Choosing the right phone system is crucial for businesses of any size, and with so many options available, selecting the most suitable one can be challenging. Microsoft Teams and Skype, both products of Microsoft, cater to businesses’ communication and collaboration needs but differ significantly in functionality, pricing, and scalability. This comprehensive comparison explores the essential features, costs, and advantages of Microsoft Teams vs Skype, aiming to guide businesses in selecting the ideal solution.
Microsoft Teams vs Skype
| Feature | Microsoft Teams | Skype |
|---|---|---|
| Messaging & collaboration | Offers threaded messaging, channels, and file sharing with integration to Microsoft 365 apps. Ideal for real-time collaboration with co-authoring in Word, Excel, and PowerPoint. | Provides basic messaging features but lacks structured collaboration channels and Microsoft 365 integration. Limited to basic text chat without co-authoring capabilities. |
| Voice & video calling | High-quality voice and video calling with background blur, call recording, and live captions. Can host large meetings, webinars, and events with up to 1,000 participants. | Allows voice and video calls with up to 100 participants. Suitable for small meetings but lacks advanced features like background blur and analytics. |
| Meeting features | Includes meeting scheduling, calendar integration, screen sharing, recording, and breakout rooms. Great for organised and structured meetings. | Basic screen sharing and recording options are available, but lacks breakout rooms and other structured meeting features. |
| Phone system integration | Full integration available with Microsoft 365 Business Voice, including auto-attendant, call queues, and third-party call plans. | No advanced phone system integration. Skype for Business was phased out, limiting options for businesses needing full VoIP capabilities. |
| Participant limits | Up to 1,000 participants per meeting, suitable for large conferences or webinars. | Limited to 100 participants per meeting, best suited for small groups or teams. |
| File sharing & storage | Includes 1 TB of OneDrive storage per user with Microsoft 365 plans. Supports file sharing directly in chat and channels. | Basic file sharing available but lacks extensive storage and access to shared files across the organisation. |
| Integrations | Supports integration with Microsoft 365 suite (Word, Excel, Outlook, etc.) and over 600 third-party apps (e.g., Salesforce, Trello, Asana). Highly customisable. | Limited integration capabilities, mostly with Outlook. Doesn’t support third-party apps, making it less customisable for diverse business needs. |
| Security & compliance | Offers enterprise-grade security with encryption, multi-factor authentication, and compliance with GDPR, ISO 27001, SOC 2, and HIPAA standards. | Basic encryption and security features, but lacks advanced compliance features, making it less suitable for regulated industries. |
| User interface | Modern, intuitive interface that may require a learning curve but is feature-rich and customisable. | Simple, user-friendly interface with an easy setup, suitable for users without technical expertise. |
| Cost | Starting at £4.20/user/month (Microsoft 365 Business Basic); advanced phone features with Business Voice add-on for an additional £12/user/month. Enterprise-level options available. | Free for basic Skype-to-Skype calls. For calls to landlines/mobiles, plans start from £2.40 to £5.60/user/month. Lower cost but fewer business features. |
| Ideal for | Medium to large businesses, organisations in regulated industries, and businesses already using Microsoft 365 seeking comprehensive collaboration and communication tools. | Small businesses or teams needing basic video and audio calling and messaging without advanced features or integrations. |
Overview of Microsoft Teams vs Skype
Microsoft Teams is a feature-rich communication and collaboration platform designed for businesses needing robust tools for meetings, file sharing, messaging, and integrations. It has gained popularity for its seamless integration with Microsoft 365, which is an advantage for organisations already using Microsoft products.
Skype (specifically Skype for Business) was once a prominent choice for corporate communication but has gradually been phased out, with Microsoft encouraging businesses to migrate to Microsoft Teams. However, Skype remains available as a simplified version, suitable for small businesses needing essential video and audio calling functions without more advanced features.
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Key features comparison
Messaging and collaboration
- Microsoft Teams: With threaded messaging and channels, Teams allows segmented communication within departments or projects. Team members can chat, share files, and collaborate in real-time within a secure environment. Teams also supports instant chat with GIFs, stickers, and emojis for an informal, engaging experience. Integrated document editing and co-authoring are possible with Microsoft 365 apps, making collaboration efficient.
- Skype: Primarily focused on calls, Skype offers instant messaging but lacks the structured collaboration tools and channels that Teams provides. While Skype supports basic text chat, it doesn’t integrate closely with productivity apps, making it less suitable for in-depth collaborative work.
Voice and video calling
- Microsoft Teams: Teams offers high-quality voice and video calling with features like background blur, call recording, and live captions. Businesses can host webinars, virtual events, and large meetings with up to 1,000 participants. Teams also includes an auto-attendant, call queues, and integration with third-party calling plans, making it a more comprehensive solution for enterprises.
- Skype: Skype allows video calls for up to 100 participants, which is sufficient for small to medium meetings. While the call quality is reliable, it lacks advanced features like background blur or call analytics that larger organisations might find essential. The basic Skype-to-Skype calls are free, making it a good choice for smaller teams needing simple video or voice calls.
