Microsoft has officially announced that it will be shutting down Skype in May, replacing it with a free version of Microsoft Teams. This decision comes as other platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken the lead in voice over IP (VoIP) communication, pushing traditional cellphone calls to the sidelines.

According to The Verge, existing Skype users will be able to seamlessly transition to Microsoft Teams, where they can access all their previous content, including message history and contacts, without needing to create a new account. However, Microsoft plans to discontinue support for domestic and international calls.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to retain their chat history. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft will continue to honor existing Skype credits, but new customers will no longer have access to paid Skype features that enable international and domestic calls.

The primary feature lost with Skype's shutdown is the ability to make calls to cellphones. Microsoft's vice president of product, Amit Fulay, explained to The Verge that while telephony functionality was valuable during Skype's peak, it has become less relevant. "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," Fulay said. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its focus on real-time video and voice communications and tap into Skype's 160-plus million active users. Skype once played a significant role across Windows devices and was even highlighted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's userbase has remained stagnant in recent years, leading to a shift in focus towards Microsoft Teams for consumer use.