Tag: Skype

Company Check – Microsoft Exchange & Skype Servers Go Subscription-Only

Posted on by Paul Stradling

Microsoft has officially launched subscription-only versions of its on-premises Exchange Server and Skype for Business Server, thereby ending the era of year-numbered releases and perpetual licences.

A Long-Anticipated Transition Becomes Reality

After months of preparation and close calls with support deadlines, Microsoft has made its Subscription Edition (SE) versions of Exchange Server and Skype for Business Server generally available. These editions replace the traditional 2016 and 2019 versions, which are set to reach the end of extended support on 14 October 2025.

Although Exchange Online and Microsoft Teams remain Microsoft’s strategic focus, the software giant has acknowledged that many organisations still require on-premises options. The Subscription Editions were first introduced to select enterprise customers earlier this year but are now widely available to all qualifying customers.

Microsoft says the SE releases reflect its “commitment to ongoing support for scenarios where on-premises solutions remain critical”, noting that these deployments are often driven by regulatory requirements, data residency needs, or cloud-sceptical policies in sectors such as government, finance, and defence.

What’s Actually Changing?

At a technical level, the initial releases of Exchange Server SE and Skype for Business Server SE are nearly identical to their predecessors. Exchange SE is based on Exchange Server 2019 CU15, while Skype for Business Server SE shares its codebase with Skype for Business Server 2019 CU8HF1. As such, there are no new features, removed components, or major structural changes at this stage.

However, the licensing and servicing models are the parts that have changed fundamentally. For example, both servers are now governed by Microsoft’s Modern Lifecycle Policy, which removes fixed end-of-support dates as long as organisations keep systems updated. This transforms them into evergreen products, with two cumulative updates (CUs) planned per year and additional security patches as needed.

Crucially, Microsoft has dropped perpetual licensing in favour of a subscription-only model. Organisations must now pay regularly to continue using the software legally. Stop paying, and you’re effectively frozen at the last supported version, which is now outside Microsoft’s safety net for patches and support.

Why Now and Why Like This?

The timing of the general availability appears to be closely tied to looming deadlines. Both Exchange Server 2016 and 2019, as well as Skype for Business Server 2015 and 2019, are approaching end-of-support in October 2025. Microsoft had promised a transition plan well before this date, and the SE editions are the fulfilment of that promise, albeit cutting it close.

Another driving force is Microsoft’s long-term strategy to encourage cloud adoption. As Rob Helm, analyst at Directions on Microsoft, put it: “The licence price hikes, the cutoff of old versions, the weak link with new Outlook—they all point to a single message: If you care about Exchange email, get off Exchange Server.”

Yet despite the cloud push, Microsoft has also acknowledged the real-world barriers to migration for many organisations. In a blog post accompanying the release, the company said: “Exchange SE demonstrates our commitment to ongoing support for scenarios where on-premises solutions remain critical.”

This includes hybrid deployments, secure national infrastructures, and regions with inadequate cloud access or stringent legal obligations regarding data locality.

A Smooth but Inevitable Upgrade Path

It seems that Microsoft has gone to some lengths to present the upgrade path as low-risk. For those already running Exchange 2019 CU14 or CU15, moving to SE involves minimal disruption, i.e. no schema changes, no removed features, and no new installation prerequisites. Even licence keys remain unchanged (at least for now).

The same applies to Skype for Business Server, where the SE edition uses an identical build number to CU8HF1, minus a few cosmetic updates and the refreshed licence agreement.

However, organisations sticking with older versions will face a steeper climb. Future SE cumulative updates will introduce breaking changes. Exchange SE CU2, for instance, will block coexistence with legacy 2016 or 2019 servers, effectively forcing full migration. Skype for Business SE updates are expected to do the same.

Changing On-Prem Strategy

For Microsoft, this move is part of a broader shift in its on-prem strategy (the software that runs on a company’s own servers, rather than in the cloud), i.e. fewer fixed-version launches, more ongoing subscriptions, and tighter integration with cloud-based tools. Exchange SE and Skype SE will not see the same innovation curve as Microsoft 365 or Teams, but they offer a lifeline for organisations that cannot or will not go all-in on the cloud.

