skype for business plan 1 vs 2

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Skype for business online plan 1 vs plan 2

Split from this thread.

How about fix the website, or bring it to the attention of the right department.  Look at this page

https://products.office.com/en-us/skype-for-business/online 

What is plan 1 and plan 2?

The article you linked to does not answer this question, at least not in a clear and concise way.  This is regarding to standalone skype plans. 

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Hi Connectgo,

The standalone plans can be added to Business and Enterprise service family plans that don’t already include them. The feature of Skype for Business Online plan1 and Skye for Business standalone plan 1 is the same. So, you can see the difference between   them from that article.

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Skype vs. Skype for Business: Who can stick with the free app, who needs to upgrade

Now there are two Skypes for online videoconferencing: the free, consumer version most of us know, and  Skype for Business . This rebranded, redesigned Microsoft Lync takes the look and feel of the consumer Skype we all know and applies it to the enterprise. 

Contact management in Skype for Business, as with the standard Skype client, puts status and availability information right at your fingertips.

Even though the two applications often appear virtually identical now, they are different—and not just because Skype for Business, like Lync before it, costs money. Skype for Business offers capacity and productivity advantages geared for businesses that are big—or that want to look big. For a business with any of the following needs, graduating from free Skype to Skype for Business provides a worthwhile return on investment.

1. You want to have very large meetings

The standard Skype client is currently limited to 25 people on a conference call at once. Skype for Business raises this limit to 250, making it much more suitable for large-scale presentations like all-hands meetings or live webinars. Participants in either Skype or Skype for Business meetings need not be using a Skype client to join the meeting–both services support calls from landlines and standard mobile phones–but extra fees still apply for dial-in users.

2. You want to integrate easily with Office apps

One big draw of Skype for Business is how it’s being integrated into Office 365. Essentially this means you’ll be able to use Outlook directly with Skype for Business’s IM, voice, and video features, clicking directly on a contact to initiate a conversation with them or schedule a meeting for later. Outlook will also archive your Skype for Business meeting history with each contact. Other Office 365 apps get in on the action, too. Want to collaborate on a PowerPoint presentation or Excel spreadsheet on the fly? You’ll be able to initiate a conference and share your screen without having to leave the program.

3. Security and permissions are a concern

Though it doesn’t mean your VoIP calls are bulletproof against eavesdroppers, all Skype traffic (both standard and Skype for Business) is encrypted with AES. Skype for Business raises the stakes with stronger authentication methods that give you, as the administrator, stronger control over accounts and access to the who can do what with the tool. Subscriptions can be added and removed at the user level, with different program features assignable to each user on the service.

Skype for Business conferences include everything at a glance—screen sharing, text chat, and individual control over participants’ microphones.

4. You want a sophisticated conference room setup

To set up a snazzy dedicated videoconferencing room so, say, two satellite offices can communicate over video with each other, Skype for Business is a much better bet. Lync was built with these types of setups in mind, and the new Skype Room Systems will let you use Skype with standalone cameras and monitors, audio gear from Polycom, and the Microsoft Surface Hub for online whiteboarding via ink or touch. Existing Lync Room Systems can be upgraded to Skype Room Systems. Skype for Business will also be able to integrate with a number of enterprise-class PBX systems, letting you route calls more easily over VOIP using your existing phones.

5. ‘Online Plan 2’ offers great features for the price

Skype is free, but Skype for Business will cost you. There are two basic plans available for smaller companies. “Online Plan 1” costs $2 per user per month (with a yearly contract) and covers only the basics. Fundamentally you get very little over standard Skype with Online Plan 1, though.

You get significantly more with “Online Plan 2,” a $5.50/month service. It adds high-definition video to group conferences, the ability to join meetings from a web browser (including anonymous connections), desktop sharing and remote control, Outlook schedule integration, the ability to record meetings, and more.

For more sophisticated setups–including conference room integration, E911 support, and dial-in audio features–you’ll need a Skype for Business Server and likely a third-party integrator to do the job. Prices at that level will vary.

Skype vs Skype for Business: Which one do you need?