Integration with other applications
- Microsoft Teams: As part of the Microsoft 365 ecosystem, Teams integrates seamlessly with apps like Word, Excel, PowerPoint, and Outlook, allowing users to schedule meetings, share documents, and collaborate in real-time. Additionally, Teams supports integration with over 600 third-party apps, offering flexibility for CRM, project management, and marketing tools.
- Skype: Skype offers basic integration with Outlook for scheduling calls but lacks deep connectivity with other business applications. Its limited integration capabilities can be a drawback for businesses relying on various software tools, making it less versatile than Teams.
Security and compliance
- Microsoft Teams: Security is a priority for Teams, which offers enterprise-grade security features, including data encryption, multi-factor authentication, and compliance with GDPR and other regulations. Teams also provides compliance with ISO 27001, SOC 2, and HIPAA, making it suitable for industries with strict regulatory standards.
- Skype: Skype provides encryption and basic security measures, but it lacks advanced compliance features available in Teams. For businesses handling sensitive data or working in regulated sectors, Teams is likely a better fit.
Cost comparison – Microsoft Teams vs Skype
- Microsoft Teams: Teams is included in Microsoft 365 Business and Enterprise subscriptions, with prices starting from £4.20 per user per month for the Microsoft 365 Business Basic plan. For businesses seeking advanced features such as phone system integration, the Microsoft 365 Business Voice add-on costs an additional £12 per user per month. Enterprise-level subscriptions offer even greater functionality, with prices scaling based on features.
- Skype: Skype is free for basic Skype-to-Skype calls. However, businesses needing to call landlines or mobiles can purchase Skype Credit or subscribe to Skype’s business plans, which range from £2.40 to £5.60 per user per month. While this pricing is attractive, the lack of advanced business features makes it a less robust option for organisations requiring sophisticated communication solutions.
Pros and cons
| Aspect | Microsoft Teams | Skype |
|---|---|---|
| Pros | Seamless integration with Microsoft 365, robust security, advanced call features, high participant limit for meetings, scalable for large teams | Free or low-cost for small teams, easy to use, suitable for basic calls and chats |
| Cons | Higher cost for advanced features, may require training for full adoption | Limited features, lacks advanced collaboration tools, basic security only |
| Best for | Businesses of all sizes needing collaboration and advanced call features | Small businesses or freelancers needing basic communication tools |
Which is best for your business?
- Choose Microsoft Teams if… your business requires a comprehensive communication and collaboration platform with advanced call management, security, and compliance features. Teams is best for medium to large organisations already using Microsoft 365, as it offers seamless integration and a unified workplace experience.
- Choose Skype if… your business is small, with minimal need for integrated tools. Skype’s affordability and simplicity make it a good choice for businesses looking for an entry-level communication tool without extensive features.
Conclusion – Microsoft Teams vs Skype
Microsoft Teams and Skype each serve different needs within the business communication landscape.
Teams offers robust functionality, integrations, and enterprise-grade security, making it the preferred choice for medium to large UK businesses.
Skype, however, remains a practical option for smaller teams or businesses requiring basic communication features at a low cost.
FAQ – Microsoft Teams vs Skype comparison
Microsoft Teams is a comprehensive communication and collaboration platform, ideal for businesses needing integrated tools, file sharing, and advanced features. Skype, meanwhile, focuses on basic messaging and calls, suiting smaller teams that need straightforward, low-cost communication without extensive collaboration features.
Microsoft Teams excels in integrations, connecting seamlessly with Microsoft 365 applications and over 600 third-party apps. Skype offers basic Outlook integration, but lacks compatibility with other tools, making it less versatile for businesses needing extensive software connectivity.
Skype is generally more affordable, with free calls and low-cost plans for calling mobiles and landlines. Microsoft Teams requires a Microsoft 365 subscription starting at £4.20/user/month, but includes advanced features, storage, and security, providing more value for larger businesses.
Microsoft Teams supports meetings with up to 1,000 participants, making it suitable for webinars and large conferences. Skype’s participant limit is capped at 100, which is ideal for small meetings but may not meet the needs of larger organisations.
Microsoft Teams offers enterprise-grade security with compliance for standards like GDPR and ISO 27001, making it suitable for regulated industries. Skype provides basic encryption and security but lacks Teams’ advanced compliance features, making it better suited to less regulated environments.
Yes, both Microsoft Teams and Skype support call recording. However, Teams includes additional features like background blur and live captions, making it more suitable for professional meetings and presentations compared to Skype’s more basic recording functionality.
Skype has a simple, user-friendly interface that’s easy to navigate, especially for smaller teams. Microsoft Teams offers a more complex interface due to its feature-rich environment, which may require some initial learning but offers extensive customisation and collaboration tools.
Both allow document sharing, but Microsoft Teams integrates directly with OneDrive and Microsoft 365 apps, enabling real-time collaboration on shared files. Skype supports basic file sharing in chat, but lacks advanced document management and co-authoring capabilities found in Teams.
Skype is a good fit for small businesses needing basic communication tools without extensive features. Microsoft Teams offers more capabilities for collaboration, integrations, and scalability, making it a better choice for small businesses expecting growth or requiring comprehensive tools.
Microsoft Teams generally offers more robust support, especially through Microsoft 365 Business plans that include dedicated support resources. Skype provides standard support, mostly aimed at personal users, which may not meet the needs of businesses requiring frequent assistance.