Microsoft has announced its decision to discontinue Skype in May, opting instead to introduce a free version of Microsoft Teams to its users. This move comes as voice over IP (VoIP) services like WhatsApp, Zoom, FaceTime, and Messenger have increasingly dominated the market, relegating traditional direct calls to cellphones, once a staple of Skype, to the annals of history.

According to The Verge, existing Skype users will have the convenience of transitioning to Microsoft Teams by simply logging in with their current Skype credentials. This seamless shift will allow them to access their message history, contacts, and other data without the need to set up a new account. However, Microsoft will gradually eliminate the support for making domestic or international calls.

Skype users who prefer not to switch to Teams have the option to export their Skype data, including photos and conversation histories. Microsoft has developed a tool specifically for this purpose, enabling users to view their Skype chat history even if they choose not to migrate to Teams.

The shutdown of Skype is set for May 5, giving users a 60-day window to make their decision. Microsoft assures that existing Skype credits will be honored, but new customers will no longer have access to paid Skype features that allow for making or receiving international and domestic calls.

The most significant change with Skype's closure is the loss of the ability to make calls to cellphones. Amit Fulay, Microsoft's vice president of product, explained to The Verge that while this feature 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 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 a key feature across Windows devices and was even promoted as a selling point for Xbox consoles. However, Microsoft acknowledges that Skype's user base has stagnated in recent years, prompting the shift towards Microsoft Teams for consumer use.