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Microsoft is shutting down Skype after a 21-year run. Here's how it lost out to video call rivals

1. Microsoft will shut down Skype in May 2024, urging users to switch to Teams. 2. Skype has dwindled to 36 million daily users, struggling against stronger competitors. 3. Microsoft focuses on Teams integration, leveraging lessons learned from Skype's decline. 4. Skype's initial growth peaked with 405 million users in 2008 but never reached 1 billion. 5. Microsoft aims to streamline its offerings and innovate faster through Teams.

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Why Bullish?

Consolidating services around Teams could lead to increased user acquisition and retention, enhancing Microsoft's competitive position in collaboration tools. Historically, similar strategic shifts, like embracing cloud technology, have benefitted Microsoft significantly.

How important is it?

The article discusses a significant corporate decision affecting a key product area for Microsoft, which may mobilize existing Skype users towards Teams, strengthening MSFT's position in the collaboration market.

Why Long Term?

The transition to Teams represents a strategic shift that aligns with industry trends, promising future growth as Teams continues evolving ahead of competition. The focus on Teams is likely to complement Microsoft's overall business strategy and strengthen market shares.

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