“After two decades and $8.5 billion later, Skype is logging off for good — as Microsoft fully shifts gears to Teams.”
That’s what I said in a pre-recorded interview on BBC Breakfast earlier this week, as we discussed Microsoft’s decision to officially retire Skype on May 5, 2025.
For many people, this marks the end of an era — and for others, like massive geeks and people whose job it is to think about the future of work and technology, it raises deeper questions about how platforms evolve and why even the most familiar names in tech don’t last forever.
🕰️ A Giant of Its Time — Now Stepping Aside
Back in 2011, Microsoft spent $8.5 billion to buy Skype — its largest acquisition ever at the time. With over 160 million active users and a strong international presence, Skype was seen as a strategic goldmine in the communication space. Microsoft beat both Facebook and Google to secure the deal.
For a while, the move paid off. Skype was integrated into Windows devices, Office products, and even Xbox. It replaced Windows Live Messenger. Usage spiked. But as the years went on, Skype didn’t evolve fast enough. And then, in 2016, Microsoft Teams launched — and everything started to shift.
📉 What Went Wrong?
The issues weren’t hidden:
- Skype’s peer-to-peer architecture didn’t translate well to mobile and cloud-first environments.
- Innovation slowed.
- Competition from Zoom, WhatsApp, and Google Meet accelerated.
- Internally, Microsoft shifted investment away from Skype in favour of Teams.
From a strategic lens, Skype became redundant — not because it failed, but because its successor simply did the job better. Or as I alluded to in my BBC Radio interview - perhaps Microsoft wanted to have it disappear…
📈 Teams Is Now the Star Player
Fast forward to 2025: Microsoft Teams now boasts over 320 million monthly users across the globe. It's used in schools, corporations, and startups. Teams integrates meetings, calendar, chat, file sharing, and AI-powered tools — all in one space. That’s the kind of integration today’s work culture demands.
And crucially, Skype users can switch to Teams using the same login, with contacts and chats migrating automatically. Microsoft made the exit as seamless as possible.
So…. was buying it - all those years ago - a strategic error?
The future of work, being what it is, seems to say NO.
🧠 What This Means for the Future of Work
We’re not just watching one product shut down. We’re seeing how digital infrastructure gets rebuilt in real time. Skype was a stepping stone to a more integrated, cloud-first communication culture.
In my pre record, I said something like:
“The way we work is changing faster than the tools we use to manage that change.”
And it’s true. Hybrid work, remote teams, and AI collaboration have reshaped the expectations. People need smarter tools that do more than just connect them. They need platforms that enhance productivity, automate where possible, and give them more control over when and how they work.
That’s exactly what I explore in my book
Available at https://futureofwork.gumroad.com
And in my AI-focused marketing and future-of-work workshops via www.aimarketingcourse.co.uk
And of course, with my keynotes and trainings on AI, technology and the future of work as Dan Sodergren. None of which are on Skype... Even when done remotely :)
In fact, ironically the only people I knew that used Skype were the BBC.
👋 Saying Goodbye to a Digital Pioneer
For a lot of people, Skype was the first time they made a video call to someone in another country. It was personal. It was global. It was ahead of its time — until the time changed.
Microsoft didn’t fail Skype. They outgrew it. And they consumed it.
And that, in the world of tech, is often how progress happens.
Whether or not it should - that’s a different conversation.
You can follow me on @dansodergren
Or connect via www.greatmarketingworks.co.uk for AI training
if your team wants to stay ahead of the curve as the digital workplace continues to shift.
About The Author:
Keynote speaker, professional speaker, Ted X talker, serial tech startup founder, ex marketing agency owner, digital trainer, and now author and media spokesperson Dan Sodergren’s main area of interest is the future of work, technology, data and AI In his spare time, as well as being a dad, which comes first, Dan is a digital marketing and technology (and now AI) expert for TV shows and the BBC and countless radio shows.
Occasionally donning the cape of consumer champion on shows like BBC WatchDog, the One Show and RipOffBritain and being a marketing tech specialist for SuperShoppers and RealFakeAndUnknown and BBC Breakfast.
He is also a host and guest on podcasts and webinars speaking as a tech futurist. And a remote reporter / content creator for tech companies at tech events and shows.
His main interest is in the future. Be that the future of marketing, or the future or work or how AI and technology will change the world for the better as part of the #FifthIndustrialRevolution.
Find out more about him here bit.ly/DanSodergren
📚 Sources for Further Verification (May 2025)
- The Verge – “Microsoft to shut down Skype in May 2025”
https://www.theverge.com - TechCrunch – “Skype is officially going offline – Here’s what to know”
https://techcrunch.com - Microsoft Official Blog – “Preparing for Skype’s retirement”
https://blogs.microsoft.com - BBC Technology – “Skype calls time as Teams takes over”
https://bbc.com/news/technology - CNBC – “Why Microsoft pulled the plug on Skype after $8.5 billion bet”
https://www.cnbc.com