Amazon has announced that it is discontinuing its Chime collaboration app, a move that analysts say is a logical decision given the app's limited market share. The company will instead focus on its Chime software development kit (SDK), which has been successful in powering features for enterprises and vendors such as Slack.

The Chime app was introduced in February 2017, but it struggled to keep up with competitors like Microsoft and Zoom, which added significant new functionality to their platforms during the pandemic. As a result, Chime's feature set was quickly outshone, and its market share plummeted to a negligible 0.0%, according to one firm.

Amazon itself described its Chime app market share as "limited," and conceded that its competitors, which it referred to as partners, had outpaced it. The company will now lean into its partners' solutions, including Zoom, Microsoft Teams, and Cisco Webex, which will be available for Amazon internal meetings and customer communications.

In contrast, the Chime SDK has been a success, allowing enterprises and vendors to build their own capabilities into their apps. The SDK was introduced earlier than similar offerings from Microsoft and Zoom, giving it a significant market share advantage. Analysts say that the decision to kill the Chime app while increasing support for the Chime SDK makes perfect sense, as the SDK has been a popular choice for building collaboration features.

Amazon will provide a one-year warning to existing Chime app users, who will be able to continue using the service until February 20, 2026. The company has also pledged to help transition users to other platforms, including its own AWS Wickr service, as well as solutions from partners like Zoom, Webex, and Slack.

However, some analysts have questioned the long-term viability of AWS Wickr, which suffers from some of the same shortcomings as the Chime app. While Wickr has robust security capabilities, it may struggle to gain traction in the market. On the other hand, some analysts believe that Wickr's encrypted messaging capabilities could make it a viable option in select segments, such as governments.

In the end, the key takeaway for enterprise IT is to stick with the dominant players in the collaboration space. As one analyst noted, "It validates the decision to consolidate on the blue-chip collaboration solutions."

Amazon's decision to abandon its Chime app is a reminder that even the largest and most successful companies must be willing to adapt and pivot in response to changing market conditions. By doubling down on its successful Chime SDK, Amazon is positioning itself for continued success in the collaboration space.