From a competitive standpoint, this opens up opportunities for rivals such as Zoho, Open-Xchange, and Proton, particularly in markets concerned about data sovereignty or vendor lock-in. Microsoft’s insistence on subscriptions may also play into the hands of open-source email and UC solutions, especially in price-sensitive or highly regulated environments.

For businesses, particularly UK-based organisations balancing compliance, cost, and control, the release of SE editions raises key strategic questions. For example, should they embrace the evergreen model and continue with Microsoft’s stack, or use the transition as an opportunity to diversify infrastructure or explore alternative platforms?

The Cost of Staying On-Prem

Perhaps the most controversial element of the announcement is pricing. Microsoft confirmed that all standalone on-prem server products, including Exchange SE and Skype SE, are subject to a 10 per cent price increase. Some licence types may even rise by up to 20 per cent, depending on the channel and configuration.

These hikes do not apply to cloud equivalents such as Exchange Online, Microsoft Teams, or SharePoint Online. The implication is that staying on-premises is becoming not just technically more demanding, but also financially more burdensome.

For organisations required to maintain on-prem email or voice systems, there’s little choice. Running unsupported software is not only a security risk but a compliance red flag, particularly under regulations such as the UK GDPR, ISO 27001, and sector-specific frameworks like NHS DSPT or FCA guidelines.

Operational and Cultural Implications

Beyond licensing and compliance, there are also some broader operational implications. For example, Teams responsible for managing Exchange or Skype for Business deployments will need to adapt to faster patch cycles, modernised update tooling, and shorter grace periods for non-compliance. There’s also a risk that core features might stagnate, with most new innovations funnelled to the cloud-only Microsoft 365 environment.

Microsoft has yet to confirm whether Exchange SE or Skype SE will receive any integration with future Copilot features, AI enhancements, or cross-platform sync improvements. As such, businesses relying on SE products may find themselves maintaining legacy tech in an ecosystem that’s moving on without them.

What Does This Mean For Your Business?

The switch to Subscription Editions may be framed as a practical continuity measure, but it also appears to signal a deeper change in how Microsoft intends to manage its remaining on-premises software. For many UK businesses, particularly those in regulated sectors or with hybrid infrastructure needs, SE offers a necessary bridge, but the subscription-only model means that bridge now comes with ongoing costs, tighter servicing rules, and less certainty about long-term feature investment. While Microsoft maintains that on-prem is still supported, the direction of travel looks like being clearly towards the cloud.

This means that organisations that have built operations around Exchange or Skype on-prem will now have to budget not only for higher licence costs but also for the internal work needed to meet Microsoft’s evolving update requirements. That could mean more testing, faster deployment cycles, and additional pressure on IT teams already juggling hybrid or multi-cloud environments. At the same time, those exploring alternatives may face challenges in interoperability, skills, and vendor maturity, making a full departure from Microsoft’s stack a complex decision rather than an easy switch.

For Microsoft, this shift allows continued servicing of legacy platforms without anchoring itself to ageing support timelines or major version overhauls. For competitors, however, it could create space to target niche on-premise or privacy-first customers that may feel increasingly underserved. For the wider industry, including managed service providers and IT resellers, the move may prompt a reassessment of support models, procurement strategies, and cloud migration readiness. Subscription Editions may keep the lights on for on-prem customers, but they also make clear that Microsoft’s long-term bet is firmly on the cloud.

Tech News : Microsoft Kills-Off Skype After 23 Years

Posted on by Paul Stradling

Skype has officially shut down as of 5 May 2025, marking the end of one of the most recognisable names in digital communication after a 23-year run.

A Platform That Defined an Era

Launched in 2003 by a small team of Estonian and Scandinavian developers, Skype quickly became the go-to app for free internet-based voice and video calls. For many, it was the first experience of seeing and hearing someone across the world at the click of a button. By 2010, the platform boasted over 660 million registered users, and its influence was so widespread that “to Skype” became a verb.

Skype was acquired by Microsoft in 2011 for $8.5 billion, and at the time, it was still seen as a powerful alternative to traditional phone services. It was integrated into Xbox, Outlook, and even some TV sets. It offered low-cost international calling, instant messaging, file sharing, and video conferencing, all in one platform.

