s fall was spurred by a combination of mismanagement, competition, and changing user expectations.

Overcomplication & performance issues

Skype gradually got clogged with features that made it slow and irksome. Its repeated overhauls complicated the service, moving away from the simplicity that had made it popular. Customers began complaining about lag, connection lost, and a generally less smooth experience in comparison to newer options.

Rise of competitors: Zoom, WhatsApp, and FaceTime

When mobile-first communication was the trend, WhatsApp, FaceTime, and Facebook Messenger led the charge by offering simple and instant video calling. During the COVID-19 pandemic, when the demand for video conferencing shot up immensely, Zoom dominated the market with a simple-to-use interface and robust features. By 2023, Zoom dominated over 55% of the video conferencing market, while Skype’s market share dropped to just 1.41%.

Microsoft’s strategic shift toward teams

In 2017, Microsoft launched Teams as a more business-oriented communication tool integrated into Office 365. Microsoft promoted Teams as its lead collaboration tool and eventually replaced Skype for Business with it, relegating the latter to the consumer version of Skype. By 2020, Microsoft Teams had over 270 million active users and was the company’s standard communication platform.

Security and privacy issues

Competitors like Signal and Telegram grew in popularity due to their improved encryption and privacy-based model. In addition, Skype was slow to implement end-to-end encryption, which prompted security-conscious users to migrate to more secure platforms.

Microsoft’s Official Goodbye to Skype

With the official notice that Skype will be ending on May 5, 2025, Microsoft is consolidating its communication products under the Microsoft Teams banner . Microsoft’s President of Collaborative Apps and Platforms Jeff Teper confirmed that Teams will take on all of Skype’s functions, giving users a more streamlined and modern communications experience.

Even though Skype will remain available through May 2025, Microsoft encourages users to transition to Teams as soon as possible.

The legacy of Skype

Skype’s legacy is one of pioneering, dominance, and eventual failure. It created internet-based communications, making easy and cheap global conversations possible. Although it failed to keep up with mobile fashions, competition, and evolving user requirements, it brought about its own demise.

As Skype becomes a memory, it’s a reminder of how the biggest technology giants can fall if they fail to innovate. Microsoft Teams may be leading the way now, but to many, Skype will always be the one that brought the world together first.