Microsoft Teams VoIP Integration: Benefits for Your Business 
19 June 2025If your business already relies on Microsoft Teams for collaboration, integrating VoIP is the next strategic step.
With Teams VoIP integration, you can unify meetings, messaging, and voice calls in one streamlined platform, eliminating the need for costly legacy phone systems.
Teams Phone continues its market leadership in cloud calling, surpassing 20 million Public Switched Telephone Network (PSTN) users – a 30% increase year-over-year.
So why stay tied to outdated infrastructure when Teams VoIP offers a scalable, flexible solution that grows with your organization?
Whether you’re managing a hybrid workforce or scaling operations globally, VoIP integration with Teams boosts productivity, reduces overhead, and simplifies IT management.
It empowers employees to communicate more effectively while helping IT departments centralize control of communications infrastructure.
Keep reading to learn how you can enhance your Teams phone system to give your business a competitive edge!
Benefits of a Microsoft Teams VoIP Integration
Rather than relying on separate applications for chat, calling, meetings, and file sharing, Microsoft Teams Voice over Internet Protocol (VoIP) integration consolidates everything into one centralized platform.
This simplifies workflows, reduces IT complexity, and increases productivity across your organization.
More and more companies are moving toward VoIP-based systems to modernize how they communicate, operate, and serve customers.
RELATED: 5 Reasons Why VoIP Solutions Are the Perfect Fit for Scaling Businesses
Let’s take a deeper look at the reasons why this integration is so valuable:
1. Single interface
Microsoft Teams VoIP integration consolidates voice calls, instant messaging, video conferencing, and file sharing into one easy-to-use application.
Imagine being able to chat with a colleague, collaborate on a document in real time, and instantly convert the conversation into a voice or video call – all without ever leaving the Teams environment.
This seamless experience reduces friction, speeds up decision-making, and enhances overall business agility. It also shortens training time for new employees, as they only need to learn one tool for all communication needs.
2. Cost savings
Transitioning from traditional phone lines to Microsoft Teams VoIP dramatically cuts telecom costs. Since calls are routed over the internet, expenses associated with long-distance, international calling, and Private Branch Exchange (PBX) hardware are substantially reduced or eliminated.
By eliminating the need for costly on-premises hardware and reducing IT maintenance, organizations experience lower capital expenditures and streamlined operations. In other words, this is a highly cost-effective solution.
VoIP also allows businesses to pay only for the capacity they need, offering flexibility in growth phases or seasonal operations.
Learn more about our Pay-As-You-Go model!
3. Facilitating remote work
As remote and hybrid work environments become the norm, communication tools must support a distributed workforce. A Microsoft Teams connector enables employees to work from anywhere using any device, all with a consistent user experience.
This ensures your teams stay connected and collaborative regardless of location, helping organizations maintain productivity, deliver high-quality customer service, and support flexible work policies that improve employee satisfaction and retention.
Remote employees also benefit from access to the same cloud-based, advanced features as their in-office counterparts, creating equal opportunities for all staff.
4. Flexibility
While Microsoft offers its own calling plans, the Teams platform also allows businesses to integrate with third-party VoIP providers, giving them more control over how their communication infrastructure is built and managed.
This flexibility allows organizations to:
- Choose preferred telecom carriers
- Tailor calling plans based on region or department
- Optimize costs while preserving functionality (no need for desk phones)
- Retain control over phone numbers, routing rules, and advanced call features
Partnering with a provider like VoIP.ms allows businesses to access competitive pricing, a rich feature set, and a higher level of customization. It’s a powerful way to future-proof your communications while maintaining total control.
5. Scalability
One of the most powerful advantages of Microsoft Teams as an added communication solution is scalability. As your business grows, your communication system can scale effortlessly to meet increased demand:
- Add users with just a few clicks
- Expand to new regions without new hardware
- Configure call flows for new departments in minutes
This level of scalability eliminates the barriers and delays associated with physical PBX systems. It ensures that your phone system evolves alongside your business, supporting rapid growth and agile adaptation.
6. Security
When it comes to business phone systems, security and compliance aren’t negotiable. Microsoft Teams VoIP integration delivers enterprise-grade protection by combining secure collaboration tools with advanced communication encryption.
Every call is protected by end-to-end encryption, making it virtually impossible for unauthorized parties to access conversations. Just like two-factor authentication protects login credentials, encryption ensures that only participants with the correct keys can access call content.
Does Microsoft Teams Support VoIP?
Yes! Microsoft Teams is more than just an internal collaboration tool. It is a fully capable VoIP phone system that supports both internal and external calling over the internet.
With Microsoft Teams Phone, users can place and receive calls over the internet to external numbers such as landlines and mobile phones.
