Microsoft Teams Phone vs Cloud PBX: Which Is Right for Your Business?

Microsoft Teams has become the collaboration hub for many Australian businesses. But when it comes to making and receiving external phone calls, you have a choice: enable calling within Teams itself, or use a separate, dedicated Cloud PBX system. Both are modern VoIP solutions, but they cater to different needs. This article provides a balanced comparison to help you decide which is the best fit for your business.

Option 1: Microsoft Teams Phone System

You can turn Microsoft Teams into your business phone system. This allows your staff to make and receive external calls directly from the Teams app on their computer or mobile. To do this, you need two things:

1. A Microsoft Teams Phone license: This is an add-on to your standard Microsoft 365 subscription.
2. A connection to the public phone network: You have two main ways to achieve this:
   • Microsoft Calling Plans: You buy your phone numbers and call minutes directly from Microsoft. This is simple but can be expensive and less flexible.
   • Direct Routing: You use a third-party provider, like Click2Call, to connect Teams to the phone network via a SIP trunk. This is far more cost-effective and offers greater flexibility and support.

Option 2: A Dedicated Cloud PBX

A dedicated Cloud PBX is a complete, standalone phone system hosted by a provider like Click2Call. It offers a comprehensive suite of advanced telephony features and is managed through its own web portal and dedicated mobile/desktop apps. It operates entirely independently of Microsoft Teams.

Comparison: Teams Phone vs. Cloud PBX

Let's compare the two options across key business considerations.

Who Should Choose Microsoft Teams Calling?

Teams Calling is a great fit for businesses that are deeply embedded in the Microsoft 365 ecosystem and whose primary need is to consolidate communications into a single app. If your staff live in Teams all day and your call handling needs are relatively simple (e.g., direct calls to staff members), the convenience of a unified platform can be a major benefit.

Who Should Choose a Dedicated Cloud PBX?

A dedicated Cloud PBX is the better choice for businesses that have more complex call handling requirements or rely on their phone system as a critical tool for sales and customer service. If you need sophisticated call routing, detailed analytics, advanced AI features like an AI Receptionist, or have a contact centre environment, a dedicated Cloud PBX will provide a more powerful, reliable, and cost-effective solution.

The Verdict

The choice is not about which is "better," but which is the "best fit" for your specific business needs. For ultimate simplicity and a unified user experience, Teams Calling is compelling. For ultimate power, features, and specialised telephony support, a dedicated Cloud PBX is the clear winner. At Click2Call, we offer both solutions, so we can help you make the right choice for your Australian business.