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Microsoft to Pull the Plug on Skype in May 2025, Teams Set to Take Over

Microsoft to Pull the Plug on Skype in May 2025, Teams Set to Take Over

Microsoft has showcased that Skype will be retired in May 2025 as the business shifts its focus to Microsoft Teams. The move is intended to streamline its consumer communication services and adapt to user needs.

“We will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” noted Jeff Teper, president of collaborative apps and platforms at Microsoft.

consumers will still have access to core Skype elements in Teams. Including one-on-one calls, group calls, messaging, and file sharing. Additional elements in Teams include hosting meetings, managing calendars, and building or joining communities. The enterprise showcased that over the past two years, the number of minutes spent in meetings by consumer consumers of Teams has quadrupled, indicating growing adoption.

“Hundreds of millions of people already use Teams as their hub for teamwork, helping them stay connected and engaged at work. School, and at home,” Teper added.

Microsoft is offering Skype people two options during the transition period. Skype people will be able to sign into Teams using their Skype credentials. Chats and contacts will automatically appear in the app.

The rollout begins with people in the Teams and Skype Insider programs. Teams and Skype people will be able to call and message each other during the transition. people who choose not to migrate to Teams can export their Skype data, including chats, contacts, and call history. Skype will remain available until May 5, 2025, allowing people time to make a decision.

To transition to Teams, customers can download the application from the Microsoft Teams website and. Log in with their Skype credentials. Microsoft has also provided a step-by-step guide to assist customers in making the switch.

Microsoft will discontinue paid Skype functions for new end-clients, including Skype Credit and. Subscriptions for international and domestic calls. Existing subscription clients can continue using their Skype Credits and subscriptions until the end of their next renewal period. After May 5, 2025, the Skype Dial Pad will remain available on the Skype web portal and. Within Teams for the remaining paid clients.

Microsoft acknowledged Skype’s role in shaping modern communication. “Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey,” Teper noted.

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This 5-year tech industry forecast predicts some surprising winners - and losers

This 5-year tech industry forecast predicts some surprising winners - and losers

Smartphone sales will grow in fits and starts, while tablet demand will wane. Large language models (LLMs) will boom, and demand for data management solutions will soar.

Also: Crawl, then walk, before you run with AI agents, experts recommend.

Furthermore, these technologies will be "hot" -- or "not" -- over the coming five years. As projected by ABI Research in its latest upgrade on technology markets through 2029. Some surprises emerged. The consultancy examined 66 essential tech market shifts, with 33 poised for growth and 33 facing contraction. Below are eight leaders and eight laggards.

Large language models: LLMs will see 35% compounded annual growth over the next five years. ABI predicted: "Enterprise software spending on LLMs continues to grow rapidly as proofs of concept mature into scaled deployments embedded across entire companies."

Data management tools. The exponential growth of cutting-edge technologies such as machine learning and generative artificial intelligence (Gen AI) will generate more than $200bn worth of data management opportunities worldwide by 2029: "The emergence of sovereign clouds underscores the need for more effective protection of personal and sensitive data."

Also: Enterprises are hitting a 'speed limit' in deploying Gen AI - here's why.

Smart home devices: ABI predicted technology offerings for home safety, security, and. Convenience will see a compound annual growth rate (CAGR) of 14% through 2029, reaching total shipments of 500 million.

Smart glasses: "High-value extended reality use cases and novel devices like AI-enabled smart glasses will propel enterprise XR adoption, which will reach million shipments by 2029," ABI expressed.

Humanoid robots. Shipments of life-like robots "will pick up pace in 2025, reaching over 180,000 per year by 2030 -- regardless of technological maturity and. Practical value," forecasted ABI. "Driven by lowering costs and novelty, humanoid robots for service, hospitality, and entertainment will buoy demand in the near term."

Security software and services: High demand for 5G-based network security software and. Services will drive a CAGR of 30% for software and 35% for services. "A dearth of available experts," noted ABI, "prevents the growth of in-house security teams and drives the need for managed solutions."

Also: I was an AI skeptic until these 5 tools changed my mind.

Warehouse management systems: Investment will reach $ billion, "driven by the introduction of advanced planning and analysis capabilities, as well as the increasing numbers of connected devices and automated material handling solutions requiring orchestration."

Data analytics for overall equipment effectiveness (OEE): ABI stated these solutions will grow at a CAGR of 13%: "With the increasing importance of data utilization, along with the never-ending goal for complete transparency into factory-floor operations, OEE is making a resurgence as a key stepping stone to effectively tackle these issues."

Tablet computers: Despite a 7% increase in 2024, tablet shipments will decline slowly through 2029, ABI predicted: "However, future demand may be driven by improved cellular attach rates with more aggressive pricing, new form factors -- foldable/flexible displays -- and. Adoption of AI aspects."

Smartphones: Though ABI projected billion smartphone shipments over the next five years, the market "has been maturing with demand being hampered not only by economic headwinds in recent years but also by a lack of compelling upgrades and lengthening replacement cycles." However, adding Gen AI to smartphones could provide a boost.

Also: Intel touts new Xeon chip's AI power in bid to fend off AMD, ARM advances.