We compare the VoIP classic to its enterprise successor

Skype has by now gained ubiquity as perhaps the best-known VoIP and video calling service. After purchasing Skype in 2011, Microsoft rebranded its business telephony package Lync as ‘Skype for Business’, promising enterprise-grade communications solutions as part of the Office 365 package.

But is Skype for Business really good enough to de-throne its more popular older brother? We put the two services head to head to find out.

The primary advantage Skype has over Skype for Business is obviously the fact that it’s free. Anyone can download Skype and use it for instant messaging, video calls and VoIP services free of charge.

The only thing that does cost money is making phone calls to non-Skype numbers, such as mobiles and landlines. For actual phone calls, users must pay connection fees, either on a pay-as-you-go basis or via a monthly subscription.

These plans range from 400 minutes from £3.59 per month, unlimited UK minutes for £4.79 per month, unlimited calls to the UK, Ireland, Canada and the US for £5.99 per month, or unlimited worldwide calls for £10.19 per month.

Standalone Skype for Business plans are available from £1.30 per user, per month, based on an annual commitment. This basic package nets customers basic Skype for Business functionality but does not include some of the more impressive extras like desktop sharing and the ability to record meetings.

If users want the full range of features available from Skype for Business, they’ll have to opt for the more expensive plan, which clocks in at £3.40 per user per month – once again, charged annually.

There are also a few additional features available to businesses running the server-based version of Skype for Business, such as interoperability with other video teleconferencing systems and persistent chat.

However, while these standalone plans are available, anyone with a subscription to Office 365’s Business Essentials or Business Premium plans has access to Skype for Business as part of their package, free of charge. It’s also included in ProPlus and Enterprise tier subscriptions.

Platform compatibility and maximum number of users

Considering Skype has been around for so long in its standard iteration, it's not surprising it's available on pretty much every platform under the sun - including Windows, Mac, iOS, Android and even in-browser. IT works fantastically well on each and every platform and that's thanks to its heritage as one of the world's most used free VoIP apps.

However, Skype for Business doesn't have that same history and as a result, users may be a little disappointed that it's only available on Windows-based mobile and desktops. Although an iOS and Android app is available for iPhone and iOS users, it isn't a fully-fledged version like its retro counterpart, but takes away some features such as viewing shared PowerPoint slides.

The Skype for Business application for Mac was released in June this year, so although it was rather late to the party compared to the original Skype application, which was available almost instantly on Mac computers, at least it's pretty much available across the board now.

Where the two versions do differ quite substantially is the number of users supported. The original version of Skype only supports up to 20 users at one time, making it a pretty useless app if you want to have a companywide conversation.

Although you'll find it good enough for teams, you'll probably want to seriously consider Skype for Business if you need to put your whole business in touch. As it's designed for organisations, it supports conferences of up to 250 people and if you need to go one step further, you can use it to broadcast to up to 10,000 people online.

Features and security

Naturally, Skype for Business is sporting all of regular Skype’s features, including instant messaging, high-definition voice and video calls, and file transfer capabilities. They’ve been beefed up and tweaked for enterprise use, but the core functionality remains largely unchanged.

As part of Microsoft’s stable of core products, the company is also heavily pushing Skype for Business’ integrations with the rest of the Office portfolio. Calls and meetings can be launched in seconds from within the Office applications, OneNote can be used for sharing screens and notes within calls, and Skype for Business will link with Outlook to set up meetings in advance.

Skype for Business also has a financially-backed service license agreement, which guarantees 99.9 per cent uptime for customers. While Skype offers a reliable service, it lacks this type of ironclad commitment.

The two products also run on different servers to each other, as demonstrated by a 15 hour Skype outage in September 2015 that failed to impact business users. Due to the considerable power of Microsoft’s Azure cloud infrastructure, Skype for Business users are unlikely to be troubled by similar availability woes.

Like all Office 365 traffic, Skype for Business activity is encrypted via TLS, ensuring that your communications can only be read by the intended parties. The software also supports the archiving of instant messages and uploaded meeting content, via Microsoft Exchange.

Naturally, another benefit of choosing the business offering instead of the consumer-facing product is the increased management and compliance capability it grants. This allows corporate IT departments to effectively manage access across a wider network, rather than invoking the specter of ‘shadow IT’ by giving everyone individually-managed accounts.