That’s All Folks

However, from 5 May 2025, Skype is officially no more, and not just the free version. Microsoft has now ended both its free and paid consumer Skype services, with only Skype for Business (a separate enterprise-grade service) continuing (for now).

Why Now, And What Went Wrong?

Although Skype’s decline wasn’t sudden, it was quite sharp. This is really because despite being an early leader in internet calling, Skype failed to adapt to the modern demands of video communication. Also, the arrival of Zoom, Google Meet, FaceTime, and Discord seemed to expose Skype’s ageing infrastructure and increasingly clunky user experience.

The Pandemic Factor

What really sealed Skype’s fate was the shift in user expectations during the pandemic. For example, Zoom’s frictionless interface, combined with aggressive marketing and scalability, allowed it to soar in popularity, hosting 300 million daily meeting participants by 2020.

Invested In Teams Instead

Skype, by contrast, stumbled, and it was Microsoft’s decision to invest heavily in Teams rather than modernise Skype that also played a key role in Skype’s demise. Teams, which began life as a workplace collaboration tool, gained traction rapidly and now offers calling, chat, meetings, calendar, and app integrations. Its ability to scale for up to 10,000 participants made it the preferred platform for businesses and large organisations.

On 28 February 2025, Microsoft officially announced Skype would be retired by 5 May, stating: “We are streamlining our communications tools and prioritising Teams as our unified platform for calls, chat, and collaboration.”

What’s Actually Been Shut Down?

The closure affects all free and paid versions of Skype, except for Skype for Business, which continues for enterprise clients under a different support plan. Skype Credit, Skype Numbers, and new subscriptions were frozen in early April. Existing subscriptions will run until they expire, but no new purchases or renewals are allowed. SMS services, caller ID setup, and Skype Credit gifting have all been disabled.

Users who relied on Skype for calling are being directed to Microsoft Teams Free. This new version allows people to sign in using their Skype credentials, where their chat history and contacts will be automatically transferred. The Teams app includes the Skype Dial Pad, so paid users can continue to make and receive calls (for now).

Skype Data Accessible Until Jan 2026

Microsoft is keen to point out that data from Skype accounts will remain accessible until January 2026, at which point it will be deleted unless users have exported or migrated it to Teams.

What Should Skype Users Do Now?

Former Skype users, therefore, now have two choices, i.e. either migrate to Microsoft Teams Free or export their data and move to a different provider. It should be noted that the transition is relatively smooth and is just a case of users signing into Teams using their Skype login, where they will then find their existing contacts and chats waiting for them. However, not everything makes the move. It seems that private messages, bot conversations, and chats with Teams work or school accounts aren’t carried over.

For users who’d rather part ways with Microsoft altogether, it’s a case of needing to export their Skype data. This involves users logging in via the Skype web portal and requesting their contacts, chat history, and files. Once exported, users can download their data and switch to another provider.

What Are the Best Skype Alternatives Now?

The video calling market has grown considerably since Skype’s heyday, with several viable options now competing for attention. These include:

– Zoom. Still a favourite for businesses and individuals, offering high-quality calls, whiteboarding, and AI summaries. Free tier includes 40-minute meetings; paid plans start at £13/month.

– Google Meet. Integrated with Gmail and Google Calendar, it offers 100-participant meetings on the free plan, with AI tools and livestreaming available on paid tiers.

– Webex. Cisco’s platform includes breakout rooms, polls, and AI assistants, but the free version also has a 40-minute cap.

– Discord. Originally built for gamers, now used by small teams and communities. Unlimited meeting length and screen sharing included, though it caps participants at 25.

– Signal. Encrypted and simple to use for group video calls of up to 50 people. Entirely free.

– Slack Huddles. Great for quick team chats and casual check-ins. Free plan only supports 1:1 calls.

While each offers something Skype didn’t, none have yet fully filled the cultural or emotional space Skype once held.

What’s Changing for Microsoft and the Market?

From Microsoft’s perspective, shutting down Skype is less about losing a legacy product and more about simplifying its platform offering. Teams, now used by more than 320 million people globally, consolidates many of Skype’s core functions and integrates them into a single environment alongside productivity tools.