Datacenter CPU chipsets: Declining from a 26% market share to 18% within the next five years.

Industrial blockchain: Revenue will fall almost 2% annually: "Most applications for industrial blockchain have failed to move past the pilot stages into successful commercial offerings," noted ABI. "Many of these do not provide a compelling enough use case that cannot be fulfilled by other technologies -- private networks, sovereign clouds, and. Emergent confidential computing technologies."

Cloud hyperscalers: "By 2029, with 7,800+ data centers globally, cloud hyperscalers face intense competition from colocation data centers as enterprises turn to localized entities," ABI stated. "Colocation facilities allow enterprises to partner with local providers that understand the local regulatory landscape, allowing greater control over their data and. Infrastructure."

Also: Most US workers don't use AI at work yet. This study implies a reason why.

Security hardware: The CAGR for the next five years will remain modest at 7%, ABI predicted, buffeted by "the growing prevalence of software-based alternatives to traditional hardware security tools such as firewalls."

Robotics offline programming software: "Revenue will grow at a modest annual rate. Resulting in turbulent years for smaller software vendors. For robotics automation, service providers and original equipment manufacturers must provide programming software at a minimal cost to demonstrate the working viability of their products," .

Tethered and mobile-based VR devices: Shipments of these devices will plateau. mentioned ABI, "accounting for only 34% of all shipments by 2029. While standalone VR devices are expected to continue to see shipment growth over the next five years, the rate of growth is slower than previously expected."

Also: OpenAI's Deep Research can save you hours of work - and now it's a lot cheaper to access.

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Physical Intelligence Launches ‘Hi Robot’, Helps Robots Think Through Actions

Physical Intelligence Launches ‘Hi Robot’, Helps Robots Think Through Actions

Researchers at Physical Intelligence, an AI robotics firm, have developed a system called the Hierarchical Interactive Robot (Hi Robot). This system enables robots to process complex instructions and feedback using vision-language models (VLMs) in a hierarchical structure.

Vision-language models can control robots, but what if the prompt is too complex for the robot to follow directly?

We developed a way to get robots to “think through” complex instructions. Feedback, and interjections. We call it the Hierarchical Interactive Robot (Hi Robot). — Physical Intelligence (@physical_int) February 26, 2025.

The system allows robots to break down intricate tasks into simpler steps, similar to how humans reason through complex problems using Daniel Kahneman’s ‘System 1’ and ‘System 2’ approaches.

In this context, Hi Robot uses a high-level VLM to reason through complex prompts and. A low-level VLM to execute actions.

Testing and Training Using Synthetic Data.

Researchers used synthetic data to train robots to follow complex instructions. Relying solely on real-life examples and atomic commands wasn’t enough to teach robots to handle multi-step tasks.

To address this, they created synthetic datasets by pairing robot observations with hypothetical scenarios and. Human feedback. This approach helps the model learn how to interpret and respond to complex commands.

It outdid other methods, including GPT-4o and a flat Very Large Array (VLA) policy. By superior following instructions and adapting to real-time corrections. It achieves a 40% higher instruction-following accuracy than GPT-4o. Hence, it demonstrates superior alignment with user prompts and real-time observations.

In real-world tests, Hi Robot performed tasks like clearing tables, making sandwiches. And grocery shopping. It effectively handled multi-stage instructions, adapted to real-time corrections, and respected constraints.

Synthetic data, in this context, highlights potential in robotics to efficiently simulate diverse scenarios, reducing the need for extensive real-world data collection.

As seen in an example below. A robot is trained to clean a table by disposing of trash and placing dishes in a bin. It can be directed to follow more intricate commands through Hi Robot.

Building on these developments, this system allows the robot to reason through modified commands provided in natural language. Enabling it to “talk to itself” as it performs tasks. Moreover, Hi Robot can interpret user contextual comments, incorporating real-time feedback into its actions, such as handling complex prompts.

This setup allows the robot to incorporate real-time feedback, such as when a user says “that’s not trash”, and adjust its actions accordingly.

The system has been tested on various robotic platforms, including single-arm, dual-arm. And mobile robots, performing tasks like cleaning tables and making sandwiches.

“Can we get our robots to ‘think’ the same way, with a little ‘voice’ that tells them what to do when presented with a complex task?” the researchers mentioned in the firm’s official blog. This advancement could lead to more intuitive and flexible robot capabilities in real-world applications.

Researchers plan to refine the system in the future by combining the high-level and low-level models, allowing for more adaptive processing of complex tasks.