However, Microsoft is building out the latest version of vanilla Skype for desktop, currently being pushed out in a preview form for Windows 10 users. While the preview update brings a host of new features and tweaks, the most notable change to the traditional desktop experience of Skype is the adoption of the design language and interface Microsoft brought to its mobile version of Skype. Reception to this new interface has not been overwhelmingly positive, so it could see people opt for Skype for Business for the time being, but Microsoft is happy to accept feedback and is likely to tweak the user interface a little more.

The preview of the new desktop version brings in Slack-esque ‘@mentions’ with the goal of making it easier for users to be clear on who they wish to engage with or share a document with when using a group chat. Microsoft has also added in a media gallery so that users can easily spot the links, documents and other content that has been shared with them in a group chat. Furthermore, the new desktop take on Skype has the ability to add a layer of customisation to group calls, allowing users to adjust the layout of the callers in their chat and use emojis to further express themselves. These features tread the line between consumer and business use, with the goal of making communication and sharing in the standard version of Skype an easier process.

For those working in small, self-contained teams, the basic consumer version of Skype is likely to be more than adequate. It’s used worldwide by millions of people, both for work and pleasure, and supports all the same core functions as its enterprise counterpart. It also has the advantage of being supported on a wider variety of devices.

For those who want to deploy Skype across an entire company or building, though, the increased capabilities in terms of management and concurrent users mean that Skype for Business is the better option. It may also be an easy option for businesses that already have Office 365 subscriptions.

Given a choice between the two, however, standard Skype presents greater value-for-money for most teams – after all, it’s free. Skype for Business doesn’t offer quite enough useful additional features to justify the extra expense, although it may be slightly better-suited in some cases.

This article was originally published on 09/12/2015. It has been updated since then, most recently on 17/05/2016, to include new information.

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Skype for Business Licensing – On Premise vs Cloud, OpEx vs CapEx, Common Area Phones, and Piecemeal Approaches

Microsoft Teams has now completely replaced Skype for Business as the communication and collaboration app for Office 365. Please see our guide on Teams licensing for the most up-to-date information about Microsoft Phone System solutions and licensing.

Last year I wrote this compilation of all the different ways Skype for Business could be licensed from the great deal of research I needed to perform constantly based on different client scenarios. This blog had a great deal of interest, and in classic Microsoft fashion, there have been a great deal of changes since it was posted, so I decided it’s time to update the content.

There are a number of ways to license Skype for Business/Teams for  on-premises, hybrid , and cloud-based deployments . I’ve spent a great deal of time working with Microsoft to come up with the different options available for Skype for Business Licensing, so I’ll explain my findings and the best ways to leverage them.

Skype for Business Licensing for On-Premises Deployments

I’ll start out with a simple breakdown of all of the Client Access Licenses (CAL) for On-Premises deployments of Skype for Business (using list prices as of 2/15/2018):

• Standard CAL: enables users for Presence, IM, peer-to-peer VoIP, and HD Video
• Enterprise CAL: gives users the ability to schedule meetings for audio/video conferences with desktop and application sharing and dial-in conferencing
• Plus CAL: enables PSTN in/out, emergency calling, and other enterprise-grade phone features
• Skype for Business Client: allows users to download the local client onto PCs for leveraging the toolset. This comes with Office Pro Plus and other versions provided through Office 365 plans

Office 365 Skype for Business Licensing

Now we’ll look at the various plans available on a monthly subscription version through Office 365 . Keep in mind, not all of these plans apply to both the On-premises and Online only solutions, which we’ll get into later:

