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Unified communications as a service

Unified communications as a service (UCaaS) brings together apps and services like call, chat, video, and audio conferencing into one cloud-based platform.

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  • The Calls app in Teams showing the keypad, ongoing calls and call history and contacts.

    Telephony

     Work smarter with an all-in-one app that brings together calling, chat, meetings, and collaboration.

    The Calls app in Teams where the user is receiving a call.

    Voice over Internet Protocol (VoIP)

    Make and receive audio and video calls using the internet with Teams. Stay in touch and get more done from anywhere.

    The Calls app in Teams where the user is searching a phone number.

    Public Switched Telephone Network (PSTN)

    Use Teams Phone to make external calls using direct routing, Operator Connect, and/or Microsoft Teams Calling Plans.

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  • A person standing at a desk in their home office participating in a Teams meeting where a presentation is being given.

    Meetings

    Communicate face-to-face in an online meeting, or call from virtually any device using audio conferencing features.

    A person working at their desk and participating in a Teams video call with 4 other participants on one screen and viewing architectural designs on another.

     Video conferencing

    Securely host conference calls, virtual events, or one-on-one meetings to streamline collaboration and connect on a personal level.

    An audio conferencing device in a conference room.

    Audio conferencing

    Join meetings with a dial-in number and conference ID, plus add others by dialing out using the Teams app—bringing everyone together.

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    Content sharing and collaboration

    Store, share, access, and edit content in real time with cloud file sharing and collaboration tools built into Teams.

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    In-meeting messaging

    Encourage discussion and questions during meetings using chat, live reactions, and file sharing capabilities.

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  • A hand holding a mobile phone displaying a Teams chat.

    Messaging

    Voice your thoughts and share files in individual or group messages and team channels. Then switch between chat and video calls in one click.

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    One-on-one chat

    Instantly communicate with one team member, privately share links and files, and get immediate feedback to boost efficiency and build connections.

    Mobile and desktop displays of group chats in Teams.

    Group chat

    Stay organized and collaborate more effectively. Share updates, brainstorm together, and keep everyone in the loop with centralized communication.

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  • A laptop displaying a presentation being given over a Teams meeting and a desktop monitor displaying a chat in Teams.

    Platform integration

    Make workflows more efficient with a variety of interconnected apps and services that help you collaborate across departments and connect at any time.

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    Email integration

    Share information between email in Outlook and chat or channel conversations in Teams to stay in the flow of work.

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    Contact center

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    Contact center partner integration

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  • A laptop displaying a presentation being given over a Teams meeting and a desktop monitor displaying a chat in Teams.

    Platform extensibility

    Improve workflows and business processes by integrating the apps and services you’re already using into Teams.

Read more about UCaaS for business

Unified Communications 101: What businesses need to know

Quantifying the value of collaboration with Microsoft Teams

Gartner recognizes Microsoft as a Leader in the  2022 Gartner® Magic Quadrant™ for UCaaS1

Competitive Voice Services Reliability Benchmark2

What is unified communications as a service?

UCaaS is a cloud delivery model that brings unified communications (UC)—like chat, file sharing, telephony, and video conferencing tools—into a single interface or platform.

With unified communications and collaboration, businesses gain more control over their workflows and processes, and employees stay better connected. Unified communications solutions also eliminate the need to switch between multiple communication tools, boosting workplace organization, efficiency, and productivity. 

A meeting being held in a conference room with many members joining remotely through a Teams video call being displayed on multiple screens in the room.

What does UCaaS stand for?

“Unified communications” refers to a variety of communication and productivity tools that are integrated into one platform. Common tools in UC platforms include VoIP phone, instant messaging, email, online meetings, conferencing, and calendars and scheduling.

“As a service” refers to the delivery model used for cloud services and software.  

Differences between UC and UCaaS

The main difference between UC and UCaaS is simply where the unified communications provider is hosted. UC is a broader term that encompasses UCaaS, and can be both cloud based or hosted on premise. UCaaS is only cloud based.

Because UCaaS systems are cloud based, they are typically easier to scale and more cost effective than traditional on-premises UC systems. Many UCaaS solutions operate on a monthly or annual subscription, with pricing based on tiered services and number of users. Traditional on-premises UC platforms, on the other hand, have a larger upfront investment, plus maintenance and licensing fees.

How does unified communications technology work?

