Microsoft has officially announced that it will shut down Skype in May, replacing it with a free version of Microsoft Teams. This decision comes amidst a landscape where VoIP platforms like WhatsApp, Zoom, FaceTime, and Messenger have become the go-to choices for communication, pushing traditional cellphone calls via Skype into obsolescence.

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

For those not interested in switching to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to retain their chat records. Users have until May 5 to make their decision, as Skype will go offline on that date. Microsoft assures that existing Skype credits will be honored, 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. Amit Fulay, Microsoft's vice president of product, 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 stagnated in recent years, shifting their focus to Microsoft Teams for consumer use.