Video Conferencing Software

Microsoft Teams: features, pricing and who it fits

Checked October 24, 2026 · microsoft.com

Microsoft Teams is sold alone as Teams Essentials at $4 per user monthly or inside Microsoft 365 plans. Essentials and Business allow 300 attendees, while larger plans allow 1,000. Teams Rooms need a separate license, and reviewers describe the client as heavy.

Who Microsoft Teams is for

Best for

Organizations already on Microsoft 365 and Entra ID
Small businesses wanting meetings for up to 300 people at about $4/user/month

Look elsewhere if

Teams wanting a lightweight tool; reviewers report slow, resource-heavy clients
Buyers needing group video calls beyond 20 people from a chat

Fit by company size

Category	1-10 people	11-50 people	51-500 people	500+ people
Video Conferencing Software	Strong fit	Strong fit	Strong fit	Strong fit
Team Chat and Messaging Software	Workable	Strong fit	Strong fit	Strong fit

Strong fitWorkablePoor fitNo data from the vendor

Microsoft Teams features

Pricing model: Per user, bundled with Microsoft 365 or standalone Essentials
Target company size: Small businesses (Essentials, Business) to enterprises (E3/E5)
Participant and meeting length limits: 300 on Essentials and Business plans; 1,000 on F1/F3/E3/E5 and similar; breakout rooms only up to 1,000 attendees; meetings and events capped at 30 hours
Security and compliance: Built on Entra ID and Microsoft 365 compliance; certification list not confirmed by the vendor
Recording and AI transcription: Recording max 4 hours or 1.5 GB, then restarts; recordings not uploaded stay downloadable 20 days
Calendar and chat integrations: Tight Outlook and SharePoint integration; files stored in SharePoint (up to 250 GB per file)
Webinars and large events: Webinars and town halls (Teams events) available on Business plans; webinars/events on Business Standard and Premium per footnote
Meeting room and hardware support: Teams Rooms licensed separately
Channels and threading: Standard, private and shared channels; up to 1,000 channels per team; teams up to 25,000 members
Built-in video and huddles: Calls from chat up to 20 people; meetings up to 300 people on Essentials and Business plans, up to 1,000 on enterprise plans
Search and message history limits: Chat stored in Exchange Online mailboxes; admin search and hold needs Exchange Online mailbox
App integrations and bots: Teams apps available on Business and Enterprise plans; Loop integrations
Guest and external access: Shared channels support external participants with Entra work or school accounts only
Security and admin controls: Built on Entra ID and Microsoft 365 compliance; certification list not confirmed by the vendor
Pricing model and transparency: Per user, bundled with Microsoft 365 or standalone Essentials

Microsoft Teams pricing

Plan	Price	Unit	Notes
Teams Essentials	$4.00	per user/month, paid yearly	Standalone; meetings up to 300 people
Microsoft 365 Business Basic	$7.00 paid yearly; $8.40 monthly billing	per user/month	Includes Teams; $5.40/user/mo paid yearly variant without Teams

USD figures are from Microsoft US pages (teams pricing page and Business Basic page). One Malaysia-locale page showed $2.00 for Essentials, which is a regional price. Business Standard and Premium prices are not included here.

Prices as published by Microsoft Teams on the date above. Quotes for larger teams often differ, which is what a request on SaaSBid surfaces.

Pros and cons

What users like

Easy to use, strong file sharing and communication features
Tight fit with Microsoft 365

Common complaints

Performance issues and heavy resource use
Complicated interface, slow loading

Integrations, security and hosting

Worth knowing before you buy

Teams Essentials ($4/user/month) is cheaper than Business Basic ($7) but does not include the rest of Microsoft 365 apps
Meeting cap is 300 people on Essentials and Business plans, 1,000 on enterprise plans
Teams live events retired June 30, 2026; events scheduled earlier run until Feb 28, 2027
Admin chat search and legal hold need users to have Exchange Online mailboxes
Audio conferencing, Teams Phone and Premium are separate licenses