Business phone systems

Discover how business phone systems work and how to use Microsoft Teams as a cost-effective solution.

A business phone on a conference room table showing the participants of a Teams call.
A warehouse employee wearing a neon vest using a mobile phone.

What are business phone systems?

Creating a network of phone extensions connected to one phone line is more efficient than installing separate landlines for each employee. That’s the thinking behind a business phone service.

How does a phone system work?

Install one phone line and set up as many extensions as you need. Call within your organization or externally and use features like voicemail, on-hold music, automated menus, and conference calls.

Three people participating in a meeting on Teams.
A tablet connected to a Teams meeting in a conference room and a laptop showing a presentation.

Types of business telephone systems

Choose between traditional PSTN systems, which use a landline, or VoIP phone systems, which use your internet connection. Go with VoIP for more features and device flexibility.

Phone system features

Look for clear audio and video, mobile and desktop capabilities, security and compliance features, scalability, easy installation and use, and compatibility with your email and CRM software.

A person making a call on a mobile phone through Teams.
A person using a mobile phone.

Use Microsoft Teams as your cloud-based phone system

Get started with just an internet connection and your device—it’s that fast. Connect, collaborate, and simplify work in a secure and compliant way, all in one virtual phone system.

Enjoy more flexibility with Microsoft Teams

Customize Teams to meet your needs with features like voicemail transcription, group call pickup, and shared line appearance. Use built-in tools or connect to your favorite contact center software.

The customizable toolbar in a Teams call.

Benefits of Microsoft Teams calling

Stay connected everywhere

Make and receive calls from any of your devices and easily switch between them during a call.

Save time with integrations

Collaborate in Office apps during calls and meetings—everything is in one place.

Reduce costs

Save money on equipment and maintenance. Set up employees with reliable devices for every budget.

Scale and grow

Create new business phone extensions in minutes—no need to install new wiring or handsets.

Stay productive while apart

Give employees a consistent, enterprise-grade experience that helps them focus.

Manage everything centrally

Monitor and resolve issues and view call analytics from easy-to-use dashboards.

See what customers are saying about Microsoft Teams



“We wanted to give everyone the ability to make calls through Teams, which is providing an 80% cost savings over our former system. It’s even more valuable that our people can take important calls from anywhere and at any time using any of their assigned technologies.”

Bill Wyatt
CIO State of Georgia, Office of the State Treasurer



“The clarity and quality of the Teams audio is great, and the user interface is really friendly. It’s also much more resilient when it comes to transitioning between Wi-Fi and cellular data—we no longer lose calls because we have to get up and leave our desks.”

Nathan Hieber
IT Director of Workplace Technologies, Arrow Electronics

Read more about PBX in Microsoft Teams

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