That said, the move isn’t without its critics. Skype earned its reputation by being lightweight and universally accessible. These are both attributes not always associated with Teams. Also, for individuals and smaller businesses used to Skype’s intuitive interface, the transition may feel like a leap into a more complex, corporate world.

The change also reflects a broader industry trend. Tech giants are increasingly streamlining their digital offerings, partly to improve user experience and partly to cut back on the environmental impact of maintaining sprawling product ecosystems. In Microsoft’s case, retiring Skype may help reduce server loads, lower duplication across services, and focus engineering resources on fewer, more efficient platforms.

For competitors like Zoom and Google, the exit of Skype finally removes a once-major rival from the table, but the growing dominance of Teams, particularly in the workplace, means the battle for users is far from over. With AI, sustainability, and integration now key differentiators, the next few years could see even more dramatic shifts in how we connect online.

What Does This Mean For Your Business?

Skype’s disappearance may come as a surprise to some, but in truth, the writing has been on the wall for years. Its early success was rooted in simplicity, accessibility, and a genuine sense of global connection. However, those very strengths became liabilities in a market that rapidly shifted toward multi-functional, integrated platforms. As for the switch to Teams, it isn’t just a change of software – it’s a shift in mindset, especially for those who valued Skype as a lightweight, personal tool rather than a business suite in disguise.

For UK businesses, on the one hand, smaller firms and sole traders who relied on Skype for informal calls or affordable international communication may now feel pushed into adopting a heavier, more corporate solution. On the other hand, the move to Teams could streamline digital communications and bring them in line with broader productivity tools already in use, such as Office 365 and SharePoint. For larger organisations, especially those managing hybrid or distributed teams, the integration offered by Teams could well prove to be a long-term advantage.

From a market perspective, Skype’s departure may reduce fragmentation but doesn’t lessen competition. The race to provide smarter, leaner, more secure communication tools is still very much on, and with AI-enhanced features now becoming the norm, the tools of tomorrow may look very different again. For Microsoft, consolidating platforms under the Teams umbrella is a clear statement of intent. For rivals, it’s a reminder that dominance is never guaranteed.

Skype’s end, therefore, highlights how fast the digital landscape evolves, and how even the most familiar names can fade if they don’t adapt. On the upside, Skype’s departure clears the way for new tools, new habits, and possibly, better solutions, not just for businesses, but for everyone who relies on connection as a core part of how they work and live.

Tech News : May 2025 : Skype Retiring

Posted on by Paul Stradling

Microsoft has confirmed that it will retire Skype in May 2025, marking the end of an era for the once-revolutionary internet calling service.

Teams Instead

The company plans to shift its focus entirely to Microsoft Teams, which it describes as a modern communication and collaboration platform better suited to today’s needs.

Years of Declining Relevance

The decision to finally phase out Skype comes after years of declining relevance, as competitors like Zoom, WhatsApp, and FaceTime gained popularity and Microsoft’s own Teams platform became the default communication tool for businesses and personal users alike. The move is expected to streamline Microsoft’s communication offerings and consolidate its efforts around a single, more integrated platform.

What Happened To Skype?

Skype was first launched in 2003 and quickly became a household name for voice and video calls over the internet. Microsoft acquired Skype in 2011 for $8.5 billion, integrating it into its product ecosystem, including Xbox and Windows devices. However, despite its early dominance, Skype struggled to adapt to changing user expectations, particularly as mobile-first competitors emerged.

Microsoft Teams was introduced in 2017, initially targeting business users but later expanding to personal communication. The platform experienced explosive growth during the COVID-19 pandemic, as remote work and virtual meetings became the norm. According to Microsoft, Teams’ consumer meeting minutes increased fourfold in just the past two years, highlighting the shift in user behaviour.

Jeff Teper, Microsoft’s President of Collaborative Apps and Platforms, has explained the reasoning behind the transition, saying: “In order to streamline our free consumer communications offerings so we can more easily adapt to customer needs, we will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub.”

