Pure IP Blog

Comparing Cost and License Models for Microsoft Teams, Cisco Webex and Zoom

Written by Tania Morrill | Jun 12, 2023 11:03:15 AM

In the world of UCaaS, Microsoft Teams, Zoom, and Cisco Webex have emerged as the top solutions. Pure IP is proud to be a certified partner to offer global PSTN connectivity for all 3.

Each platform has unique features, but the core functionality has become very similar. So much so that if you do a feature comparison, most features will have a tick for all three solutions. The platforms are constantly innovating but are quick to catch up with each other feature-wise.

Features and user experience are critical to your platform decision, but so are cost and licensing. In this blog, we compare the prices and licensing models for Microsoft Teams, Zoom and Webex and point out some key differences you should know.

All prices are listed in USD and include any annual discount. All prices are sourced from public first-party information, but prices frequently change, so talk to the vendors for the latest pricing and options.

This blog will help you understand the different Microsoft Teams, Zoom and Cisco Webex options.

Microsoft Teams Licensing

Starting April 1, 2024, Microsoft unbundled Teams from Microsoft 365 and Office 365 suites globally. That means for new enterprise customers who wish to provide workers with both Microsoft Teams and the value in existing Microsoft 365 or Office 365 Enterprise suites (E1/E3/E5) they will need to purchase two SKUs: one E1/E3/E5 (no Teams) suite and one Teams standalone (Microsoft Teams Enterprise or Microsoft Teams EEA).

Microsoft 365 Business suites (up to 300 users) and Frontline worker suites will be available in versions both with and without Teams. 

For existing Office 365 or Microsoft 365 customers, chances are high that you already have access to Microsoft Teams. Until late 2023 in Europe and early 2024 elsewhere, Microsoft automatically included Teams in its productivity suites. The suites are broadly categorized as follows:

  • Microsoft 365 for Business: Tailored for small and medium businesses with up to 300 users.
  • Office 365: Primarily designed for Enterprise Customers (E licenses), comprising the core products.
  • Microsoft 365: Offers a comprehensive suite for Enterprise Customers (ME licenses).
    Additionally, there are specialized suite options for Frontline (F licenses), US government (G licenses), and Education (A licenses).
Existing Enterprise customers can either continue with the suite license inclusive of Microsoft Teams or opt for the new SKU without Teams. These new suites lacking Teams are labeled as "No Teams" suites.

Moreover, Microsoft Teams is available as a standalone product termed "Microsoft Teams Essentials." This license is more economical and solely encompasses Microsoft Teams, excluding other Microsoft 365 components like Exchange or SharePoint. It's aimed at very small businesses that might utilize another email platform. While Teams Phone can be added to this SKU, it's considered a rare scenario.


Teams Phone Add-on


Teams Phone is an additional capability to the core Microsoft Teams, officially referred to as "Teams Phone Standard." Teams Phone Standard licenses provide users with all the features of Teams Phone System on a per-user basis, including cloud voicemail, caller ID, call park, call forwarding, auto attendants, call queues, call transfer, and caller ID.

This supplementary Teams Phone license is inclusive in Office 365 E5 and Microsoft 365 E5, the highest-level suite licenses. If you have the original suites or have appended the Teams Enterprise add-on to the new "No Teams" suites, you're in luck as Office 365 E5 or Microsoft 365 ME5 users already possess the requisite license for Teams Phone. Deploying it will maximize your investment.

However, for users with any other license SKU/Suite, such as E3, you'll need to procure the Teams Phone Standard per-user add-on license. Frontline workers (F1 or F3) are eligible for a specially priced Teams Phone Standard Frontline Worker license.

There are no additional licensing fees for the user software on desktop or mobile, nor for the utilization of Physical Teams Phones or Teams Displays by licensed users.

More details on Microsoft Teams licensing are here.


Microsoft Teams Phone Connectivity

Microsoft Office 365 E3 includes only the Teams core product. You will need to add Teams Phone if you want to make phone calls. E5 includes Teams Phone as standard.

A Teams Phone license allows you to add a phone number and phone service, but it does not include them. You will need to add 1 of the following for each user (you can mix and match whatever combination you like

  • Microsoft Calling Plans – Domestic calling plans from $144 PUPY
  • Operator Connect – varies by operator
  • Direct Routing – varies by operator
  • Teams Phone Mobile – vary by operator

Contact Pure IP for pricing for Microsoft Teams Operator Connect and Direct Routing.


Microsoft Teams PSTN Audio Conferencing

PSTN Audio Conferencing was an add-on license but is now included in all Office 365 SKUs. However, it does need to be enabled.


Microsoft Teams PSTN Room Systems and Devices

  • Microsoft Teams Shared Device License – $96 Per Device Per Year
  • Microsoft Teams Rooms Basic - free for up to 25 Rooms
  • Microsoft Teams Rooms Premium = $480 per room per year

Microsoft Teams Shared Devices add-on license allows offices to designate devices as shared devices, including common area phones, Teams displays for hot desks, and Teams panels for meeting spaces.