UC technology uses a single interface to manage communications, allowing teams to switch seamlessly between channels—from messaging coworkers, to calling customers, to video conferencing with stakeholders. Instead of needing multiple platforms or providers for different services, UCaaS streamlines the many communication tools businesses use every day into one platform, improving collaboration and productivity.

Since UCaaS works over the internet, employees can access the tools they need on almost any device at any time. This means employees can work efficiently and stay connected wherever they are—in an office, their homes, or while traveling.

Cloud delivery model

Instead of hosting UC platforms on a traditional on-premises network, UCaaS solutions are securely hosted over the internet. This eliminates the need for on-site maintenance and technical support, and makes UC solutions faster and cheaper to deploy—which is especially helpful as businesses grow or organizational needs change. Cloud-based UC solutions are also better at supporting a mobile or hybrid workforce, which helps businesses save on both office and travel expenses.

What are essential functions of UCaaS?

A UCaaS system helps businesses improve efficiency and productivity, and helps employees stay connected from anywhere. Essential functions of UCaaS include:

  • Chat: Instant messaging helps dispersed teams connect in real time. Chat often includes features like individual and group messaging, team and project channels, and embedded file sharing capabilities for quick and convenient communication.

  • Voice: Phone services like call forwarding, conference calling, call recordings, and advanced call routing help businesses make decisions faster. In UCaaS, voice capabilities work using VoIP technology.

  • Video: Video enables online meetings for teams, allowing for face-to-face interactions even across time zones. Advanced collaboration features like screensharing, recordings, and chat help teams make the most out of this essential tool.

  • Collaboration: Collaboration features such as calendars and scheduling, file sharing, and project management tools make it easy for employees to work cross-functionally and align on goals.

Benefits of UCaaS

Effective communication is essential to businesses of any size, especially as more companies adapt a permanent hybrid and remote working model. But UCaaS helps teams with more than just virtual collaboration—it also helps business stay competitive in changing markets.

Some advantages of UCaaS include:

  • Reduced costs
    Since UCaaS is cloud based and works in one interface, companies spend less on maintenance, licensing fees, and initial installation. Businesses may also save on office and travel expenses.

  • Scalability
    UCaaS solutions simplify onboarding and make it easy to add new users as teams grow. UCaaS systems will also have the newest technology to improve businesses processes, automatically updating with new security features, tools, and apps.

  • Improved productivity
    Instead of working across several platforms, employees have everything they need in a centralized location—which improves workflow efficiency and project management. This helps teams move faster and improve work quality.

  • Flexibility
    With a variety of communication tools in one platform, UCaaS helps businesses respond and adjust to changes quickly, plus respond to customer needs faster. UCaaS also empowers employees to work from almost anywhere on any device with a reliable internet connection.

Pros and cons of unified communications technology

UCaaS comes with many business benefits, but there are some disadvantages to consider, too.

Advantages of UCaaS include:

  • Faster deployment.

  • Greater mobility for employees.

  • Cost savings.

  • Better workflow efficiency.

  • Always up-to-date technology.

Disadvantages of a UCaaS include:

  • Dependency on a strong internet connection.

  • Limited emergency calling.

  • Possible interoperability problems with existing hardware.

Best practices to move to UCaaS

Every organization can benefit by moving to a UCaaS system, but the fear of communication disruptions may be holding businesses back from making the switch. To make the transition smoother and ensure business continuity, consider the following best practices:

  1. Audit your current communication tool stack.
    When transitioning from a legacy communications system to a UCaaS platform, it’s important to identify all current communication tools employees use across teams and departments. You may find tools overlap or there are certain features you don’t use at all, which will help you make informed decisions as you move to a new UCaaS system.

  2. Assess your needs.
    UCaaS systems typically operate on a tiered services plan, so knowing what features you need and where your current gaps are is critical. This assessment period is also a chance to gather feedback from team members and learn where workflows could be improved.

  3. Alert your team and give a transition timeline.
    As you move to a UCaaS system, ensure your team understands the timeline of the switch. Will it be a phased rollout or an immediate transition? Keeping employees in the loop helps ensure they have enough time to document processes and keeps business disruption to a minimum.

  4. Access learning resources early on.
    While you can expect a learning curve as you switch communications systems, providing support and resources early on should help make the process smoother. Take advantage of learning materials provided by the UCaaS provider or conduct a training to ensure employees have everything they need once the new UCaaS system is implemented.

