VoIP vs Microsoft Teams Phone | Comparison Guide

Microsoft Teams Phone gets pitched a lot as a “phone system replacement.”
Sometimes that’s true. Sometimes it’s… optimistic.

The confusion usually comes from mixing up communication tools with communication systems. This guide clears that up so businesses can make the right call—without vendor bias or sunk-cost thinking.

What Is Microsoft Teams Phone?

Microsoft Teams Phone adds calling capabilities to Microsoft Teams by:

• Enabling PSTN calling

• Assigning phone numbers to users

• Allowing inbound and outbound calls

At its core, it’s a calling layer inside a collaboration tool.

If you need foundational context first, start with the basics: Understanding UCaaS.

What Is VoIP in This Context?

VoIP refers to internet-based calling delivered through:

• Standalone VoIP providers

• Cloud phone systems

• Full UCaaS platforms

VoIP is the transport. The real difference lies in how complete the platform is.

This distinction is why UCaaS vs. VoIP matters before comparing tools.

VoIP vs Microsoft Teams Phone: Side-by-Side

This table highlights why Teams Phone works best inside certain environments—but not all.

Where Microsoft Teams Phone Works Well

Teams Phone can be a solid fit when:

• The business already lives in Microsoft 365

• Calling needs are simple

• Most calls are internal

• There’s minimal call routing complexity

In those cases, Teams Phone can reduce tool sprawl.

Where VoIP / UCaaS Clearly Wins

Dedicated VoIP and UCaaS platforms shine when:

• Call handling impacts customer experience

• Departments require queues and routing logic

• Businesses support remote or hybrid teams

• Admin simplicity matters

This is why UCaaS platforms support hybrid teams as well as remote.

Call Quality and Reliability

Both approaches rely on the network—but behavior differs.

UCaaS platforms are designed specifically for voice traffic and often provide:

• Better call handling controls

• More granular diagnostics

• Clearer voice prioritization

Teams Phone quality depends heavily on the broader Microsoft environment and network tuning.

Either way, meeting what’s required for a VoIP phone system is essential.

Security and Management Differences

Microsoft Teams benefits from Microsoft’s security framework—but that also means:

• More complex admin roles

• Multiple portals

• Broader blast radius if misconfigured

UCaaS platforms offer:

• Purpose-built admin interfaces

• Communication-specific controls

• Easier oversight for IT teams

Security considerations apply to both, which is why UCaaS security remains relevant.

Cost Considerations

Teams Phone pricing can look attractive—until you factor in:

• Licensing tiers

• Calling plans

• Add-ons for advanced features

• Third-party contact center tools

UCaaS pricing is often more predictable, especially once you understand the UCaaS pricing models.

The “Hidden Work” Factor

From the field, this is where Teams Phone trips businesses up:

• Call flow customization is limited

• Troubleshooting spans multiple systems

• Advanced scenarios require workarounds

UCaaS platforms are built for these scenarios from day one.  Read our Unified Communications blog if your interested in learning more about UCaaS

How This Impacts Customer Experience

Internal collaboration is important—but customer calls are unforgiving.

UCaaS platforms consistently outperform Teams Phone when communication directly affects customers, which is why UCaaS plays such a big role in improving customer experience.

The Bottom Line

Microsoft Teams Phone is a solid collaboration add-on.
UCaaS platforms are complete communication systems.

If your phone system touches customers, sales, or support, CNiC UCaaS solutions are usually the better long-term choice. If calling is mostly internal and tightly tied to Microsoft workflows, Teams Phone can make sense.

The key is choosing the system that matches how your business actually communicates—not just what you’re already paying for.

David McFarlane Founder & CEO

As Founder and CEO of CNiC Solutions, David McFarlane has spent more than 15 years guiding Houston-area organizations through complex IT and cybersecurity challenges. His hands-on leadership ensures technology decisions align with business goals, risk management, and operational efficiency.

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