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Skype

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Skype was a major telecommunications application used for digital communication. It was best known for IP-based videotelephony, which means making video calls over the internet. Users also used it for voice calls, instant messaging, and file transfers. It even allowed users to make debit-based calls to traditional landline and mobile telephones.

Skype logo 2017
Skype logo 2017

Because it worked on desktops, mobile phones, and video game consoles, it became a global tool for staying connected.

The way Skype functioned changed significantly over its lifetime. Originally, it used a hybrid peer-to-peer and client–server system. In a peer-to-peer architecture, the software uses the connections between individual users to help the network function. In May 2012, the system moved to being powered by Microsoft-operated supernodes. By 2017, Skype transitioned again to a centralized service based on Azure. Azure is a cloud-based platform that allows for centralized storage of text messages, pictures, and files. This change allowed the service to store video messages and call recordings for up to 30 days.

Skype offered many different tools for various types of communication. For individuals, it provided group chats, emoticons, and user profiles. The service also included a feature called SkypeIn, or Online Numbers. This allowed users to receive calls from traditional phone subscribers by using a local number in many different countries. For professional settings, Microsoft introduced Skype for Business. This version combined features from a product called Lync to help organizations communicate. The platform also supported large group video chats, which could include up to 50 people by 2019.

The history of Skype began in 2003. It was founded by Niklas Zennström from Sweden and Janus Friis from Denmark. They worked with four Estonian developers: Ahti Heinla, Priit Kasesalu, Jaan Tallinn, and Toivo Annus. The founders wanted to reduce the cost of voice calls by using a peer-to-peer protocol. The name "Skype" was actually a shortened version of "Skyper." The team chose this because they wanted a name that combined "sky" and "peer-to-peer," but the original name was already taken by other domain names.

Ownership of Skype changed hands several times as the company grew. In September 2005, eBay acquired Skype Technologies for approximately $2.6 billion. Later, in September 2009, a group including Silver Lake and Andreessen Horowitz bought 65% of the company for $1.9 billion. This transaction valued the entire business at $2.92 billion. In May 2011, Microsoft purchased Skype for $8.5 billion. Microsoft then used the technology to replace its own Windows Live Messenger service.

Skype 4.0 screenshot
Skype 4.0 screenshot

This acquisition helped integrate Skype into the Windows ecosystem.

Skype was incredibly successful in terms of global usage and market reach. In 2009, it was considered the largest international voice carrier based on minutes of calls. By 2014, Skype held a 40% share of the international call market. The number of users grew rapidly, reaching over 660 million accounts by the end of 2010. In February 2012, the service saw 34 million users online at the same time. Even near the end of its life, it remained widely used. In February 2023, approximately 36 million people used the service every day.

Throughout its existence, Skype introduced many notable technological features. It released "Mojis," which were short video clips and GIFs used to express emotions in chats. The service also collaborated with PayPal to allow users to send money during a conversation. In 2019, Skype added an AI-powered feature to blur video backgrounds using software alone. This was possible even without a special depth-sensing camera. Despite its many features, the service was eventually retired on May 5, 2025. Microsoft now directs users to Microsoft Teams, though the Skype Dial Pad remains for paid users.

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File:Skype logo 2017.svg
Skype logo 2017.svg
File:Skype 4.0 screenshot.png
Skype 4.0 screenshot.png
File:Prism-slide-8.jpg
Prism-slide-8.jpg
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