• Skype for Business Online (Plan 1): Basic standalone plan for Skype for Business Online. This plan does not include the local client download, and users would need to use the web application version to access the features. In addition, it does not allow users to create and schedule Online meetings. This provides rights to the Standard CAL for on-premises deployments, and is included within the Office 365 Business Essentials, Business Premium, and Enterprise E1 plans.
• Skype for Business Online (Plan 2): All the functionality of the Skype for Business Online Plan 1, but also gives users the ability to create and initiate Skype for Business Online and on-premises meetings. Keep in mind, this doesn’t provide PSTN conferencing online, as that would require the PSTN conferencing add-on. It does however provide the licensing needed to schedule the PSTN conferencing if the organization has a 3 rd party Dial-in Audio Conferencing solution (example: IntelePeer providing a SIP conferencing service). This subscription also does provide the local client so the users can use the full Skype for Business client.
• Microsoft Phone System (Previously Cloud PBX):  provides the ability for a user to receive and transfer calls. They would be able to call any colleagues or peers also using Skype for Business, but would need an additional add-on to be able to make outbound calls using Microsoft as the PSTN calling provider. Phone System is available as an add-on SKU, or is included within the Office 365 E5 plan. In order to use the Phone System plan, the user needs an Enterprise Office 365 subscription (E1, E3, E5)
• Microsoft Calling Plan (Previously PSTN Calling):  provides users the ability to make outbound calls using Microsoft as the voice provider. Calling Plan is available for purchase as unlimited domestic per user, unlimited domestic AND international per user, or consumption based if certain groups of users will be making fewer outbound callers
• Microsoft Audio Conferencing (Previously PSTN Conferencing):  Provides the ability to create a Skype for Business Online meeting that contains a PSTN dial-in number for users to call into. This can be added to nearly all Office 365 subscriptions (including Business Premium or Skype for Business Online Plan 2 Standalone), but is also included with the Enterprise E5 plan
• Skype for Business Plus Add-on : This provides the same functionality as the Skype for Business Plus CAL for on-premises deployments of Lync/Skype for Business, but is provided in an OpEx approach similar to Office 365. This would be added to users with an E3 subscription in order to get the exact functionality that was provided by the Office 365 E4 plan.

There are a few other applicable add-ons, but this list is a relatively simple compilation of the most relevant features and plans available for Skype for Business Licensing. One thing that helps is to come up with different use cases that would help determine the best route to license users.

Example #1: Company has Skype for Business On Premises with Enterprise Voice and is using Exchange Online for Email.

In this case, the organization would need to have some sort of Office 365 subscription for the email functionality, but they have options for how to license Skype for Business. For a company with a preference for pure Operational Expenditures, this way would be the best route for their Skype for Business Licensing:

Office 365 E3 @ $23/user/month (which covers the Skype for Business Standard and Enterprise CALs) + the Skype for Business Plus CAL @$2/user/month. The Skype for Business Front End servers would still need to be licensed, but I’m just going to focus on end users.

If this organization preferred the Capital Expenditure model, then they would need to purchase Exchange Online Plan 2 (or another plan that leverages this subscription as the Exchange Online portion), as well as the Skype for Business Standard, Enterprise, and Plus CALs. This would be a mixture of the OpEx and CapEx models, but would still be more heavily CapEx, at least the Skype for Business side.

Example #2: Company has Skype for Business Online for Enterprise Voice and using Exchange Online for Email

In this case, the organization is relying entirely on Microsoft’s subscription-based services, which would be entirely OpEx. I will preface this with the caveat that I do NOT recommend this first approach, but if I’m breaking it down as granularly as possible, this is how it can be accomplished. With this in mind, here’s the piecemeal method of the various components needed to yield a pleasant user experience:

• Office 365 E1 – Base license that’s needed for other add-ons.
• Exchange Online (Plan 2) – Allows for email online and Plan 2 provides voicemail capabilities in Exchange Online
• Skype for Business Online Plan 2 – Provides the Skype for Business client
• Phone System Add On
• Calling Plan (Domestic, International, or Consumption)
• Audio Conferencing (if user will be scheduling conferences)

Starting from the itemized list can help determine the best way to package users. Let’s start from the high technology user approach, and license in the simplest model:

• Skype for Business Online (Plan 2)
• Exchange Online (Plan 2)
• Phone System
• Audio Conferencing
• Domestic Unlimited @ $12/user/month
• Domestic & International Unlimited @ $24/user/month
• Consumption – Calculated based on country of origin, country of termination, etc.

If the organization only wants to call domestically, this puts the OpEx cost at $50/user/month. Keep in mind, that the Office 365 E5 subscription comes with a great deal of additional value on top of Exchange Online and Skype for Business Online. There’s a plethora of security and collaboration benefits that should be looked at before dismissing this as a viable option (Power BI, Advanced Threat Analytics, etc.).

