How Zoom Killed Skype: The Rise of a Video Conferencing Giant

Imagine a world where “Skype” was the go-to verb for video calls. That was reality until a newer, lesser-known competitor zoomed past it. Here’s how Zoom went from obscurity to dominance.

The Dominance of Skype

In the early 2010s, Skype was the king of video conferencing. Acquired by Microsoft in 2011 for $8.5 billion, Skype was a household name, so popular that “Skype” had become a verb. But as Microsoft integrated Skype with other services, the platform grew increasingly complex and less user-friendly.

Enter Zoom

In 2011, Eric Yuan, a former lead engineer at Cisco WebEx, founded Zoom. Yuan was driven by a vision for a simpler, more reliable video conferencing tool. Zoom officially launched in 2013 with a focus on providing an easy-to-use, high-quality video conferencing experience.

The Key Differentiators

• Simplicity and Reliability: Zoom’s interface was intuitive and user-friendly, focusing on seamless, high-quality video calls. Unlike Skype, which had become bloated with additional features, Zoom stuck to its core functionality.

• Freemium Model: Zoom offered a free version with generous features, attracting a wide user base who wanted a no-cost solution without compromising on quality.

• Business Focus: From the start, Zoom targeted business users by providing features like virtual backgrounds, breakout rooms, and robust security measures that appealed to professionals.

The Pandemic Effect

When the COVID-19 pandemic hit in early 2020, the demand for reliable video conferencing skyrocketed. Zoom was perfectly positioned to meet this need. Its user-friendly interface and dependable performance made it the go-to platform for businesses, schools, and social gatherings.

Microsoft’s Pivot

As Zoom’s popularity surged, Microsoft shifted its focus from Skype to Microsoft Teams, its collaboration platform that integrated video conferencing, chat, and file sharing. This pivot allowed Zoom to capture a significant share of the market that Skype once dominated.