Dive Brief:

• Microsoft has revamped Skype, an application that started as a way to make free phone calls online, by adding chat and messaging features that resemble Snapchat and Facebook Messenger, according to TechCrunch. The overhaul is the biggest change to Skype since it introduced its video chat in 2006, the publication said. 
• Skype now has a feature strongly resembling Snapchat Stories — the app's digital photo and video slideshows that disappear after 24 hours — that Microsoft has named Highlights. The difference is that Highlights are available for a full week and are broadcast to all followers in a manner similar to Twitter. The photo-centric redesign pulls up the camera with only a swipe away from chats and other screens.
• Microsoft also introduced a set of bots and chat add-ins to rival Facebook Messenger, the social network’s chat application that has 1.2 billion monthly users. The add-ins include Microsoft’s intelligent assistant Cortana, Bing search and Expedia travel booking, among others. The new Skype is available for Android smartphones now and will be available for iPhones within the next month.

Dive Insight:

Microsoft has a history of adopting new technologies and incorporating them into its desktop system. With the latest version of Skype, the company underscores the growing importance of mobile-first technology, and video- and photo-sharing, in particular. 

This demonstrates a major recognition of how mobile communications have evolved over the years, with younger generations avoiding phone calls altogether and eschewing laptops and desktops to instead communicate via apps like Snapchat or Facebook Messenger.

Microsoft has an opportunity to extend its mobile reach by leveraging the global popularity of Skype into other services like enhanced messaging and chat features. At last count, Skype had 300 million monthly active users worldwide and more than 1 billion mobile downloads, per a company blog post.

Skype is also incorporating a range of features and technologies that Microsoft has developed over the years, including its intelligent assistant Cortana, which will provide quick suggestions on how to respond to questions or comments in a chat. As developers get on board with creating bots and add-ins, Skype’s capabilities will likely multiply, similar to those for Amazon’s Alexa or Google Assistant. And while the Windows Phone failed to gain as much traction as some had hoped, Microsoft clearly hasn’t given up on developing software for mobile platforms.