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Microsoft Teams Licensing Guide

Microsoft Teams is available with various licensing options, catering to the diverse needs of organizations, from basic communication features to advanced collaboration tools with enterprise-level security. Understanding the licensing options, including Teams Premium, is essential to selecting the right plan for your organization.


Microsoft Teams is included in a variety of Microsoft 365 and Office 365 plans, and it can also be licensed through standalone subscriptions for businesses that only need Teams capabilities without the full Microsoft 365 suite.

TierDescriptionIdeal For
Microsoft Teams FreeBasic communication and collaboration features at no costSmall teams needing essential chat and meeting capabilities
Microsoft Teams EssentialsEnhanced collaboration tools for small businessesSmall businesses requiring more than free features
Microsoft 365 Business PlansTeams integrated with full Microsoft 365 suiteSmall to medium-sized businesses
Microsoft 365 Enterprise PlansAdvanced security, compliance, and administration featuresLarger organizations
Microsoft Teams PremiumAdvanced meeting capabilities and AI-powered featuresOrganizations requiring premium collaboration experiences

FeatureCapabilityBusiness Value
PriceFreeNo-cost entry point
Chat & SearchUnlimited chat and searchBasic team communication
Video CallingUp to 60 minutes per meetingShort video meetings
Storage5 GB cloud storage per userBasic file sharing
ParticipantsUp to 100 participants per meetingSmall team meetings
SecurityStandard security featuresEssential protection

Price: $4 per user/month

FeatureCapabilityBusiness Value
MeetingsUnlimited group meetings for up to 30 hoursExtended meeting duration
ParticipantsUp to 300 participants per meetingLarger team collaboration
Storage10 GB cloud storage per userEnhanced file sharing
IntegrationOutlook integration for meeting schedulingSeamless calendar management
CollaborationBasic collaboration toolsEssential teamwork features

Price: $6 per user/month

FeatureCapabilityBusiness Value
AppsTeams, OneDrive, web Office appsCore productivity tools
Storage1 TB OneDrive per userAmple cloud storage
MeetingsUp to 300 participantsMedium-sized meetings
SecurityMFA and conditional accessEnhanced security protection

Price: $12.50 per user/month

FeatureCapabilityBusiness Value
AppsAll Basic features + desktop Office appsFull productivity suite
Email50 GB mailbox hostingProfessional email
CollaborationSharePoint and Planner integrationAdvanced teamwork tools

Price: $22 per user/month

FeatureCapabilityBusiness Value
FeaturesAll Business Standard featuresComplete business solution
SecurityAdvanced threat protection and device managementEnterprise-grade security
IdentityAzure AD Premium Plan 1Advanced identity management

Price: $36 per user/month

FeatureCapabilityBusiness Value
TeamsAdvanced collaboration toolsEnterprise communication
AppsDesktop and web Office appsFull productivity suite
ComplianceAdvanced compliance toolsRegulatory adherence
SecurityEnterprise-level security and identity managementComprehensive protection

Price: $57 per user/month

FeatureCapabilityBusiness Value
FeaturesAll E3 capabilitiesComplete enterprise solution
SecurityMicrosoft Defender for Office 365Advanced threat protection
AnalyticsPower BI and advanced analyticsBusiness intelligence
CommunicationPhone system and audio conferencingUnified communications

Price: $10 per user/month (Add-on requiring base Teams license)

CategoryFeaturesBusiness Benefits
Personalized MeetingsCustom branding, meeting templatesProfessional meeting experiences
Advanced SecurityEnd-to-end encryption, watermarking, sensitivity labelsEnhanced meeting security
AI-Powered FeaturesLive translations, intelligent recap, meeting insightsAutomated meeting productivity
Advanced AnalyticsDeeper usage and behavior insightsMeeting optimization
Enhanced WebinarsRegistration waitlists, customized emailsProfessional webinar management

Price: $8 per user/month

FeatureCapabilityBusiness Value
Phone SystemCloud-based calling from TeamsUnified communication platform
Call ManagementForwarding, voicemail, queues, auto-attendantsProfessional call handling

Price: $4 per user/month

FeatureCapabilityBusiness Value
Dial-in AccessPhone numbers for Teams meetingsFlexible meeting access
Global CoverageMultiple country dial-in numbersInternational meeting support

Price: $15-$50 per device/month

PlanFeaturesBusiness Value
StandardBasic meeting room managementEssential room functionality
PremiumAdvanced management, monitoring, supportEnterprise room solutions

PlanPriceKey FeaturesLimitations
E3 Without Teams$31/user/monthOffice apps, 100 GB mailbox, SharePoint, enterprise securityNo Teams access
E5 Without Teams$53/user/monthAll E3 features + Defender, Power BI ProNo Teams access

Price: $5 per user/month

FeatureCapabilityBusiness Value
Full Teams AccessChat, collaboration, meetings, callingComplete Teams experience
IntegrationMicrosoft 365 app integrationSeamless workflow
PlanPriceKey FeaturesBusiness Benefits
E3 With Teams$36/user/monthAll E3 features + TeamsIntegrated collaboration
E5 With Teams$57/user/monthAll E5 features + Teams (1,000 participants)Premium enterprise solution

Organization SizeRecommended PlanKey Considerations
Small BusinessesTeams Essentials or Business BasicCore features without advanced security needs
Medium-Sized BusinessesBusiness Standard or PremiumIntegrated Office apps and moderate security
EnterprisesMicrosoft 365 E3/E5 with Teams PremiumEnterprise-grade collaboration and security

Microsoft Teams offers highly customizable licensing with various pricing tiers to suit organizations of all sizes:

  • Free and Essentials plans provide entry-level collaboration for small teams
  • Business plans offer integrated productivity solutions for growing organizations
  • Enterprise plans deliver advanced security, compliance, and analytics capabilities
  • Teams Premium enhances the experience with AI-driven features and advanced meeting management

Key Takeaway: By choosing the right combination of base plans and add-ons, organizations can create a tailored Teams solution that meets their specific collaboration, security, and compliance requirements while optimizing costs.

Consider your organization’s size, security needs, and collaboration requirements to select the optimal Teams licensing strategy for your business.