Microsoft Teams Rooms Pro includes advanced management, remote configuration and device analytics. Microsoft also offers a Basic free Rooms license.

Zoom Costs and Licensing

Zoom started primarily as a meeting platform but now offers Phone, Mail and Calendar, Team Chat, Events and Webinars, Contact Center and Whiteboard. These can be purchased a la carte or Zoom offer a "Zoom One" bundle of services.

Zoom One

Zoom One has several SKUs, from a free Basic plan to Pro, Business, Business Plus and Enterprise (a custom pricing agreement)

  • Basic – Free
  • Pro - $149 PUPY
  • Business - $199 PUPY
  • Business Plus - $250 PUPY
  • Enterprise – per customer pricing agreement

All SKUS include meeting functionality. Business adds SSO and managed domains, and Business Plus adds Phone and unlimited regional phone calls.

Many features are also available as add-ons to any Zoom One SKU.

  • Large Meetings, up to 500 participants, $600 PUPY
  • Zoom Webinars -$690 PUYY
  • Audio Conferencing - Audio Plan starts at $100.00/month and is billed based on the per call per country

Zoom Phone

Zoom Phone can be bought as part of the Zoom One bundle or on its own:

  • Zoom Phone PAYG - $120 PUPY plus calls
  • Unlimited Regional Calling - $180 PUPY
  • Pro Global Select- Unlimited domestic calling in one of the 40+ countries and territories supported
  • Optional add-on: unlimited calling to 19 countries/territory - Starting at $120 per year

Zoom Phone can also be connected to a certified PSTN provider like Pure IP, providing global PSTN connectivity at competitive rates.

Zoom Rooms

Zoom offers a Room System license for $499 per room per year, with discounts available above 49 license's.

Conference Room Connector, which allows connecting legacy endpoints including Polycom, Cisco, Lifesize and others to Zoom, also costs $499.

Cisco Webex Costs and Licensing

Cisco Webex has the simplest licensing model of the three providers. It offers a Webex suite or separate licenses for Meetings, Calling (Phone) and Webinars and Events.

Webex Suite

Webex Suite includes conferencing, calling chat, file sharing, and whiteboarding.

  • Free Plan
  • Suite $270 PUPY
  • Enterprise – negotiated pricing

Webex Suite includes a Call Plan.

Webex suite also includes Slido and Vidcsat. Slido is a Q&A and polling platform that helps users to get the most out of meetings and events by crowdsourcing top questions and engaging participants with live polls and quizzes. Vidcast is a video messaging tool that allows users to record and share short video messages. Vidcasts can be used for a variety of purposes, such as status updates, idea sharing and training.

Website Suite can also be paired with a calling plan from a certified provider like Pure IP.

Download our Complete Guide to Webex Calling here >>

Webex Individual SKUs: Meetings, Calling and Webinars and Events

Webex also offers individual SKUs. Each has a limited free plan.

The Meet Plan is $144 PUPY, Webex Call Plan $183 PUPY, Webex Webinars starts at $675 PUPY for 1,000 attendees.

Webex Room Device Subscription

Cisco Webex Device subscription provides registration of a Cisco Webex device to the Cisco Webex cloud or to Cisco on-premises infrastructure. In addition, it includes software upgrades for your Cisco Webex device, ensuring the latest and most secure experience.

The cost of a Cisco Webex Device subscription depends on the type of device you purchase and the length of your subscription. Pricing is not available publicly.

Comparison Considerations

All three solutions push towards a UCaaS and collaboration suite model, offering better value if you buy the suite.

It is worth noting that while all three solutions have similar features, some of the capacity limits vary quite widely. Meeting participants, for example, with all business or enterprise license's. Teams support up to 1,000 participants. Zoom tops out at 300 participants without paying for an add-on or moving to Enterprise. Webex tops out at 200 participants before you need to move to Enterprise for up to 1,000 participants. They all include different levels of cloud recording capabilities too.

Approaches to device licensing also vary, so knowing how many physical devices you need for users, common areas, and rooms should factor into your total costing model.

If you already have Office 365, some of the core cost of Microsoft Teams is covered within that suite, but it is always worth considering the solution's total cost.

Are Calling Plans from the Vendor or a Certified Telephony Partner Better?

Microsoft Teams, Zoom and Webex all offer the capability to take your user phone numbers and service from a certified provider. While the native options from Microsoft, Zoom and Cisco might be great for your needs, certified providers can often provide broader country coverage and different pricing models to fit your usage requirements better. Pure IP is certified for Microsoft Teams, Zoom and Webex and can provide cloud PSTN connectivity in 47 countries and local PSTN connectivity in many more.

If you would like advice from us on whether Microsoft Teams, Zoom or Webex might be suitable for your needs or understand the pricing of our cloud telephony options for these platforms, get in touch with our team.