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Market Impact Analysis

Market Growth Trend

2018201920202021202220232024
23.1%27.8%29.2%32.4%34.2%35.2%35.6%
23.1%27.8%29.2%32.4%34.2%35.2%35.6% 2018201920202021202220232024

Quarterly Growth Rate

Q1 2024 Q2 2024 Q3 2024 Q4 2024
32.5% 34.8% 36.2% 35.6%
32.5% Q1 34.8% Q2 36.2% Q3 35.6% Q4

Market Segments and Growth Drivers

Segment Market Share Growth Rate
Machine Learning29%38.4%
Computer Vision18%35.7%
Natural Language Processing24%41.5%
Robotics15%22.3%
Other AI Technologies14%31.8%
Machine Learning29.0%Computer Vision18.0%Natural Language Processing24.0%Robotics15.0%Other AI Technologies14.0%

Technology Maturity Curve

Different technologies within the ecosystem are at varying stages of maturity:

Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity AI/ML Blockchain VR/AR Cloud Mobile

Competitive Landscape Analysis

Company Market Share
Google AI18.3%
Microsoft AI15.7%
IBM Watson11.2%
Amazon AI9.8%
OpenAI8.4%

Future Outlook and Predictions

The Microsoft Pull Plug landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:

Year-by-Year Technology Evolution

Based on current trajectory and expert analyses, we can project the following development timeline:

2024Early adopters begin implementing specialized solutions with measurable results
2025Industry standards emerging to facilitate broader adoption and integration
2026Mainstream adoption begins as technical barriers are addressed
2027Integration with adjacent technologies creates new capabilities
2028Business models transform as capabilities mature
2029Technology becomes embedded in core infrastructure and processes
2030New paradigms emerge as the technology reaches full maturity

Technology Maturity Curve

Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:

Time / Development Stage Adoption / Maturity Innovation Early Adoption Growth Maturity Decline/Legacy Emerging Tech Current Focus Established Tech Mature Solutions (Interactive diagram available in full report)

Innovation Trigger

  • Generative AI for specialized domains
  • Blockchain for supply chain verification

Peak of Inflated Expectations

  • Digital twins for business processes
  • Quantum-resistant cryptography

Trough of Disillusionment

  • Consumer AR/VR applications
  • General-purpose blockchain

Slope of Enlightenment

  • AI-driven analytics
  • Edge computing

Plateau of Productivity

  • Cloud infrastructure
  • Mobile applications

Technology Evolution Timeline

1-2 Years
  • Improved generative models
  • specialized AI applications
3-5 Years
  • AI-human collaboration systems
  • multimodal AI platforms
5+ Years
  • General AI capabilities
  • AI-driven scientific breakthroughs

Expert Perspectives

Leading experts in the ai tech sector provide diverse perspectives on how the landscape will evolve over the coming years:

"The next frontier is AI systems that can reason across modalities and domains with minimal human guidance."

— AI Researcher

"Organizations that develop effective AI governance frameworks will gain competitive advantage."

— Industry Analyst

"The AI talent gap remains a critical barrier to implementation for most enterprises."

— Chief AI Officer

Areas of Expert Consensus

  • Acceleration of Innovation: The pace of technological evolution will continue to increase
  • Practical Integration: Focus will shift from proof-of-concept to operational deployment
  • Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
  • Regulatory Influence: Regulatory frameworks will increasingly shape technology development

Short-Term Outlook (1-2 Years)

In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing ai tech challenges:

  • Improved generative models
  • specialized AI applications
  • enhanced AI ethics frameworks

These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.

Mid-Term Outlook (3-5 Years)

As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:

  • AI-human collaboration systems
  • multimodal AI platforms
  • democratized AI development

This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.

Long-Term Outlook (5+ Years)

Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:

  • General AI capabilities
  • AI-driven scientific breakthroughs
  • new computing paradigms

These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.

Key Risk Factors and Uncertainties

Several critical factors could significantly impact the trajectory of ai tech evolution:

Ethical concerns about AI decision-making
Data privacy regulations
Algorithm bias

Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.

Alternative Future Scenarios

The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:

Optimistic Scenario

Responsible AI driving innovation while minimizing societal disruption

Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.

Probability: 25-30%

Base Case Scenario

Incremental adoption with mixed societal impacts and ongoing ethical challenges

Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.

Probability: 50-60%

Conservative Scenario

Technical and ethical barriers creating significant implementation challenges

Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.

Probability: 15-20%

Scenario Comparison Matrix

FactorOptimisticBase CaseConservative
Implementation TimelineAcceleratedSteadyDelayed
Market AdoptionWidespreadSelectiveLimited
Technology EvolutionRapidProgressiveIncremental
Regulatory EnvironmentSupportiveBalancedRestrictive
Business ImpactTransformativeSignificantModest

Transformational Impact

Redefinition of knowledge work, automation of creative processes. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.

The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.

Implementation Challenges

Ethical concerns, computing resource limitations, talent shortages. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.

Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.

Key Innovations to Watch

Multimodal learning, resource-efficient AI, transparent decision systems. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.

Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.

Technical Glossary

Key technical terms and definitions to help understand the technologies discussed in this article.

Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.

Filter by difficulty:

API beginner

algorithm APIs serve as the connective tissue in modern software architectures, enabling different applications and services to communicate and share data according to defined protocols and data formats.
API concept visualizationHow APIs enable communication between different software systems
Example: Cloud service providers like AWS, Google Cloud, and Azure offer extensive APIs that allow organizations to programmatically provision and manage infrastructure and services.

large language model intermediate

interface

synthetic data intermediate

platform

platform intermediate

encryption Platforms provide standardized environments that reduce development complexity and enable ecosystem growth through shared functionality and integration capabilities.

NLP intermediate

API

machine learning intermediate

cloud computing