You can now take your TEAMS chats to the next level by inviting Microsoft Copilot to the chat. You now have all the power of the AI at your fingertips, without having to leave a TEAMS chat and you can collaborate like never before … fascinating stuff !
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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.
Microsoft 365 is packed with numerous apps designed to save time, boost productivity and help you work smarter. Here’s a closer look at some essential (yet often under-utilised) applications that can make a significant difference in your daily workflow.
Planner
This app is a task management tool that helps teams create detailed plans, assign tasks, and track progress using visual boards and charts. Planner integrates seamlessly with other Microsoft 365 apps like Teams and Outlook, allowing for efficient task management and collaboration across different platforms.
Whiteboard
Whiteboard is a digital canvas that allows teams to brainstorm, plan, and create together in real-time, no matter where they are located. Whiteboard supports collaboration with tools for drawing, note-taking, and diagramming, enhancing team creativity and productivity
Bookings
This is a great scheduling tool that simplifies managing appointments with customers and clients. Bookings provides a web-based booking calendar that integrates with Outlook to automatically send confirmations and reminders, helping to reduce no-shows and ensuring smooth appointment scheduling. It’s Microsoft’s answer to the popular ‘Calendly’ software.
Microsoft Loop
This co-creation tool brings together components like tasks, notes, and data from various Microsoft 365 apps into collaborative workspaces. Loop helps teams stay organised and work together efficiently by consolidating all the necessary elements of a project in one place.
Power Automate
If you’re looking for an automation tool that helps save time on repetitive tasks like data entry, email notifications, and file management, Power Automate could be for you. It essentially connects your apps and services to create automated workflows. Power Automate supports a wide range of triggers and actions, making it highly customisable for various business needs.
Power Apps
If you need to build custom apps but have a minimal knowledge of coding, Power Apps may be just what you need. Power Apps enables you to create apps that can interact with data stored in various Microsoft 365 apps like SharePoint, Dynamics 365, and SQL Server, thereby providing a flexible and scalable solution for unique business processes.
Microsoft Viva
Viva could broadly be described as an ‘employee experience platform’ that brings together communications, knowledge, learning, resources, and insights to support your workforce. Viva aims to improve employee engagement and well-being by integrating with existing Microsoft 365 apps and services.
SharePoint
Although you may have heard the name SharePoint, if you haven’t tried it, you may not realise how versatile and helpful SharePoint can be. This is a platform for creating websites, sharing documents, and collaborating across teams and departments. SharePoint allows for the creation of custom intranet sites and document libraries, which can help streamline information sharing and document management within an organisation. Using SharePoint can therefore help enhance efficiency, reduce duplication of effort, plus ensure that all team members have access to the most up-to-date information, thereby improving overall productivity and decision-making.
Microsoft Forms
A tool for creating surveys, quizzes, and polls, Forms collects real-time responses and provides analytics to help you make data-driven decisions, making it easy to gather feedback, conduct research, or assess employee or customer satisfaction.
Yammer
Although now quite an old app (introduced in 2008 and acquired by Microsoft in June 2012), Yammer still reportedly has tens of millions of monthly active users worldwide. This enterprise social networking service facilitates communication and collaboration within your organisation. Yammer enables employees to create groups, share updates, and engage in discussions, fostering a more connected and informed workplace.
Sway
This digital storytelling app enables you to create interactive reports, presentations, and newsletters. One big advantage of Sway is that it offers easy-to-use templates and design tools that help users create visually appealing content without the need for advanced design skills, making it ideal for sharing information in an engaging way.
Stream
Introduced to Microsoft 365 back in 2017, Stream is a video service for businesses to securely upload, share, and manage videos. Stream integrates with other Microsoft 365 apps, enabling features like automatic transcription, video search, and embedding videos in Teams and SharePoint, thereby enhancing the way teams can use video for communication and training.
To Do
As the name suggests, this task-management app allows you to plan your day and keep track of your to-do lists. To Do integrates with Outlook tasks, thereby enabling you to manage all your tasks in one place (which is very convenient) and set reminders and due dates to stay on top of their responsibilities.
