Microsoft Teams vs. UCaaS Vendors: Friend or Foe? Many enterprises find that Microsoft Teams voice capabilities are still lacking in comparison to other UCaaS vendors. Customers are choosing a dedicated UCaaS vendor over Microsoft for reasons including: 9 % UCaaS vendors are more customer focused, adapting to evolving customer needs like SMS integration, while Microsoft is slower to change due to its large size and conservative approach.9 % UCaaS vendors prioritize voice features and support, knowing that customers will switch providers if they don't receive adequate support.9 % Teams' simplicity makes it a good choice for customers who do everything in Teams, but not for those who don't.9 % Microsoft Teams Voice has less country support compared to its main UCaaS competitors. Microsoft Teams + PTSN = UCaaS Research suggests that upwards of 85% of Teams users are connected to PSTN services via third-party telephony providers 8 In addition to the popular UCaaS providers, there are a variety of other Microsoft-certified vendors that can provide companies of all sizes with global telephony plans and integration with Teams. A partial list of vendors includes: CallTower, Momentum, PureIP, SCB Global, SIPPIO, Vonage, and others 8 A third-party provider is needed to enable a full experience that has native voice capabilities and number transport portability (meaning, phone numbers can be moved to different voice providers more easily), said Andy Bird, Vice President of CX at AVANT. Third parties can solve for functions such as fax, SMS, MMS, and omnichannel experiences, he explained, noting that market verticals such as retail stores, hospitality, and finance can be served out of the box since more of these vendors specialize in these use cases while Microsoft does not. Costs of Microsoft Teams versus UCaaS Vendors Microsoft Teams' popularity among enterprises is due to their integration with Office 365 and executive agreements. When it comes to adding PSTN connectivity, many are surprised by the licensing structure and the "Microsoft tax." AVANT’s John Paullin notes that most customers are on an E1 or E3 license with Microsoft, which limits their ability to make calls without paying an $8 phone system license. He also notes that there is a limited support structure and SLA enforceability with Teams, which can cause issues for businesses relying on phone systems. Copyright © 2025 AVANT Communications, Inc. 11