Skype was first released in August 2003 written by Estonian developers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, Danish Janus Friis, and Swedish Niklas Zennström, who had also originally developed Kazaa. Skype has 663 million registered users as of the end of 2010.It was bought by Microsoft in 2011 for $8.5 billion. Microsoft's Skype division headquarters is in Luxembourg, but most of the development team and 44% of the overall employees of the division are still situated in Tallinn and Tartu, Estonia.
The service allows users to communicate with peers by voice using a microphone, video by using a webcam, and instant messaging over the Internet. Phone calls may be placed to recipients on the traditional telephone networks. Calls to other users within the Skype service are free of charge, while calls to landline telephones and mobile phones are charged via a debit-based user account system. Skype has also become popular for its additional features, including file transfer, and videoconferencing. Competitors include SIP and H.323-based services, such as Linphone and Google Voice.Unlike most other VoIP services, Skype is a hybrid peer-to-peer and client–server system. It makes use of background processing on computers running Skype software. Skype's original proposed name (Sky Peer-to-Peer) reflects this fact.Some network administrators have banned Skype on corporate, government, home, and education networks, citing reasons such as inappropriate usage of resources, excessive bandwidth usage, and security concerns.On January 9, 2013, Microsoft revealed that it intends to retire Windows Live Messenger in favor of its Skype service, although
Messenger will continue in mainland China. Microsoft transitioned all users in April 2013
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