Microsoft has officially announced that it will be shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken over the landscape of voice over IP (VoIP) communication, pushing traditional direct calls to cellphones via services like Skype into the annals of history.

According to The Verge, existing Skype users can seamlessly transition to Microsoft Teams by logging into the app with their current Skype credentials, where they will find all their previous content such as message history and contacts readily available. However, Microsoft plans to gradually eliminate support for domestic and international calls.

For those who wish to preserve their Skype data, including photos and conversation histories, Microsoft has developed a tool to assist users in exporting their information, especially for those not interested in switching to Teams. Users have a 60-day window to make their decision, as Skype will go offline starting May 5. Microsoft has assured that it will honor existing Skype credits, though new customers will no longer have access to paid Skype features that allow for international and domestic calls.

The primary feature lost with Skype's shutdown is the ability to make calls to cellphones. In a statement to The Verge, Microsoft's vice president of product, Amit Fulay, explained that while telephony functionality was once a valuable aspect of Skype, its relevance has diminished. "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 noted. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion back in 2011, with the intention of enhancing its focus on real-time video and voice communications and tapping into new market opportunities among Skype’s 160-plus million active users at the time. Skype once played a pivotal role across Windows devices and was even promoted as a key feature for Xbox consoles. However, Microsoft acknowledges that the Skype user base has stagnated in recent years, leading to the company's shift in focus toward Microsoft Teams for consumer use.