Microsoft Pulls the Plug on Skype

AI written, human edited. 

In a recent episode of Windows Weekly, hosts Leo Laporte, Paul Thurrott, and Richard Campbell discussed Microsoft's announcement that it will shut down Skype in May 2025, marking the end of a communication platform that has been part of the tech landscape for two decades.

Paul Thurrott, who recently wrote a comprehensive history of Skype, noted that this shutdown shouldn't come as a surprise since Microsoft has been signaling this transition for about three years. The hosts reflected on how Skype's demise was somewhat accelerated by unfortunate timing - when the pandemic hit, Microsoft was already focused on Teams as their primary communication platform, leaving Skype neglected just as video conferencing became essential.

"There was a bit of bad timing when the pandemic happened for all of us, but for Skype in particular, because Microsoft was all hot and heavy on Teams," Thurrott explained. While Microsoft made only "a couple of passing moves" regarding free usage during the pandemic, Zoom quickly capitalized on the opportunity and "ran away with" the market for personal and small business video conferencing.

The conversation took a fascinating turn into Skype's technical underpinnings. The hosts discussed how the original Skype client was written in Delphi and used a peer-to-peer network architecture. Richard Campbell pointed out that Skype was created by the same team behind Kazaa, the file-sharing service, and utilized similar peer-to-peer technology.

Leo Laporte recalled, "That's what Microsoft killed when they bought it, and that was when it started to go downhill." The transition from a peer-to-peer architecture to Microsoft's client-server approach fundamentally changed how Skype operated.

Campbell added that phones created another technical challenge: "You can't peer-to-peer to a phone," which necessitated infrastructure changes as mobile became increasingly important.

One of the most interesting aspects of the discussion was Skype's impact on broadcasting. Laporte highlighted that Skype's superior codec was the primary reason they used it for their shows: "It was the best codec... it would use as much bandwidth as you had." Unlike Zoom, which tops out at a few megabits per second, Skype would utilize up to 20 megabits if available, resulting in significantly better quality.

The hosts reminisced about the creative solutions they developed to use Skype for their early shows. Laporte described what they called "Skypasaurus" - a system of multiple Mac minis, each running a separate Skype instance for each caller, all combined in a mixer.

Thurrott reflected on Microsoft's controversial acquisition of Skype for $8.5 billion in cash in 2011, which was seen as greatly overvalued at the time. Campbell suggested that then-CEO Steve Ballmer might have been motivated to make a high-profile acquisition after failing to acquire Yahoo. Despite criticism of the purchase price, Thurrott noted that Skype remains Microsoft's fourth-largest acquisition ever, ranking above GitHub and Nokia, demonstrating its strategic importance to the company.

The hosts identified the rise of mobile messaging as a key factor in Skype's decline. Campbell pointed out that WhatsApp's phone-number-centric approach created an immediate advantage: "Your graph built itself," making it easier for users to find and connect with contacts.

Thurrott observed that WhatsApp and other mobile-first messaging platforms addressed use cases that Skype, with its desktop heritage, struggled to adapt to. "WhatsApp to this day - calling it mobile focused or phone focused is a gross understatement. Have you ever tried to use WhatsApp on your PC? It's a nightmare."

What's Next for Users?

As for Skype users seeking alternatives, the hosts struggled to identify perfect replacements, particularly for those who rely on Skype's ability to call regular phone numbers. Paul suggested that for individual users, the consumer version of Teams that comes with Windows 11 is "pretty damn good," though it lacks the ability to call landlines like Skype did.

Leo noted that globally, most people have moved to platforms like WhatsApp, Facebook Messenger, Signal, or iMessage, with WhatsApp dominating in many countries outside the US. The hosts lamented the fragmentation in the US messaging landscape, joking about the divide between "blue bubbles" (iMessage) and "green bubbles" (SMS/RCS) on iPhones.

The End of an Era

Throughout the discussion, there was a sense of nostalgia mixed with the recognition that Skype's time had passed. As Leo Laporte put it, "This network wouldn't exist without Skype. Paul, you and I, for years, that's what we used."

For tech enthusiasts who have witnessed the evolution of communication platforms over the past two decades, Skype's shutdown represents more than just another product being discontinued - it's the end of an era that helped shape how we connect in the digital age!

To hear the complete conversation about Skype's history, technical evolution, and legacy - plus discussions on Windows 11 developments, Microsoft Dragon Copilot, and more tech news - check out the full episode of Windows Weekly wherever you get your podcasts.