How to find the right unified communications provider

Investing in a new UCaaS platform provides many benefits for new and established businesses alike, but it can be challenging to compare providers and select the right UC provider for your needs. To find the best UC provider for your business, be sure to keep the following criteria in mind:

  1. Customer service
    Does the UCaaS provider have live chat or phone support always available? Will there be assistance in the initial implementation or UC migration? Is there team onboarding or continued training? Knowing what help is available if you need to troubleshoot an issue is an important element to consider when finding the best UC provider.

  2. Security
    With remote and hybrid employees working on different networks and devices, it’s important to look for comprehensive security features in UCaaS provider. Before investing, speak with a representative about the UC provider’s infrastructure with data encryption, threat management, and access permissions and controls.

  3. Reliability
    As you compare UC providers, consider the uptime history or ask to see documentation about the provider’s reliability performance. Uptime percentage should be above 99 percent. You can also check out the UC providers’ social media pages to see if there’s a pattern or history of outages.

  4. Consistent user experience
    A UCaaS system makes it easier for employees to work across devices, so having a consistent UI and UX is critical. This saves time and makes it easier for employees to navigate and manage the communication tools they use every day. It also makes it easier for IT to provide support if needed.

The future of UCaaS

Because of the COVID-19 pandemic, UCaaS technology has become a necessity for many companies—enabling teams to work remotely and remain competitive even in times of uncertainty. In the future, UCaaS will continue to be a key part of businesses’ digital transformation, helping teams improve internal processes, customer engagement, and adapt to new markets.

Growth of UCaaS since the COVID-19 pandemic

UCaaS technology is here to stay as more companies adopt a permanent hybrid or flexible working model. To meet the needs of a distributed workforce, UCaaS features are evolving at a rapid pace.

Presence cues—letting coworkers know when someone is away, in a call, or presenting—for example, have become a key aspect of UCaaS platforms. These tools also eliminate distractions and help employees maintain their work-life balance, indicating when someone is heads down, focusing, or signed off for the day. Video and chat components of UCaaS have also evolved, with new reaction features to encourage participation in discussions and better engage audiences in meetings.

Future of business communication technology

As communication technology evolves, more businesses are turning to cloud-based UC platforms to ensure they’re up to date with the latest features and security. Other trends shaping the future of business communication technology include:

AI

AI and machine learning technologies—from chatbots and smart assistants to data insights—will continue to evolve in UC platforms. In UCaaS, AI can help improve workflows by automating processes, improve accessibility with speech-to-text capabilities, and boost efficiency with intelligent scheduling and recommendations.

Integrated customer relationship tools

UCaaS is a clear win for employee communication and connection, but it can boost customer relationships, too. As business technology develops, more UCaaS solutions are providing a seamless way to improve customer experiences by integrating contact centers or customer relationship management (CRM) tools into the platform.

Advanced security

More ways to communicate and collaborate mean additional entry points for security threats. As communication technology evolves, UC platforms will continue boosting their infrastructure to make improvements in threat management, encryption services, and data protection. UCaaS may also develop security add-ons with certain industries in mind to address compliance needs.

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Frequently asked questions

  • UCaaS, or unified communications as a service, is a cloud delivery model that brings unified communications—like chat, call, file sharing, and video conferencing tools—into a single interface or platform.

  • VoIP is the technology that converts voice into a digital signal, providing a phone service over the internet. UCaaS, on the other hand, integrates a variety of communication tools like chat, call, and video and audio conferencing into a single, cloud-based platform—using VoIP for the voice communication features.

  • UCaaS is not a cloud solution but works on a cloud delivery model. This means that a UCaaS platform is securely hosted over the internet and doesn’t require onsite hosting infrastructure.

  • Benefits of UCaaS include improved productivity, streamlined workflows, better collaboration, reduced costs, scalability, and flexibility for a hybrid workforce.

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1. Gartner is a registered trademark and service mark and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Gartner, Magic Quadrant for Unified Communications as a Service, Worldwide, by Rafael Benitez, Megan Fernandez, Daniel O'Connell, Christopher Trueman, Pankil Sheth, 28 November 2022.

2. GigaOm, Competitive Voice Services Reliability Benchmark v1.0, Dana Hernandez, September 13, 2022.

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