Microsoft has announced that it will shut down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as platforms like WhatsApp, Zoom, FaceTime, and Messenger have taken over the VoIP communication space, relegating traditional cellphone calls via services like Skype to the past.

According to The Verge, existing Skype users will be able to transition seamlessly to Microsoft Teams, where they can access their message history and contacts without needing to create a new account. However, Microsoft will discontinue support for domestic and international calls through Skype.

Users who wish to retain their Skype data, such as photos and conversation histories, can export this information. Microsoft has provided a tool to assist those who do not want to switch to Teams in viewing their Skype chat history.

The deadline for making a decision is approaching, as Skype will cease operations on May 5. Microsoft will continue to honor existing Skype credits but will no longer offer new customers the paid Skype features that enable international and domestic calls.

The primary feature lost with Skype's shutdown is the ability to make calls to cellphones. Microsoft's vice president of product, Amit Fulay, told The Verge that while telephony functionality was valuable during Skype's peak popularity, it is less relevant today. "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 explained. "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, with the goal of enhancing its focus on real-time video and voice communications and tapping into Skype’s 160-plus million active users at the time. Skype once played a significant role in Windows devices and was even highlighted as a key feature for Xbox consoles. However, Microsoft acknowledges that Skype's user base has not grown in recent years, prompting a shift in focus towards Microsoft Teams for consumer use.