Software profile

Microsoft Teams

Microsoft's chat, meetings and collaboration app, available free, as a $4 standalone plan or bundled in Microsoft 365 Business plans from $7 per user.

  • Free plan
  • Per-seat pricing
  • Cloud
  • AI features
  • Independent sources

by Microsoft CorporationCollaboration SoftwareTeam chat, meetings and collaboration platform (SaaS)

Quick answer

What is Microsoft Teams?

Microsoft Teams is a chat, video meeting, calling and collaboration app from Microsoft that works with Microsoft 365, SharePoint, OneDrive and Loop, offered as a free version, a standalone Teams Essentials plan and as part of Microsoft 365 plans.

  • Best forOrganisations already using Microsoft 365
  • Team size fitSmall teams, Mid-size teams, Large enterprises
  • PricingFree version; standalone Essentials at $4 and Microsoft 365 Business Basic at $7 per user per month billed annually. Free plan available.
  • Main limitationBusiness Basic and Standard prices rose 16% and 12% on 1 July 2026, and older guides still show the old prices.
  • AlternativesSlack, Notion, Confluence
Overview

Microsoft Teams overview: who it is for and what it does.

Microsoft Teams combines persistent chat and channels, video meetings, file sharing and calling in one app that sits inside the Microsoft 365 ecosystem. It is available as a free version, as a standalone paid plan called Microsoft Teams Essentials, and as part of Microsoft 365 Business Basic, Standard and Premium and Enterprise suites. Guides describe the free version as limited to 60-minute meetings for up to 100 participants with about 5 GB of storage per user, and Essentials as extending that to 30-hour meetings for up to 300 participants with 10 GB per user.

Pricing changed in 2026 and many older guides are stale. Microsoft raised commercial Microsoft 365 prices on 1 July 2026: Business Basic moved from $6 to $7 per user per month, Business Standard from $12.50 to $14, while Business Premium stayed at $22 and Microsoft 365 E3 and E5 rose to $39 and $60. A Microsoft partner notes standalone Teams SKUs were excluded from the update, so Teams Essentials stays at about $4. Guides also report a 5% premium on annual subscriptions billed monthly since April 2026.

Teams is often the cheapest way to add collaboration for organisations that already pay for Microsoft 365, but costs can build up. Guides list Teams Premium at around $10 per user per month, Teams Phone from about $8 to $10 plus calling plans, and Microsoft Copilot at $30 per user per month. Because Microsoft has unbundled Teams from some suites, check how your specific licence includes it before assuming it is free.

Scope: Teams is sold standalone (Free and Teams Essentials) and inside Microsoft 365 Business and Enterprise plans. Microsoft has also unbundled Teams from some suites, so licensing depends on your plan and region. Teams Phone, Teams Premium and Copilot are separate add-ons.

Main problem it solves

Gives organisations one place for chat, channels, meetings, calls and shared files that connects directly to Microsoft 365 documents, email and calendars.

Typical customer segment

From freelancers and small teams on the free version, to small and mid-size businesses on Essentials and Business plans, to large enterprises on Microsoft 365 E3 and E5.

Target users

  • Organisations already using Microsoft 365
  • Small businesses that want chat and meetings at a low per-user cost
  • Larger enterprises standardised on Microsoft security and compliance
  • Teams that want meetings, chat and files in one app

Primary use cases

  • Team chat and channels
  • Video meetings up to 300 participants and 30 hours
  • Webinar hosting on Business Standard
  • Sharing and co-authoring Microsoft 365 files
  • Cloud phone calling with Teams Phone add-ons
  • Collaborative workspaces with Microsoft Loop
  • AI assistance with Copilot add-ons
  • Free meetings for freelancers and very small teams

What makes it distinct

  • Built into Microsoft 365, so chat, meetings, email and documents share one identity and storage layer
  • A free tier, a $4 standalone plan and bundled Business plans from $7 per user
  • Enterprise suites with security and compliance options
  • Optional Copilot, Teams Phone and Teams Premium add-ons
Key features

Microsoft Teams features explained.