For the same situation, c ertain organizations simply want their users to have the ability to send/receive emails, send/receive calls, and have local downloads of Office. These organizations may not need their users creating conference calls, and may not see value in the additional security components that come with E5. For these organizations, the below may be a better approach:

• Phone System Add-on @ $8/user/month

Keeping consistent with going Domestic only for calling, this puts the organization at $43/user/month. This saves a bit on the E5 route, but for organizations that keep their email security and business intelligence needs outside of Microsoft, this may be the best route.

Non-Recommended (Though Possible) Methods of Skype for Business Licensing

I will preface that these remaining options are “technically” supported ways to license users, but I will say that we have never gone with any of these routes, as this adds massive amounts of complexity trying to understand how users are licensed and managed by the administrative team. I simply want to provide these options as they are possible, but they may not yield a desirable end user experience.

Calling and Email Functionality Plus Office Online Apps

If an organization has a user base that is very limited in its technology needs, there are a couple of options that would be a bit cheaper than the previous two routes. Again, I wouldn’t advise going this route, but in theory they are doable.

• Office 365 Enterprise E1 Plan @ $10/user/month
• Exchange Online Plan 2 @ $8/user/month (allows voicemail to be stored in Exchange Online)

This is not an ideal approach to Skype for Business licensing, as you would be paying for both Exchange Online Plan 1 and 2, and your users would still be unable to have local downloads of office (unless those have been previously purchased in something like Open Business or OEM). This option comes out to $38/user/month, and I would advise against going with this route. These users would still be able to use the online versions of the Office suite in case the organization needs them for editing/viewing documents and spreadsheets.

Cheapest Possible Licensing Combination to get Voice Solution

Getting someone at Microsoft to put this in writing was nearly impossible, but I have confirmed that it is possible to get the add-on SKU’s put onto just the Skype for Business Online Plan 2 standalone plan without the need of an Enterprise Plan. Here’s the breakdown of what that licensing looks like, should the client ONLY want Skype for Business for voice (without Audio Conferencing):

• Skype for Business Online – Plan 2 @ $5.50/user/month
• Phone System Add-on – $8/user/month
• Consumption plan option, using Communications Credits in a non-unlimited fashion

Keeping with Domestic calling, this puts the price at $25.50/user/month to have the ability to use Skype for Business Online to make and receive calls. This will provide users with the full local client of Skype for Business, as well as the ability to use a supported desk phone. One key piece that this DOES NOT include is the ability to use Voicemail, as that comes with Unified Messaging and requires Exchange Online Plan 2 in some form. If that is required (which it is in most cases), users will need that plan @$8/user/month, bringing the total to $33.50/user/month. When I look at the additional value that the E3 approach above provides for the additional $9.50/user/month, it becomes a no brainer to go with the E3 route.

Common Area Phones

For a common area phone that’s not a true Skype Room System, there are ways to provide functionality that does not require assigning a license. AudioCodes has provided information in their support forums stating “Common Area Phone (CAP) online support phones can now be defined as CAPs when using a cloud PBX. Defined per physical phone rather than per user, a CAP requires a special sign-in method called ‘CAP Provisioning’ exclusive to Cloud PBX. Before signing in, users must enable the phone as a CAP and then sign in using this special ‘CAP Provisioning’ method. CAPs in server mode are unchanged. The change applies only to Cloud PBX.”

Jeff Schertz has written a fantastic blog about how to assign the licenses and get them setup in your environment, found here . 

As of March, 2018, Microsoft has finally released a dedicated SKU for Common Area Phones, coming in at $8/user/month, and is available within the Office 365 Admin portal under the “Other Plans” section. This should greatly simplify things, and allow the devices to show in the reporting and management toolsets.  This license however still requires a calling plan if it needs to dial out, so if it will be used outside of simply joining Skype for Business Conference bridges, it will require a calling plan ($12/phone/month), making each phone $20/phone/month with the two licenses.   

