Can Microsoft Teams replace your phone system?

Businesses everywhere continually seek options for improving productivity, increasing collaboration, exceeding customer service standards, and decreasing unnecessary expenses. One of the most costly investments many companies have is their traditional private branch exchange (PBX) phone systems.

Between the cost of hardware, installation, and maintenance, not to mention the dependency on physical phone lines that literally tether the business to a single physical location, the numbers can add up quickly. That’s where Microsoft Teams Phone can help.

With the right strategy and guided expertise, Microsoft Teams can be a viable replacement for your traditional phone system. If you are already familiar with Microsoft Teams, you know that the solution offers numerous capabilities that satisfy communication goals.

Many business owners know that their legacy phone systems can’t give them the functionality they need for today’s business communications, but they still have questions about whether Teams Phone could be the right solution to replace these older phone systems. Let’s look further into the value of Microsoft Teams, how it works for businesses, and how you can ensure Teams Phone features can replace your current phone system.

What is Microsoft Teams Phone?

Before we look at whether Teams Phone can replace your legacy business phone system, let’s talk about what the Microsoft Teams platform is. Microsoft calls it the ultimate messaging app, but that seems an inadequate summary of the capabilities of this highly valuable platform.

In actuality, Teams is a fully functional workspace that allows for almost any type of communication you could need for business. It’s a one-stop shop for instant messaging, virtual meetings, file and app sharing, and real-time collaboration.

Teams Phone is the technology that enables PBX and voice call control with Microsoft Teams in the Microsoft 365 cloud. Calls within the organization don’t go through the public switched telephone network (PSTN), a huge advantage for large, multi-site organizations that want to eliminate long-distance charges for internal calls. However, that doesn’t mean you can only use it for interoffice calls. There are additional options for Teams Phone that allow users to connect to the PSTN for external calls.

Features and limitations: Comparing Microsoft Teams Phone with your traditional phone system

Microsoft Teams offers capabilities beyond those traditionally associated with phone systems, such as video calls, chat, and file storage. However, while Teams offers many features, its native functionality may not be sufficient for all your needs. Microsoft didn’t build Teams as an enterprise communications system but as a collaboration platform with basic calling features. Since its release, the video, chat, and file storage components have been critical to remote workers.

Related: Should You Migrate from PBX Systems to Enterprise-Level Microsoft Teams >>

To determine whether Microsoft Teams is a suitable replacement for your phone system, consider both the platform’s comprehensive features and the limitations that may come with it. Microsoft Teams offers a free version of its collaboration platform for commercial Microsoft 365 subscribers.

The free version includes:

• Unlimited half-hour one-on-one meetings for up to 100 participants
• Unlimited one-hour group meetings for up to 100 participants
• Unlimited coworker and customer chats
• 5 GB of cloud storage per user
• File sharing, tasks, and polling
• Data encryption for files, meetings, chats, and voice calls

If cost is your primary consideration or you own a small business, you may opt for the free version. However, if you want access to additional options with expanded features that most large companies require, you’ll need to upgrade to the business solution.

Off the shelf, Microsoft Teams Phone can’t wholly replace a phone system, particularly for more complex enterprise infrastructures. However, with the right implementation partner, you can get all the functionality you need to provide a robust replacement for traditional phone systems with the modern features companies need to do business today.

What features does Teams offer?

Teams offers several critical phone system features that can help provide you with a high-quality experience for your customers. For example, it may allow you to:

• Control hold music
• Provide auto-attendants, which help guide callers through the correct menu options and even answer simple questions without having to connect to a live representative
• Forward calls or set up simultaneous rings
• Share incoming calls between users
• Transfer to voicemail during a call
• Access multiple caller ID options
• Switch devices, so employees can quickly transfer devices while maintaining a smooth customer experience
• Block certain types of calls or block all calls but allow specified ones through
• Conduct video and voice calls with connected team members
• Deliver voicemails to the exchange mailbox at the same time a voicemail is delivered
• Use shared line appearance
• Configure incoming calls when a user is already in a call or a conference, based on the company’s unique needs and plans

These features can be incredibly beneficial, especially as your business grows and you have more incoming phone traffic. However, it’s critical to consider what isn’t offered by those solutions and how such features could improve your overall business communications.

