Microsoft is shutting down Skype in May, transitioning users to a free version of Microsoft Teams. This move comes as VoIP communication is dominated by platforms like WhatsApp, Zoom, FaceTime, and Messenger, rendering traditional cellphone calls via Skype less relevant.

Existing Skype users can seamlessly transfer their data (messages, contacts) to Microsoft Teams without creating a new account. However, Microsoft will discontinue support for domestic and international calls. Users can also export their Skype data, including photos and chat history, using a provided tool. A 60-day window begins May 5th for users to transition. Microsoft will honor existing Skype credits but will not offer new paid Skype call features.

The primary loss with Skype's closure is the ability to make calls to landlines and cell phones. Microsoft cites declining usage and the prevalence of affordable mobile data plans as reasons for this decision. Amit Fulay, Microsoft's vice president of product, stated that VoIP telephony's importance has diminished.

Microsoft acquired Skype in 2011 for $8.5 billion, aiming to enhance its real-time communication offerings. While Skype was once integrated into Windows and promoted as an Xbox feature, user growth has stagnated. Microsoft now prioritizes Microsoft Teams for consumer use.