Skype for Business Voice and Microsoft 365

With the Microsoft 365 bundles available today, the complexity does not increase greatly. For the scenarios above, below are the impacts for organizations needing to leverage the full voice capabilities of Skype for Business Online:

• Microsoft 365 Business – Need to upgrade to the Enterprise options in order to provide the add-ons as of today
• Microsoft 365 Enterprise E3 – Need to purchase the Phone System, Calling Plan, and Audio Conferencing Add-ons for additional functionality
• Microsoft 365 Enterprise E5 – Need to purchase the Calling Plan for additional functionality
• Microsoft Teams

With the onset and future of Teams, a great deal of focus is around planning the transition to Teams from Skype for Business Online, which many organizations are concerned about. Currently, Teams is available for Office 365 subscriptions, with enterprise voice capabilities available as well. There is a great deal available from a feature standpoint, with a great deal more scheduled to roll out in Q2 CY2018. The licensing is planned to be consistent with Skype for Business, so the above scenarios should hold true, but I will update accordingly. To see the roadmap, as well as all resources I’ve used to build this blog, please follow the links below or feel free to comment!

If you would like to discuss the licensing options further, I would be happy to discuss what I know. Just shoot an email to [email protected] , and I’ll reach out to you directly.

Martin Feehan , Director of Client Relations, PEI

This blog was updated to reflect license price changes that Microsoft implemented on March 1, 2022.

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Skype for Business: The Ultimate Guide

• By James Ward
• 5 years ago

Skype for Business: The Ultimate Guide Skype for Business is a UC system (Unified Communication system) that integrates the well-known business communication channels. This consists of video, instant messaging, voicemail, file transfers, video conferencing, web conferencing, email, and VoIP (voice over IP). Skype for Business was originally called Microsoft Lync & there is still a […]

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Seamless Skype for Business Upgrade to Teams – A Complete Guide

In July 2019, Microsoft announced that Skype for Business Online is retiring on July 31, 2021. This means that after its cutoff date, it will no longer be accessible or supported. To maximize benefits and ensure that your organization is given proper time to deploy your Skype for Business upgrade to Teams, it's best you begin your journey to Microsoft Teams today.

Built exclusively to integrate with the Microsoft 365 ecosystem, Teams is  highly likely  to surpass and replace Skype for Business in terms of adoption and functionality.  The Skype for Business upgrade to Teams  may not entirely mean a 1-to-1 transition, but it's an upgrade  mode that delivers a lot of value.

Microsoft  Teams vs Skype for Business Online

Extending the capabilities of  SFB , t he latter service from Microsoft brings together chat , meetings, calling, collaboration, app integration, and file storage into a single interface. This new  central hub and collaboration tool for teamwork  can help streamline the way users get things done, improving  customer  satisfaction and accelerating business outcomes. Microsoft is constantly expanding the capabilities, enabling  Teams user s to communicate and  collaborate internally or with external party  in new ways, break down organizational and geographical barriers, and drive efficiency in process and decision making. 

As we all know,  both the services under consideration  would do the basic things quite smoothly i.e., Calling, Chatting or Meetings etc. But one certainly would be curious to know what are the extras that come w ith the new service of Microsof t which makes it a better and refined  mode   to upgrade to for their company .  So, let's have an incredibly detailed look at the feature difference between the two.

The features comparison information is primarily collected from Luca’s Skype for Business and Teams Features Comparison Table shared over TechNet gallery.

Skype for Business Upgrade to Teams

A flourishing technical environment, sustained user adoption, and the understanding of your business goals all begin with proper planning. A solid plan gives you a framework for your upgrade and makes sure that all stakeholders are working simultaneously.

O nce you're ready to make your move , Microsoft has two upgrade paths that can help with your migration:

1. Microsoft Teams Upgrade Basic (Cutover)

2. Microsoft teams Upgrade Pro (Co-Existence)

1. Upgrade Basic  (Cutover)

The U pgrade Basic mode  is designed for smaller organizations or those  people  that are using  SFB as their primary chat tool  and meetings only. It's a quick action plan for implementing your Skype for Business upgrade to Teams that includes recommended activities, and relevant resources. The Skype for Business Upgrade to Teams upgrade is designed to keep in mind that you'll be shifting your entire organization to  the new service at once.  The Skype for Business Upgrade to Teams process typically takes around 30 to 45 days.