Additional features you may need for your business phone system

As your business grows, you may want to expand your communication options and offer a more integrated approach. You may need capabilities that will allow you to voice-integrate Teams and make the most of internal and external communications. For example, consider whether your business could benefit from the following features:

• Unified communications across all your systems, keeping voice, data, video, and mobile in one location so users can easily connect with your brand
• Advanced call routing options to ensure that every call reaches its appropriate destination
• Messaging from within the platform, including communication with external customers over text and chat
• Cloud calling that creates a more seamless, reliable experience for your users
• Disaster recovery options to keep better track of your data and bring everything back up again quickly in the event of an emergency

Using the right enterprise phone solution can take Microsoft Teams from functional to exceptional for your business. As you ask, “Can Microsoft Teams replace our phone system?” make sure you consider the additional features you need to allow your business to flourish.

How does Microsoft Teams Phone System integrate with existing VoIP providers?

There are multiple ways to enable external calling in Microsoft Teams. Each comes with its own benefits and trade-offs, so you’ll need to evaluate your options based the needs of your business.

• Microsoft Calling Plans: Microsoft Calling Plans are ideal for businesses looking for a simple voice service that you can activate quickly and easily on a per-user basis and that allows you to manage your entire communications stack through the Office 365 admin center.
• Direct Routing: If, however, you have complex requirements—such as sophisticated configurations, call routing demands, or integration with other applications—and need more flexibility, Direct Routing is a better option.
• Operator Connect: Operator Connect offers a middle ground, with support for flexibility, integrations, etc, but is managed through the Office 365 admin center.

For a deeper dive into all three connectivity options, read our Ultimate Guide to Microsoft Teams Calling

Analyze your communication systems needs

Before you decide if Microsoft Teams can replace your phone system, compare your business needs with all of Teams’ features. For solopreneurs or very small businesses, Teams may work just fine on its own. However, you should carefully analyze whether it provides all the functionality you need. Take a look at the following features that are pivotal to many business operations.

Calling Plans

Microsoft does offer Calling Plans, but they can be relatively pricey and somewhat limited compared to what most carriers provide, especially regarding feature availability in certain countries. You must stay within their calling plan parameters and settle for basic call features. 

Customer experience

Consider the experience you want your incoming callers to have. Uptime, call quality, call routing, extensions, and call transfers are just a few of the phone features you should depend on to safeguard your brand and reinforce your business dependability. Companies with great customer service provide a seamless, pleasant calling experience that routes customers to the right person quickly and with minimal bouncing.

Related: Teams Phone Management - Get ahead of fall behind

Though Teams doesn’t have enterprise-level phone system functionality, you can invest in your current infrastructure while leveraging the benefits of voice calling and Microsoft Teams to scale your communications network to fit all your business needs.

Unified communications

Many companies are dealing with some of the downsides of growth, such as disparate software and hardware that can cause frequent compatibility issues, maintenance headaches, and training nightmares. The solution is unified communications. Microsoft Teams helps optimize collaboration and streamline communication. Just remember that it’s best to have an experienced partner to implement and customize it to fully replace your current phone system.

Getting the most out of your current voice system

Look for a provider that can boost your Teams instance with an enterprise voice-enabled solution. This will allow your company to make and receive external calls through Teams as well as Webex, Zoom, traditional PBX, and more, through a trusted, secure connection with a cloud-based global voice network.

Your ideal Teams solution transforms your Teams capability into an enterprise voice solution. It will help you extend your voice system while filling service gaps you may experience using Microsoft Teams alone. You’ll get all the video, chat, file storage, and Microsoft integrations you love about Teams plus the enterprise voice features your growing business still needs.

Integrating Microsoft Teams Phone for voice capabilities requires expertise

Microsoft Teams and Teams Voice offer many features that can revolutionize not only how your workforce communicates and collaborates internally but also how you serve your customers and reinforce your brand reputation. However, there are some issues with out-of-the-box features that may not be sufficient.

The good news is that you can leverage the native capabilities of the platform if you have the experience to understand its limitations, as well as the resources, technology, and expertise to incorporate it into an enterprise solution specifically designed for your business. For most, this means engaging a telecom MSP.

The right telecom MSP partner can analyze your current infrastructure, software, and business communication needs before designing a customized solution that gives you all the functionality you need to replace your legacy phone system. Pure IP has been at the forefront of Microsoft voice services for two decades, and was among the first to join Operator Connect as an original launch partner. Our tailored Microsoft voice solutions ensure smooth, reliable integration, maximizing the value of Teams for our customers globally.

We work with your team to assess your network, design the solution, and seamlessly migrate your voice services to Microsoft Teams. After deployment, we provide 24/7 monitoring and ongoing management, giving you control through our online portal to manage usage and services. Contact us to learn more.