Chat and meetings

Chat and channels
Teams provides one-to-one and group chat and channel-based collaboration.
Meeting limits
The free version supports up to 60 minutes and 100 participants. Essentials and Business plans support up to 30 hours and 300 participants.
Webinars
Business Standard adds webinar hosting features, per pricing guides.

Files and Microsoft 365

Storage
Guides report about 5 GB per user on Free, 10 GB on Teams Essentials and 1 TB per user on Business plans.
Office apps
Business Basic includes web and mobile Office apps, and Business Standard adds desktop Office apps.
Loop
Business Standard includes Microsoft Loop for collaborative workspaces.

Calling and add-ons

Teams Phone
A cloud phone system add-on is reported from about $8 to $10 per user per month, with domestic calling plans extra.
Teams Premium
A per-user add-on, around $10 per user per month, for users who host meetings that need premium features.
Copilot
Microsoft Copilot is a $30 per user per month add-on on qualifying plans, and Copilot Chat enhancements were added to Business plans in 2026.

Security and administration

Business Premium security
Business Premium at $22 adds advanced security and device management through Intune.
Email protection
Microsoft added time-of-click link protection and 50 GB of extra mailbox storage to Business Basic and Standard in 2026.
Enterprise suites
Microsoft 365 E3 and E5 add enterprise security, compliance and analytics.
Pricing

Microsoft Teams pricing and plans.

Figures reported consistently by independent sources; vendor page not reviewed directly. Checked 17 Oct 2026 against The Register · UC Today · Office Watch · BriteCity (Microsoft partner) · Jotform.

Pricing model

Per user per month by plan: free, a standalone Teams Essentials plan, or Teams as part of Microsoft 365 Business and Enterprise suites. Add-ons for Phone, Premium and Copilot are separate.

Free plan

Yes

Free trial

Not documented Trial terms were not confirmed in the sources reviewed.

Microsoft Teams plans and prices (USD)

  • Teams (free)

    $0

    n/a

    Meetings up to 60 minutes and 100 participants, about 5 GB per user and limited app integrations. No meeting recording, per one guide.

  • Microsoft Teams Essentials

    $4 per user per month billed annually

    Annual

    Standalone plan with 30-hour meetings, up to 300 participants and 10 GB per user. Not part of the July 2026 Microsoft 365 increase.

  • Microsoft 365 Business Basic

    $7 per user per month billed annually

    Annual

    Was $6 before 1 July 2026. Adds 1 TB storage, business email and web and mobile Office apps.

  • Microsoft 365 Business Standard

    $14 per user per month billed annually

    Annual

    Was $12.50 before 1 July 2026. Adds desktop Office apps, webinars and Loop.

  • Microsoft 365 Business Premium

    $22 per user per month billed annually

    Annual

    Unchanged. Adds advanced security and device management.

  • Microsoft 365 E3 and E5

    $39 and $60 per user per month

    Annual

    Enterprise suites, up from $36 and $57 on 1 July 2026.

Prices reflect Microsoft's increase effective 1 July 2026, reported by several independent outlets. Many older guides still show $6 and $12.50 for Business Basic and Standard. Guides also report a 5% premium on annual subscriptions billed monthly since April 2026, and that existing subscriptions keep old prices until renewal. Teams Phone, Teams Premium and Copilot are priced separately, and regional pricing varies.

Prices change. Confirm current plans and terms on the vendor's site before you decide.

Visit official website (external) ↗See alternatives
Integrations and compatibility

Microsoft Teams integrations, API and platforms.

Important integrations

  • Microsoft 365 apps
  • SharePoint and OneDrive
  • Microsoft Loop
  • Microsoft Copilot
  • Teams Phone
  • Outlook

Supported platforms

  • Web

API

API details were not reviewed for this profile.

Data import and export

Not reviewed for this profile.

Guides say the free version has limited app integrations. The breadth of third-party apps in Teams was not assessed in this profile.

Strengths, limitations and best fit

Balanced and sourced.

Each point cites a source. Editorial summaries are not customer reviews.

