Long before Zoom meetings, WhatsApp calls, and Google Hangouts, there was Skype – a free platform allowing people across the globe to hear and see each other with just a computer and an internet connection. After over two decades, Skype will officially go silent today.
Origin Of Skype
Launched in 2003 by Skype Technologies in Luxembourg, Skype was among the earliest mainstream applications to leverage Voice over Internet Protocol (VoIP). When international calls cost a fortune, Skype offered free computer-to-computer calls and cheap rates for calling landlines and mobiles. It didn’t take long for it to become a household name. “Skype me” even became part of everyday language, much like “Google it.”
By 2008, the platform had over 400 million registered users. It was so influential that it caught the attention of tech giants. eBay acquired it in 2005 for $2.5 billion but later sold it. Eventually, in 2011, Microsoft bought it for $8.5 billion.
Fall Of Skype
Microsoft integrated the platform across Windows PCs, smartphones, and even Xbox consoles. The aim was to reach 1 billion daily users, as then-CEO Tony Bates famously declared. But it tumbled. Frequent interface changes and bloated updates made it clunky. It became more frustrating to use.
Competition surged. WhatsApp, Facebook Messenger, Apple FaceTime, and newer apps like Signal all began offering free P2P (peer-to-peer) calls. In the business world, Slack and Microsoft’s very own Teams came out as convenient communication tools. Skype’s once-loyal base began migrating elsewhere.
Then Came The Pandemic
The COVID-19 pandemic in 2020, which forced the world indoors and online, should have been Skype’s moment to shine. But instead of leading the virtual meeting revolution, it was Zoom that took over. Zoom’s ease won users over, while Skype continued to struggle with glitches and complicated interfaces.
Seeing this, Microsoft invested its energy into Teams. As Teams took off, Skype was forgotten. Even the brief uptick in users during the early pandemic wasn’t enough to save it.
Why Microsoft Is Pulling The Plug
Microsoft wants to focus fully on Teams, the preferred platform for enterprise users. The only part of Skype that will remain is Skype for Business, a feature already tied closely to the Teams ecosystem.
In 2025, Skype dwindled to about 23 million monthly users, down from its 150 million in 2011, and far from the 400 million registered users it once claimed.