Clarity
This is a web analytics app that provides insights into user behaviour on your website. For example, Clarity offers heatmaps, session recordings, and other analytical tools to help improve user experience and engagement, thereby making data-driven decisions easier and more effective.
Microsoft Lists
If you need to track information and stay on top of organising work, Lists does just that. Lists helps you to create, share, and track lists with anyone, using templates to get started quickly and customising views and formats to fit the team’s specific needs. It also integrates with Teams for seamless collaboration.
Clipchamp
This video editing tool enables you to create and edit professional-looking videos with relative ease. Clipchamp offers a range of templates, effects, and editing tools that make video production accessible even to those without extensive video editing experience.
Intune
Intune is a cloud-based service focusing on mobile device management (MDM) and mobile application management (MAM). This app can help secure your organisation’s data by managing how devices access and share information, ensuring compliance with security policies.
Microsoft Entra ID
If you need to protect sensitive information and ensure that only authorised users can access critical data and systems, then Microsoft Entra ID identity and access management service can help. Microsoft Entra ID enhances security by managing user identities and access to resources across your enterprise.
How Do You Find and Access Microsoft 365 Apps?
Accessing the wide variety of apps available in Microsoft 365 is designed to be simple and convenient. The Microsoft 365 app launcher, a grid icon in the top-left corner of the Microsoft365.com page, is your primary gateway. Clicking this icon reveals a menu of all your available apps. If you don’t see the one you need, clicking “All apps” provides a comprehensive list. The launcher also tracks your most recently used apps for quick access.
Many Microsoft 365 apps can also be installed directly on your desktop or mobile devices, ensuring you can use them offline. For desktop applications, visit the Microsoft 365 downloads page to download apps like Word, Excel, and PowerPoint. Mobile users can find these apps in the App Store or Google Play Store, making it easy to access tools like Microsoft Outlook and OneDrive on the go.
Microsoft Teams integrates several Microsoft 365 apps within its interface, enhancing collaboration. By signing into Teams, you can browse and install apps like Planner and Lists from the “Apps” section, allowing seamless use within your team channels and chats.
Also, most Microsoft 365 apps have web versions accessible from any browser, eliminating the need for downloads. Simply go to Microsoft365.com and select the app you need from the homepage or app launcher. These web apps offer functionalities similar to their desktop counterparts, ensuring a smooth experience across devices.
For added efficiency, bookmark the Microsoft 365 login page and frequently used app URLs. Pinning your most-used apps in the launcher also ensures easy access. This way you can maximise productivity with the comprehensive suite of Microsoft 365 apps, whether in the office, at home, or on the go.
What Does This Mean For Your Business?
The extensive array of apps offered by Microsoft 365 provides many advantages for businesses and individuals. By integrating these apps into daily operations, businesses can significantly enhance their efficiency, productivity, and overall workflow. Applications like Planner and To Do streamline task management and ensure that teams stay on track, while Power Automate eliminates repetitive tasks through automation, allowing employees to focus on more strategic activities.
For businesses, the use of tools such as SharePoint and Microsoft Viva can improve collaboration and information sharing across departments, fostering a more connected and informed workplace. SharePoint’s custom intranet sites and document libraries make it easier to manage and disseminate information, while Viva supports employee engagement and well-being by integrating communications, knowledge, and learning resources.
From a competitive standpoint, Microsoft’s comprehensive suite of productivity apps positions it strongly against competitors and have helped make it the most popular suite of applications for business, boasting some 345 million users worldwide. The seamless integration of these apps within the Microsoft ecosystem provides a unified experience that can be difficult for competitors to match. This integration is further enhanced by Microsoft Teams, which acts as a central hub for communication and collaboration, incorporating apps like Planner, Lists, and Whiteboard directly into its interface.
Since the arrival of AI and its widescale incorporation into many Microsoft 365 apps, this has provided many extra benefits for businesses. AI-driven features in apps like Microsoft Loop and Clarity, for example, provide deeper insights and facilitate smarter decision-making. Clarity’s analytical tools are able to offer potentially valuable insights into user behaviour, allowing businesses to optimise their websites and improve user engagement. AI in Power Automate and other apps also helps create more sophisticated workflows that adapt to the needs of the business, further boosting productivity.
