Core Viewpoint - Microsoft has officially shut down Skype, marking the end of its status as the world's largest voice communication software [3]. Group 1: Rise and Fall of Skype - Skype was developed in 2003 by two Estonian programmers, aiming to enable free communication across geographical boundaries through its unique peer-to-peer (P2P) technology [15][16][17]. - The software gained rapid popularity, reaching 11 million users in its first year, 54 million by 2005, and over 400 million by 2008, becoming a leading instant messaging platform [23]. - By 2013, Skype had 300 million monthly active users and held a 36% market share in the international calling sector [25]. - However, by 2023, Skype's monthly active users had declined to 17 million, with daily active users dropping to 3.6 million, significantly lower than competitors like WeChat and WhatsApp [27][28]. Group 2: Reasons for Decline - Skype's decline is attributed to three ownership changes and a significant redesign in 2017 that negatively impacted user experience [30][32]. - The first ownership change occurred in 2005 when eBay acquired Skype for $2.6 billion, followed by a sale of a majority stake in 2009, and finally, Microsoft's acquisition for $8.5 billion in 2011 [30]. - The 2017 redesign led to a drop in app ratings from 3.5 stars to 1.5 stars, further alienating users [30][32]. - The rise of mobile internet and the emergence of competitors like WhatsApp and WeChat, which were designed for mobile use, highlighted Skype's shortcomings in adapting to new user needs [40][43]. Group 3: Industry Trends and Insights - The decline of Skype illustrates the importance of continuous innovation and integration within a larger ecosystem to maintain relevance in the tech industry [74]. - Skype's initial advantage of P2P technology diminished as internet costs decreased and mobile networks became prevalent, making its technology less unique [39][40]. - The shift towards social features in communication apps, as seen with WeChat and WhatsApp, created a competitive landscape where Skype's focus on being a communication tool was insufficient [49][50]. - Skype's inability to establish a sustainable revenue model, primarily relying on international call charges, led to significant financial losses, totaling over $1.2 billion from 2016 to 2020 [56][57]. Group 4: Lessons Learned - The story of Skype serves as a cautionary tale for technology companies, emphasizing that early technological advantages can fade without ongoing development and strategic integration into broader ecosystems [74]. - Companies must adapt to changing market dynamics and user preferences to avoid obsolescence, as demonstrated by Skype's failure to compete effectively against more versatile platforms [74].