Microsoft to Retire Skype in May – Here’s What it Means for Businesses

Microsoft is set to retire Skype for consumers on May 5, 2025. To ensure a smooth transition, the company is urging users to migrate to the free version of Microsoft Teams, its modern alternative for messaging and calls.

Microsoft says that existing Skype users will be able to log into Microsoft Teams with their Skype credentials. Users will notice that their contacts, message history, and call logs will appear automatically in the Teams app.

“The way we communicate has evolved significantly over the years,” said Jeff Teper, President for Microsoft 365 Collaborative Apps + Platforms. “From instant messaging to video calls, technology has continuously transformed how we connect with each other. In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams, our modern communications and collaboration hub.”

Why Microsoft is Phasing Out Skype?

Skype was originally launched in beta in late 2003, and the app quickly gained popularity due to its free voice calls. It was acquired by eBay in 2005 and then by Microsoft for $8.5 billion in 2011. Despite undergoing multiple redesigns, Skype failed to compete with Microsoft Teams and Zoom, particularly during the pandemic.

Microsoft Teams has seen significant growth in its user base, with many organizations and individuals already adopting it as their primary communication tool. This makes it more practical for Microsoft to invest in Teams rather than maintaining two separate platforms.

End of Skype subscriptions

In December 2024, Microsoft announced that Skype users won’t be able to add credit to their accounts or purchase Skype phone numbers. This change was aimed at encouraging users to switch to monthly subscriptions and Skype-to-phone plans instead. Microsoft says that existing customers will still be able to access premium Skype features until the end of their renewal period.

However, Microsoft won’t be offering new customers access to Skype subscriptions anymore. The company says that the Skype Dial Pad will remain available via the Skype web portal and in Microsoft Teams indefinitely for users who still have credit in their accounts.

Lastly, existing Skype users who choose not to transition to Microsoft Teams will have the option to export their data (contacts, call history, and chats). During the transition period, Microsoft will maintain interoperability, allowing Skype and Microsoft Teams users to chat and call each other until Skype is fully retired. Skype will retain data for users who do not take any action by May 5 until the end of this year.

Future of Skype for Business Server

It’s important to note that Microsoft’s decision to deprecate Skype does not impact the on-premises versions, such as Skype for Business Server 2015 and 2019. The company plans to release Skype for Business Server Subscription Edition (SE) later this year.

Meanwhile, Skype for Business Server 2015 and 2019 will both reach their end of support on October 14, 2025. After this date, Microsoft will no longer provide technical support, bug fixes, or security updates for these products.