Strengths

  • A free version and a $4 standalone plan make it easy to start with chat and meetings. [5]
  • Teams is included in Microsoft 365 Business and Enterprise plans, so organisations on Microsoft 365 can use it without a separate collaboration tool. [7]
  • Meetings of up to 300 participants and 30 hours are available from Essentials upward. [7]
  • Business Premium at $22 held its price in July 2026 and adds security and device management. [3]
  • Microsoft added mailbox storage, link protection and Copilot Chat enhancements to Business plans in 2026. [2]

Limitations

  • Business Basic and Standard prices rose 16% and 12% on 1 July 2026, and older guides still show the old prices. [1]
  • Microsoft has unbundled Teams from some suites, so licensing can be confusing and may need an add-on. [8]
  • Add-ons are costly: Copilot at $30, Teams Phone at about $8 to $10, and Teams Premium around $10 per user per month. [8]
  • The free version limits meetings to 60 minutes and 100 participants and does not allow recording. [5]
  • A 5% premium applies to annual subscriptions billed monthly since April 2026. [2]

Best for

  • Organisations already using Microsoft 365
  • Small businesses that want chat and meetings at a low per-user cost
  • Enterprises that standardise on Microsoft security and compliance

May be less suited to

  • Teams that do not use Microsoft 365 and want a lightweight chat-first tool
  • Teams that need a knowledge base or wiki as the main collaboration layer
How it compares

Microsoft Teams compared with similar collaboration software.

Summaries come from each profile. This is a side-by-side aid, not a ranking.

ProductPricing modelFree planKnowledge base and docsCollaborationAI features
Microsoft TeamsPer user; standalone or bundled in Microsoft 365Yes, with 60-minute meetingsVia SharePoint, OneDrive and LoopChat, channels, meetings and callingCopilot add-on and Copilot Chat
ConfluencePer user per month by plan, annualYes, up to 10 usersStructured pages and spacesTeam spaces, guests, Jira linksRovo credits on paid plans (reported)
MiroPer member; AI credits and add-ons extraYes, three editable boardsVisual boards, not a wikiInfinite whiteboard with visitors and guestsCredit-based AI, AI workflows and Miro MCP
NotionPer member per month; guests freeYesDocs, wiki and databasesShared workspace, free guestsNotion AI bundled from Business (reported)
SlackPer user per month by planYes, with 90-day historySearchable channel history; not a wikiChannels, huddles, Slack ConnectBasic AI on Pro, advanced on Business+ (reported)

Browse all Collaboration Software →

Comparisons

Microsoft Teams head-to-head.

No published comparisons yet.

Discussions

Join the discussion.

No published discussions mention this product yet.

FAQ

Microsoft Teams questions and answers

What is Microsoft Teams?

Microsoft Teams is a chat, video meeting, calling and collaboration app from Microsoft. It works with Microsoft 365, SharePoint, OneDrive and Loop and is available free, as the standalone Teams Essentials plan, or as part of Microsoft 365 Business and Enterprise plans.

How much does Microsoft Teams cost?

The free version costs $0. Microsoft Teams Essentials is about $4 per user per month billed annually. Teams is also included in Microsoft 365 Business Basic at $7, Business Standard at $14 and Business Premium at $22 per user per month billed annually, after the 1 July 2026 increase.

Is Microsoft Teams free?

Yes. Teams has a free version with meetings up to 60 minutes and 100 participants, about 5 GB of storage per user and limited integrations. Recording is not available on the free version. Teams Essentials at $4 extends meetings to 30 hours and 300 participants.

Did Microsoft 365 and Teams prices go up in 2026?

Yes. Microsoft raised commercial Microsoft 365 prices on 1 July 2026. Business Basic rose from $6 to $7, Business Standard from $12.50 to $14, E3 from $36 to $39 and E5 from $57 to $60. Business Premium stayed at $22, and standalone Teams SKUs were excluded.

What is the difference between Teams Essentials and Microsoft 365 Business Basic?

Essentials ($4) is a standalone Teams plan with 10 GB of storage per user and no Office apps. Business Basic ($7) adds 1 TB of storage, business email, SharePoint and web and mobile Office apps. Business Standard ($14) adds desktop Office apps, webinars and Loop.

