Choosing between MS Teams Free, Essentials and M365 Business can be confusing, especially for small businesses.
Each one gives different features like meeting time limits, storage, and extra tools.
In this blog, you will learn the main differences, which one is good for your team, and how to pick the best option without wasting money or missing important features.
Comparison of Teams Essentials vs Teams Free vs Teams with an M365 Business Plan
Now, let’s discuss the contrasts between these three MS Teams plans that help you determine which option may help your company the best.
Microsoft Teams Free Version
MS Teams’ free version was introduced mainly to cover the residential/home user audience, which had been absent from the Teams user base until then.
This plan supports the following:
- Unlimited group meetings (up to 60 minutes)
- Meetings of up to 100 participants
- 5GB per user (cloud) storage
- Unlimited chat
- Polling, tasks, and file management
- Chat, file, presentation, and meeting data encryption
- Co-authoring capabilities
- Custom tab for channels
The main downside of using this free version to run your business is that group video meetings are limited to only 60 minutes. The 5GB of cloud storage may also be constraining regarding service use for businesses with Teams.
Microsoft Teams Essentials
Teams Essentials is $4 per user/month and was created for small businesses that might not want to sign up for a general-purpose M365 subscription but still need an effective cloud collaboration tool to keep their team members connected and productive.
This plan includes all of the features in the free version, in addition to:
- Unlimited meetings for up to 30 hours in length
- Meeting participants up to 300
- 10GB of backup on the cloud per user
- Phone and web support anytime
The more than sufficient group meeting time (up to 30 hours) will cover all meeting needs, including all-day types! Plus, you get double the cloud storage space, and the inclusion of phone and web support means your staff always has help using the app when they need it.
Teams with Microsoft 365
The Microsoft 365 Teams version is available with any business plan. The cheapest plan is $6.00/user/month ($2 in more than Essentials).
Note that the Basic package doesn’t include downloadable Office apps (Word, Excel, etc.), just the web versions.
The next tier is M365 Business Standard, which costs $12.50/user/month, a considerable jump from the price to deploy Teams Essentials. This one includes the downloadable version of the Office apps.
These plans include:
- All of the above in the Essentials version, and:
- Office apps (online or online & downloadable)
- All the other M365 cloud apps (OneDrive, Forms, SharePoint, OneNote, and more)
- 1TB of cloud storage per user
- Webinar hosting
- Customer appointment management
- Premium security capabilities
So, if you are considering Office software and other apps, getting Teams alongside an M365 subscription is probably worth it.
But suppose your business already has the offline version of the Office suite or doesn’t need it. In that case, Teams Essentials can offer a significantly higher number of capabilities for a lower price point.
Pricing Breakdown: Teams Free vs. Teams Essentials vs. M365 Business
Finding out how much each Microsoft Teams plan costs is important for the decision-making process for businesses;
Microsoft Teams Free provides core chat, video calls and limited storage — great for small groups or personal use. Microsoft Teams Essentials, a paid, standalone plan for $4 per user/month, adds longer meetings and more storage.
On the other hand, Microsoft 365 Business plans include Teams along with more advanced collaboration tools, such as Office apps, SharePoint, OneDrive, and strong security, starting at $6 per user/month. M365 plans cater to growing businesses requiring complete productivity suites, which PHP enables them to conveniently add to the negotiating table at competitive prices for teams needing more tools than communication.
Best Use Cases for Each Teams Plan
Each of the Teams plans is designed for particular user needs, ranging from personal communication to large-scale business operations. Here are the perfect use cases to use for each plan:
Microsoft Teams Free Version
Although targeted for freelancers, hobby groups, or small teams with basic communication needs. It includes unlimited chat and video calling but has limits on the duration of meetings and storage — ideal for infrequent collaborators at no cost.
Microsoft Teams Essentials
It’s best for small businesses and startups that depend on video conferencing and require a little more capability. With extended meeting lengths, 10 GB of storage per user, and priority support, it’s a cost-efficient option for growing teams that need a dependable way to connect.
Teams with Microsoft 365
It is best for medium to large businesses that need an all-in-one productivity platform. In addition to Teams, it features Office apps, sophisticated security, and compliance tools—excellent for businesses handling sensitive data or needing collaboration at scale.
Which Microsoft Teams Plan is Right for You?
Choosing the Right Microsoft Teams Plan Based on Team Size, Collaboration Needs, and Budget
In a world where many teams need to collaborate, choosing the right Microsoft Teams plan depends on the size of the team, collaboration needs, and budget. If you’re a small group and want to chat casually, the free version may be more than adequate.
Teams Essentials is an excellent solution for small businesses requiring secure meetings and increased storage without the full M365 suite.
However, if your organization needs Office apps, email hosting, advanced security, and compliance features, investing in the M365 Business Plan would be perfect. It gives your team access to a complete suite of productivity tools built to grow with your business.
Need Help Getting MS Teams or Other Cloud Tools Set Up?
Robust collaboration tools to compete — today’s hybrid offices and remote teams need them to thrive. Contact us if you’d like help getting started with MS Teams or another cloud tool.
We’ll gladly set you up with an appropriate custom setup to help your staff get up and running!