What This Means for Skype Users

Skype will remain available until 5 May 2025, giving users time to migrate to Teams or export their data. Microsoft has outlined two primary options for Skype users, which are:

1. Move to Microsoft Teams for free. Skype users can log in to Teams using their existing Skype credentials. All chats and contacts will automatically be transferred, allowing for a seamless transition. Microsoft has assured users that Teams offers many of the same features as Skype, including one-on-one and group calls, messaging, and file sharing, alongside additional capabilities such as calendar management and community-building tools.

2. Export Skype data. For users who do not wish to migrate to Teams, Microsoft is providing an option to export all Skype data, including chat history, contacts, and call logs.

During the transition period, Skype and Teams will remain interoperable, meaning users on one platform will still be able to communicate with those on the other. Microsoft has also promised step-by-step guidance to assist users in making the move.

The End of Skype’s Paid Features

As part of the transition, Microsoft will also discontinue Skype’s paid services. New customers will no longer be able to purchase Skype Credit or subscriptions for international and domestic calls. Existing paid users will be able to use their remaining Skype Credit and subscriptions until their next renewal period. After the shutdown date, Skype’s dial pad will only be available to remaining paid users via the Skype web portal and within Microsoft Teams.

What This Means for Microsoft and Its Competitors

The decision to retire Skype and focus on Teams reflects Microsoft’s strategy to consolidate its communication tools into a single, modernised cloud-based platform. The company is betting on Teams to remain competitive against other video conferencing and messaging services such as Zoom, Slack, and Google Meet.

While Skype had a strong user base in its prime, its influence has waned over the years. For example, a report from 2023 estimated that Skype had around 36 million daily active users, a fraction of the hundreds of millions once recorded in its heyday. In contrast, Microsoft Teams now boasts over 320 million monthly active users, demonstrating its rapid adoption and continued growth.

Microsoft’s move is also likely to put pressure on competitors and by streamlining its offerings, Microsoft can focus on further improving Teams, making it a more attractive alternative to business and personal users alike. The integration of Skype users into Teams could further boost the platform’s adoption, giving Microsoft an edge in the crowded communication software market.

A Nostalgic Farewell

In the early days of internet calling, Skype was nothing short of revolutionary, enabling people to connect with friends and family across the world for free. For many, it was their first experience of video calling, making long-distance relationships and remote work more feasible long before today’s alternatives existed.

In response to the announcement, many long-time users took to social media to share their memories of Skype. For example, one user wrote, “Skype was such an exciting invention at the time—before smartphones and WhatsApp calls. It’s easy to forget how groundbreaking it was.” Another reminisced about using Skype for international calls with family, saying, “Back then, it felt like magic.”

One Year To Prepare for the Transition

Despite its legacy, the writing has been on the wall for Skype for some time. Microsoft’s prioritisation of Teams over the past few years made it clear that Skype’s days were numbered. With the formal retirement date now set, users have just a short while to prepare for the transition to Microsoft’s next-generation communication platform.

What Does This Mean For Your Business?

While nostalgia surrounds its departure, this transition is ultimately a strategic move by Microsoft to consolidate its offerings and focus on the more modern, integrated capabilities of Teams. Given the rapid evolution of communication technology, Skype’s decline was perhaps inevitable, as competitors emerged with mobile-first designs and feature-rich ecosystems that better catered to today’s users.

For UK businesses, this shift highlights the growing importance of streamlined digital collaboration. With Microsoft funnelling its resources into Teams, organisations will need to ensure they are prepared for the change, particularly those still relying on Skype for day-to-day operations. The move presents both opportunities and challenges—on one hand, Teams offers a more sophisticated suite of tools designed to enhance productivity; on the other, businesses must manage the transition effectively to avoid disruption. Ensuring employees are comfortable with Teams and its expanded capabilities will be key to making the most of Microsoft’s new direction.

By consolidating its user base under a single platform, Microsoft strengthens Teams’ position against rivals such as Zoom, Google Meet, and Slack. This will likely drive further innovation, benefitting users who demand more seamless, feature-rich solutions for remote and hybrid working.

While Skype may soon be a relic of the past, its influence on digital communication paved the way for the tools we now take for granted, and its legacy will endure in the very platforms that have replaced it. As Microsoft moves forward with Teams, users (both personal and professional) must adapt to the changing landscape.