Skype was a telecommunications application that allowed users to make voice and video calls, send instant messages, and share files over the internet.
It was launched in 2003 by Niklas Zennström and Janus Friis, with software developed by Estonian engineers.
Key features included:
- Voice and video calling (one-on-one or group).
- Instant messaging.
- Screen sharing.
- VoIP (Voice over Internet Protocol) technology to bypass traditional phone networks.
- SkypeOut for calling landlines and mobile numbers for a fee.
Historical Highlights:
- 2005: Acquired by eBay for $2.6 billion.
- 2011: Acquired by Microsoft for $8.5 billion.
- Microsoft later integrated Skype with its other services and eventually replaced older communication tools like MSN Messenger and, to an extent, parts of Lync/Skype for Business.
- In recent years, Microsoft Teams has largely supplanted Skype in enterprise settings.
How does Skype compare to modern tools like Zoom or Teams?
Here’s a comparison of Skype vs modern tools like Zoom and Microsoft Teams, focusing on features, usage, and positioning:
| Feature/Aspect | Skype | Zoom | Microsoft Teams |
| Primary Use Case | Personal and small business comms | Video conferencing & webinars | Team collaboration and enterprise comms |
| User Base | Individual consumers, small teams | Businesses, educators, consumers | Enterprises and Microsoft 365 users |
| Video Conferencing | Up to 100 people | Up to 1,000+ (depends on plan) | Up to 1,000 in a meeting; 20,000 in webinar |
| Messaging | Yes (basic) | Yes (basic chat during calls) | Full-featured persistent chat |
| Screen Sharing | Yes | Yes | Yes |
| File Sharing | Yes (limited) | Yes (in meetings) | Yes (deep SharePoint and OneDrive support) |
| Integration | Limited | Moderate (with add-ons) | Deep Microsoft 365 integration |
| Security/Compliance | Basic encryption | Strong (E2E for some features) | Enterprise-grade (full compliance options) |
| Cloud Recording | Limited | Yes | Yes |
| Extensibility (APIs) | Minimal | Available | Extensive (Power Platform, Graph API) |
| Evolution | Declining since Teams’ rise | Growing in business/education | Dominant in Microsoft environments |
Summary:
- Skype was pioneering but is now largely obsolete in the enterprise space.
- Zoom excels in video-first scenarios like webinars and large meetings.
- Microsoft Teams is a full collaboration hub, combining chat, meetings, file sharing, and app integrations — especially powerful for organizations using Microsoft 365.
Why was Skype discontinued?
Skype was not officially “discontinued” for all users, but its role and prominence were greatly reduced — especially in business and enterprise — due to several key reasons:
1. Shift to Microsoft Teams
- After acquiring Skype in 2011, Microsoft began integrating its features into its ecosystem.
- In 2017, Microsoft announced it would replace Skype for Business with Microsoft Teams as the primary communication tool for Office 365 users.
- Teams offered richer collaboration tools: persistent chat, file sharing, app integration, and superior meeting capabilities.
2. Technological Limitations
- Skype’s peer-to-peer architecture, which was innovative in the early 2000s, became a liability for scalability, performance, and security in modern cloud environments.
- Microsoft moved Skype to the cloud (Azure), but it couldn’t compete with more scalable platforms like Zoom or Teams.
3. Poor User Experience
- Over time, Skype’s interface became cluttered, inconsistent, and laggy.
- Updates often broke features or confused long-time users.
4. Competition
- Zoom, WhatsApp, Slack, Google Meet, and FaceTime offered easier or more specialized solutions.
- Skype lost both personal and professional market share.
5. COVID-19 Acceleration
- During the pandemic, Teams and Zoom surged, while Skype largely missed the moment.
- Microsoft actively pushed Teams instead of reviving Skype.
Current Status:
- Skype is still available for download and casual use (as of 2025).
- Skype for Business Online was officially retired on July 31, 2021.
- Microsoft is no longer investing significantly in Skype’s development.