Its intelligent call routing and call forwarding features, voicemail, calling queues, and auto-attendants enable it to function as a complete replacement for traditional PBX phone systems.
Thanks to its deep integration with the Microsoft 365 ecosystem and support for third-party VoIP providers, Teams becomes a centralized communications hub that supports on-site, remote, and hybrid work environments.
Can Microsoft Teams be used for telephone calls?
Absolutely. Microsoft Teams enables phone calls to be made directly from the cloud using any internet-connected device. This includes smartphones, laptops, and desktops.
You can transfer, forward, or hold calls just like with a traditional PBX. The big difference? Teams VoIP provides all this functionality from a cloud platform, offering greater reliability, broader accessibility, and reduced infrastructure requirements.
What Happens If I Don’t Have a VoIP Teams Integration?
Without VoIP integration, Microsoft Teams is limited to internal collaboration. It doesn’t support direct external calling, intelligent routing, or the telephony tools many businesses depend on when it comes to a communication platform.
This often forces teams to switch between multiple apps, phone systems, or devices, reducing efficiency and increasing operational complexity. Worse, it can result in missed calls, slow customer service, and a fragmented communication experience.
By integrating VoIP with Teams, you unlock:
- External calling capabilities
- Unified communication workflows
- A consistent interface across all functions
This not only streamlines operations but improves customer experience, employee productivity, and long-term scalability.
Learn more about VoIP.ms and Microsoft Teams Integration
How Does Teams VoIP Integration Help My Budget?
Investing in Teams VoIP integration isn’t just an added cost. It is a strategic move that protects and optimizes your budget.
Consider the hidden costs of traditional phone systems:
- High long-distance calling fees
- Maintenance of on-premises PBX systems
- Lost revenue from missed or dropped calls
- IT resources spent on outdated infrastructure
VoIP eliminates many of these expenses while enabling more strategic allocation of IT budgets, accelerating workflows, and supporting growth without major infrastructure changes.
RELATED: What is the cost of VoIP for small business?
VoIP.ms Teams Integration: How To Set Up Your Communications System
Integrating Microsoft Teams with VoIP.ms unlocks powerful features like advanced call routing, voicemail-to-email, and seamless call handling—ensuring every customer interaction reaches the right person, no matter where they are.
While the setup requires several steps, the VoIP.ms Teams connector makes it possible to make and receive calls, and send texts directly within the Teams app on any device. This turns Teams into a full-featured phone system, streamlining your communication and boosting productivity.
Before starting, ensure you have at least a Microsoft E1 license to activate the connector. Then, you need to follow these steps:
- Set Up VoIP.ms
- Assign Microsoft Licenses
- Request the Activation Link from VoIP.ms
- Approve Permissions
- Set Up Direct Routing
- Set Up PBX
- Add Users to the Teams Connector
Learn more about each of those steps below:
1. Set up VoIP.ms
Log in to your VoIP.ms account and create sub-accounts for each user who will access Teams VoIP. Configure user settings and permissions accordingly.
2. Assign Microsoft licenses
In the Microsoft Admin Center, give each user a Microsoft Teams Phone license. Make sure the licenses are activated, which can take up to 24 hours.
3. Request the activation link from VoIP.ms
Send an email to teams@voip.ms with the number of licenses you need and the email of the Microsoft Global Administrator. Wait for them to send you a unique activation link.
4. Approve permissions
The global administrator will receive an email and need to click the “Complete” button. Then, log in to the ConnectToTeams Portal, approve the required permissions, and sync the users.
5. Set up Direct Routing
In the ConnectToTeams Portal, go to the Direct Routing section. Make sure the Microsoft licenses are ready, choose the gateway, and finish the Direct Routing setup.
6. Set up PBX
Navigate to the PBX section and create a PBX entry using VoIP.ms credentials. This links your VoIP.ms call flows with Microsoft Teams.
7. Add users to the Teams Connector
Go to the “Users” section in the Teams Connector admin portal and manually assign users to the new PBX system.
Once set up, your business benefits from Teams’ user-friendly interface combined with VoIP.ms’ powerful telephony features, enabling seamless communication and enhanced productivity.
For more details, visit our Wiki page!
Why Should I Get VoIP Teams
Planning your communications strategy now prepares your business for growth. Microsoft Teams VoIP integration ensures your system scales smoothly without disruption as your needs evolve.
This unified platform combines collaboration and calling to lower costs, improve productivity, and simplify management, whether your team works remotely, in-office, or hybrid.
With seamless connections to leading VoIP providers like VoIP.ms, Teams becomes a comprehensive phone system that keeps your internal teams and external customers connected effortlessly.
Ready to modernize your phone system and take business productivity to the next level? Explore Microsoft Teams VoIP integration with VoIP.ms today and transform the way your organization connects.
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