How much does Microsoft Teams cost for 25 users?

At reported annual prices, 25 users on Teams Essentials cost $100 per month ($1,200 a year), on Business Basic $175 per month ($2,100 a year) and on Business Standard $350 per month ($4,200 a year). Teams Phone, Premium and Copilot add-ons are extra.

Is Microsoft Teams included in Microsoft 365?

Teams is included in Microsoft 365 Business Basic, Standard and Premium and in several enterprise plans, but Microsoft has unbundled Teams from some suites and sells separate SKUs. Existing customers who bought before the change generally keep their entitlement at renewal, so check your licence.

What does Microsoft Teams Phone cost?

Guides report Teams Phone from about $8 to $10 per user per month, with domestic calling plans adding roughly $12 to $16 per user per month. Prices vary by region and plan, so confirm with Microsoft or a partner.

Is Microsoft Teams better than Slack?

Teams is attractive for organisations already on Microsoft 365 because chat, meetings and files share one ecosystem. Slack focuses on chat-first collaboration and integrations. See the Slack profile and compare your integrations and licensing needs.

What are the best alternatives to Microsoft Teams?

Slack is the closest chat-first alternative. Notion and Confluence cover documentation and knowledge work rather than chat and meetings. See the linked profiles for side-by-side summaries.

What integrations does Microsoft Teams support?

Documented integrations and ecosystem items include Microsoft 365 apps, SharePoint and OneDrive, Microsoft Loop, Microsoft Copilot, Teams Phone, Outlook. API details: API details were not reviewed for this profile.

What are the limitations of Microsoft Teams?

Business Basic and Standard prices rose 16% and 12% on 1 July 2026, and older guides still show the old prices. Microsoft has unbundled Teams from some suites, so licensing can be confusing and may need an add-on. Add-ons are costly: Copilot at $30, Teams Phone at about $8 to $10, and Teams Premium around $10 per user per month.

Which platforms does Microsoft Teams run on?

Microsoft Teams is documented as available on: Web.

When was the Microsoft Teams profile last verified?

Sources for this profile were last reviewed on 17 Oct 2026. 8 sources are listed under Sources, and prices and plans can change, so confirm with the vendor.

Sources and freshness

Where this information comes from.

  1. Microsoft 365 boosts prices in 2026 to pay for more AI and security The Register Third-party Accessed 17 Oct 2026
  2. Microsoft 365 Prices Rise on 1 July: What IT Teams Need to Do Before the Deadline UC Today Third-party Accessed 17 Oct 2026
  3. Microsoft 365 Business Price Increase: Who Pays More in 2026 Office Watch Third-party Accessed 17 Oct 2026
  4. Microsoft 365 price increase July 2026 BriteCity (Microsoft partner) Third-party Accessed 17 Oct 2026 A Microsoft Solutions Partner summarising Microsoft's published tables. States that Copilot and standalone Teams SKUs were excluded from the update.
  5. Microsoft Teams pricing Jotform Third-party Accessed 17 Oct 2026
  6. Microsoft Teams pricing Chanty (a competitor) Third-party Accessed 17 Oct 2026 Published by a competing vendor. Used only to corroborate plan prices.
  7. Microsoft Licensing: Teams Pillar Guide 2026 Redress Compliance Third-party Accessed 17 Oct 2026
  8. Microsoft Teams pricing 2026: License changes guide eesel AI Third-party Accessed 17 Oct 2026

Further official pages: Microsoft Teams (external) · Microsoft 365 Business plans and pricing (external)

Secondary-source profile. Vendor pages were not reviewed directly for this profile. Facts and prices are corroborated across independent third-party sources and may differ from the vendor's current pages. Confirm with the vendor before buying.

Plan prices are corroborated across several independent outlets, including coverage of Microsoft's 1 July 2026 price update. Microsoft's own pages were not reviewed directly, regional pricing and add-on prices vary, and capabilities were not tested.

Stack18 has not tested this product or received anything from the vendor for this profile. Editorial summaries of vendor information are not endorsements. Confirm details with the vendor before buying.

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