The Estonian-founded Voice over Internet Protocol (VoIP) technology firm Skype will leave an enduring global legacy as a trailblazer for tech startups—not just in Estonia, but across the world—Aktuaalne kaamera reported.
At its peak, Skype boasted 150 million monthly users and revolutionized digital communication. However, the platform has since been eclipsed by newer solutions such as Microsoft Teams and Zoom. Over a decade after its acquisition by Microsoft, the tech giant announced last week that it will retire Skype in May.
Yet, Skype’s significance extends far beyond free internet and video calls. Its success helped establish Estonia’s reputation as a major player in the global tech landscape, paving the way for future unicorns such as Wise and Bolt. The company’s influence also resonates internationally, having seeded innovation across industries and inspired countless startups worldwide.
Skype was co-founded by Swedish entrepreneur Niklas Zennström and Danish entrepreneur Janus Friis, while its core technology was developed by Estonians Jaan Tallinn, Ahti Heinla, and Priit Kasesalu. The project began in the early 2000s in a modest Soviet-era building in Tallinn’s Mustamäe district. Originally called “Skyper,” short for “Sky peer-to-peer,” the platform officially launched on August 29, 2003.
Although VoIP technology was not new at the time, Skype became an overnight sensation, offering a then-revolutionary capability: free internet calls to almost anyone, anywhere in the world. Within just 24 hours, the software had been downloaded 10,000 times. Within two months, it had reached one million registered users. The platform’s simplicity and accessibility set it apart, allowing even non-tech-savvy users to make voice and video calls effortlessly.
A Catalyst for Estonia’s and the World’s Tech Boom
Skype was not only a technological breakthrough but also a powerful symbol of Estonia’s emergence as a digital powerhouse. It became one of the country’s first major success stories in the tech industry, helping to shape Estonia’s identity as an innovation hub.
“From the outside, it’s easy to see Skype as an overnight success,” said Sten Tamkivi, former CEO of Skype Estonia (2005–2013). “But in reality, the same team had spent four to five years building various unsuccessful companies before hitting on the right formula.”
At the time, personal computers lacked built-in microphones or webcams, making the idea of internet-based calls seem premature. Yet, Skype’s creators pushed ahead, pioneering both voice and later video calling with remarkable foresight.
Martin Villig, co-founder of Bolt, noted that Skype had no shortage of competitors. “Just as Google wasn’t the first search engine and Facebook wasn’t the first social network, others had attempted VoIP solutions before Skype. Its success lay in its simplicity—it was easy enough for anyone to install and use.”
The software practically marketed itself through word of mouth. One internal benchmark was the “granny test”: Could a grandmother download Skype unassisted, set it up within 10 minutes, and call her family? The answer was a resounding yes.
Skype’s global reach became so profound that “to Skype” entered English and other languages as a verb—an achievement few tech brands can claim.
A Legacy That Extends Beyond Skype Itself
Skype’s influence did not end with the platform itself. The experience, networks, and capital gained from its success fueled further innovation worldwide.
“The sale of Skype not only brought confidence and experience but also an international network and capital, which directly contributed to the rise of companies like Bolt,” Villig explained.
Skype changed hands twice—first sold to eBay in 2005 for $2.6 billion and later to Microsoft in 2011 for $8.5 billion. Crucially, the wealth generated by these transactions helped fund the next wave of startups, not just in Estonia but globally.
“Over 900 new companies worldwide have been founded by former Skype employees,” Tamkivi revealed. “Collectively, they have created trillions of dollars in economic value across dozens of countries. That is an undeniable impact.”
While Skype’s 20-year journey is now drawing to a close, its imprint on the tech world remains. Its pioneering role in digital communication, its contribution to Estonia’s global reputation, and its influence on the broader startup ecosystem ensure that Skype’s legacy will endure for decades to come.
Source: ERR
