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Microsoft added no significant end-user features to on-premises Skype for Business in 2019, closing out the year with a December update that mostly fixes bugs.
Microsoft's lack of investment in Skype server underscores how the company views the product as a placeholder for businesses not yet ready to move to the cloud.
In recent updates, Microsoft extended location-based routing to Skype for Business mobile clients. The feature, now a standard component of modern business phone systems, helps companies reduce PSTN costs by keeping audio traffic in-network when possible.
Microsoft also this year began a phased replacement of the Skype server's IT control panel, which is based on outdated technology. Another update gave IT admins new tools for automating user settings on a large scale.
Otherwise, the vendor's July and December updates contained mostly bug fixes and security tweaks for the Skype server. In years past, those updates would have included significant features for the Skype product. But more recently, the vendor has focused its research and development efforts on cloud-based Microsoft Teams.
Consequentially, many organizations are not even bothering to purchase the latest iteration of Skype server, version 2019, released last October, said Tom Arbuthnot, principal solutions architect at Modality Systems, a Microsoft-focused systems integrator.
Instead, those customers are sticking with the previous iteration, version 2015. Microsoft has scheduled extended maintenance for the 2015 and 2019 versions of Skype to end simultaneously in 2025, giving businesses little incentive to make the costly switch.
"I don't see load and loads of people upgrading to 2019. They will string out 2015 until they are ready to go to Teams," Arbuthnot said. "[Microsoft is] disincentivizing you from going to 2019."
The 2019 server introduced new ways to integrate the on-premises product with cloud services, such as cloud voicemail and Azure Active Directory. It also uses more recent security protocols. But it offers virtually no new end-user features compared to what was added to the 2015 version.
Microsoft's decision to stop investing in its on-premises unified communications product stands in contrast to Cisco. The rival vendor has continued to enhance the features of the messaging app Cisco Jabber even while building out a cloud portfolio based on the Webex suite.
Microsoft appears more focused on winning subscribers to Office 365, a cloud-based suite of productivity apps that includes Teams. In particular, the company has taken aim at the collaboration app Slack, a competitor to Teams.
Microsoft announced last month that Teams had gained 20 million daily active users, more than Slack's 13 million. But those figures still represent only a fraction of Microsoft's base of customers, which includes 200 million commercial users of Office 365.
Microsoft has not revealed how many organizations are still using Skype, but it likely remains one of the most-installed UC apps in the market. More than 100 million people used Microsoft Lync as of 2015 when the product was rebranded to Skype for Business.
Meanwhile, Microsoft has announced that it will shutter Skype for Business Online, a cloud-based product within Office 365, on July 31, 2021.