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Rod Falanga's avatar
Rod Falanga
Brass Contributor
Jan 29, 2020
Solved

What is the pricing of MS Teams for enterprises?

We all know that Skype for Business is going away soon. Where I work, they've been using Skype for Business for many years. Like most people, they're resistant to change. Some of us have been experimenting with using MS Teams for a while. I live MS Teams. However, management are now saying that MS Teams is too expensive, so they're looking for alternatives.

 

This makes me wondering, what is the pricing for MS Teams?

  • Rod Falanga It is hard to do a business case for Teams vs Skype for Business when you don't get the figures from them. Based on that (no facts at all) you can easy say to them that Teams will not be more expensive.

11 Replies

  • Yeah not sure where the Teams is too expensive is coming from. It's pretty much the same cost. If you are going from an under licensed or a perpetual purchase of skype licenses on prem, then yeah, it will cost most, but looking elsewhere will net the same costs if not more considering all the things you get with a Teams licenses (E3). So you have to take into consideration all the licensing cost etc in that case.

    Anyway, if we knew more about your actual deployment, and current license scenario we could probably give better comparisons.
    • Rod Falanga's avatar
      Rod Falanga
      Brass Contributor

      I should have mentioned that I work for a large state government agency, so E1, E2, etc. I don't think applies to us. We have roughly 3500 employees.

      • LinusCansby's avatar
        LinusCansby
        MVP

        Do you run Skype for Business server today or Online? What kind of licenses do you have Office 365 or CAL licenses for Exchange, Skype, Sharepoint ets?

  • Hi,

     

    First Skype for Business is not going away soon. Skype for Business Online will be replaced by Teams 2021, but Skype for Business Server will continue existing after that. But most of the new features will come to Teams and not to Skype for Business.

     

    The pricing depends on were you buy your licenses and how many. Larger enterprises get more discount that smaller enterprises, also there is some differences between countries.

     

    For Enterprises you will buy Enterprise licenses and then you will get Teams with E1, E3 and E5 licenses. With E5 Enterprise Telephony is included and the Audio Conferencing license (dial-in) is included. For E1 and E5 you can select if you want to add these as Add-Ons.

    https://www.microsoft.com/en-us/microsoft-365/business/compare-more-office-365-for-business-plans

     

    So the prices are per user: E1 ($8/month), E3 ($20/month) and E5 ($35/month). But this will also include other products, so if you are using Office Pro Plus, Exchange, SharePoint, Yammer, etc. these are included. 

     

    So compared with the Skype for Business license the cost for Teams licenses shouldn't be higher for you. But since you will be changing from one product to another you will have to spend some money on user adoption to educate your users, since it is very expensive to spend money on licenses and not educate your users how to use the new product fully.

  • Henry Edwards's avatar
    Henry Edwards
    Brass Contributor

    It's free for up to 300 users, however if you have more users then Office 365 (E1 upwards for enterprise) needs to be purchased. 

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