Looking ahead, the integration of AI will continue to evolve, providing even more powerful tools to enhance business operations. Microsoft’s ongoing investment in AI technologies, thanks to very close relationship with OpenAI, should mean that its apps will remain at the forefront of innovation, thereby helping businesses to stay competitive and efficient in a rapidly changing digital landscape.
Microsoft’s announcement that it will sell its chat and video app Teams separately from its Office product globally is likely to cause considerable headaches for IT departments and managed service providers.
Why Unbundle?
Teams is to be unbundled and sold separately globally (it’s been unbundled in the EU since last October) in response to an antitrust lawsuit and to avert the possible associated fine.
An antitrust lawsuit against Microsoft over its bundling of Teams with its Office suite in the EU was initiated based on a complaint from competitor Slack Technologies in 2020. Teams was originally bundled with Office 365 as a replacement for Skype back in 2017 and became popular during the pandemic.
However, rival Slack (now owned by Salesforce) alleged that Microsoft was illegally tying its Teams application to its dominant Office productivity suites, thereby leveraging its market dominance to stifle competition unfairly.
The European Commission said at the time: “Microsoft may grant Teams a distribution advantage by not giving customers the choice on whether or not to include access to that product when they subscribe to their productivity suites.”
This led to The European Commission investigating Microsoft over its amalgamation of Office and Teams since 2020 and then to Microsoft separating Teams for Office 365 In October last year in the European Economic Area and Switzerland.
Pressure
Continued pressure from the regulator and the desire to (understandably) avoid a fine that could potentially be up to 10 per cent of its global revenue has now led Microsoft to announce that it will now be unbundling Teams and selling it separately, globally.
How Much?
Starting from April 1, customers can either continue with their current licensing deal, renew, update or switch to the new offers. Unbundled Teams will be available for new customers as a standalone app for $5.25, whereas Office packages without Teams will range between $7.75 and $54.75.
It’s worth noting that these figures may vary by country and currency and Microsoft hasn’t yet disclosed prices for current packaged products.
Trouble For MSPs
Unfortunately, although the move may be good news for Microsoft’s rivals, it’s not a welcome announcement from the perspective of the many managed service providers (MSPs) who are resellers of Microsoft’s packages and products. Indeed, for MSPs it is likely to mean headaches in several key areas, such as:
– Service delivery and integration. Unbundling may disrupt how MSPs bundle services, demanding changes in delivery models due to the deep integration of Teams with Office applications.
– Billing and subscription management Separate billing for Teams and Office could complicate financial operations, requiring more administrative effort to manage distinct subscriptions and compliance.
– Training and support. A standalone Teams setup might increase support queries and necessitate updated training materials, placing additional demands on MSP resources.
– Client satisfaction and retention. Crucially, the change could confuse clients who are accustomed to (and expect) the convenience of integrated packages, potentially affecting their satisfaction and loyalty (during the adjustment phase), lowering the barriers to exit from their supplier.
– Market competition. Facing competitors offering more cohesive solutions, MSPs may need to reevaluate their offerings and pricing to stay competitive.
What Does This Mean For Your Business?
This is not an unexpected development, given Microsoft’s unbundling of Teams in the EU last October, continued regulator and competitor pressure, and the threat of a massive fine. It’s good news for Microsoft’s competitors like Slack, however, for Microsoft, some say that even this concession and change in its product strategy may not be enough to avoid a fine.
The complications and unsettling effects it could have on UK business customers could also cause some considerable problems for the UK’s many MSPs. For example, they may find themselves having to navigate a more complex service landscape, facing challenges in service integration, billing management, and customer support. This could mean that MSPs will have to now monitor the impacts carefully and adjust their strategies to minimise the likely negative effects on their business and client relationships.
This could mean having to adapt current offerings and trying their best to ensure seamless integration and support for both Teams and Office applications independently – an extra challenge in an already difficult market.
