
However, the company still had a major problem – Skype’s service was based on P2P technology. The first step Microsoft took for the Skype app was to ditch its own popular Windows Live Messenger service.

These apps were starting to challenge the dominance of Skype. This was also the same time when Zoom and Snapchat were founded.

The acquisition took place around the time when chat apps like WhatsApp and WeChat were gaining momentum.

This happened during the initial period of turning Skype into a profitable business while simultaneously keeping it relevant for consumers. Nevertheless, once Microsoft successfully acquired Skype technologies it faced some big challenges.

Offices and other places of social interactions such as schools and universities have shifted at home. Pandemic amplified demand for the app boosting its sales and stock price to paving a path for its success.Skype users were disappointed, so, Zoom focused on the struggles of its user base and offered high-quality audio and video calls.In November 2016, Microsoft shifted its focus from Skype and launched Teams.The transition resulted in calls, messages, and notifications repeating on devices making Skype unreliable.To capitalize on integration of Windows Phone and mobile apps the company transitioned the app from P2P networks to cloud-powered servers.In 2011, Skype has 100 million active users and nearly 8 million paying customers.
