Microsoft has officially announced the closure of Skype in May, opting to transition its user base to a free version of Microsoft Teams. This decision comes as VoIP services like WhatsApp, Zoom, FaceTime, and Messenger have surged in popularity, overshadowing traditional direct calls to cellphones that Skype once specialized in.

According to The Verge, existing Skype users will find a seamless transition to Microsoft Teams, where they can log in and access all their existing content, including message history and contacts, without the need to set up a new account. However, Microsoft plans to discontinue support for both domestic and international calls.

For those not wishing to switch to Teams, Microsoft offers a tool to export Skype data, such as photos and conversation history, allowing users to retain their 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 still be honored, but new customers will no longer have access to Skype's paid features for making or receiving calls.

The shutdown of Skype primarily affects the ability to make calls to cellphones. Microsoft's Amit Fulay, vice president of product, explained to The Verge that while telephony functionality was once a key feature 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 stated. "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 then 160 million active users. Skype was once integral to Windows devices and even promoted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's user base has stagnated in recent years, shifting its focus to Microsoft Teams for consumer use.