The following ten steps furnish everything you need for a successful Skype for Business Upgrade to Teams. They're designed to be completed in the estimated 30 to 45 days but can be adjusted based on your organization's upgrade schedule.

• Notify your key stakeholders
• Prepare your organizatio n for the move
• Know your Skype for Business users
• Notify your users about the upgrade
• Activate the user upgrade notification
• Give your users a reminder of the shift
• Upgrade all users to Teams
• Monitor Teams usage against your baseline
• Measure user satisfaction
• Maximize your ROI with Teams

You can learn in detail about all these steps in this  article by Microsoft  After your users are upgrade d to Teams Only mode):

• Their  SFB client will be disabled, and all chat and calls go to Teams. This will not uninstall the client on their desktops.
• Any  SFB meetings that were scheduled before the upgrade will work as designed, but all the new meetings will be scheduled in Teams. The Skype for Business plugin will no longer be available in Outlook.
• If a user tries to sign in to Skype for Business, they will get a notification from their client that they've been upgraded to Teams.
• Users would need to manually uninstall Skype for Business client on their devices.

2.  Upgrade Pro  (Co-Existence)

The Up grade Pro (coexistence mode for journey to Teams)  is designed for organizations larger in size, or those that acquire a more complex deployment of  SFB and not only use this tool for some features . It is comparatively a more prolonged upgraded lifecycle that would be completed in phases and offers extensive guidance and planning resources. This phased approach typically takes around 120 to 150 days. You can learn more about this  mode  in an incredibly detailed article to  Upgrade from Skype for Business to Microsoft Teams  After your users are upgraded to  Teams Only mode:

• Their  SFB  client will be disabled, and all chat  communications   and phone call experience go to Teams. This will not uninstall the client on their desktops.
• Any Skype for Business meetings that were scheduled before the upgrade will work as designed, but all the new meetings will be scheduled in Teams. The Skype for Business plugin will no longer be available in Outlook.

How to choose Your Skype for Business upgrade to Teams Strategy

There is a question to answer that which Skype for Business upgrade to Teams path would be good for you. To have an answer to this question please have a look at the below comparison of both approaches which would help you decide in the end which option to go with.

Microsoft offers several options for running Skype for Business Online and Teams together which is also known as Teams Skype for Business Interoperability. These coexistence modules allow users to familiarize themselves with Teams while helping accelerate your upgrade to Teams ONLY. Here’s how you can use Teams and Skype together in the meanwhile.

Microsoft Teams Licensing

To begin discussing this portion, we need to understand the current standings of Skype for Business Online Plans that how Skype for Business Online retire announcement has affected them and what are the aftereffects.

Skype for Business Online Plan 1 retired

Skype for Business Online Plan 1 has retired. However, if you have a current subscription to Skype for Business Online Plan 1, this change won’t affect you right away. As a global Office 365 admin, you’ll receive email updates and see posts in the message center (part of the Microsoft 365 admin center) with information on when you need to act. In the meantime, you can continue to use your existing Skype for Business Online Plan 1 licenses.

When you are ready to move to a new plan — either now or during renewal — you’ll have the option to switch to another Office 365 plan of your choosing.

You can maintain the same functionality you had with Skype for Business Online Plan 1 while taking advantage of new features and functionality from Office 365. Many plan options available include all the features that came with Skype for Business Online Plan 1, as well as IM and presence, peer-to-peer audio and video over IP, and the ability to join meetings as an authenticated user.

S kype for Business Online Plan 2 retired from sale

Skype for Business Online Plan 2 retired from sale on July 1, 2019. This means that you will no longer be able to acquire Skype for Business Online Plan 2 for instant messaging, presence, meetings, and peer-to-peer voice and video. These features will continue to be supported in all plans that include Teams, including Office 365 suites.

When your plan expires at the end of your current term, to have continued access to these features, you'll have to switch to a different plan. We recommend that you evaluate the Microsoft 365 Business Basic, Business Premium, or any other Office suites for users that currently have Skype for Business Online Plan 2 assigned.

How to purchase Microsoft Teams License?

Microsoft Teams may be used without cost but with extremely limited functionality. The free version of it comes with certain limitations of meeting time span, small cloud storage etc.

Apart from  the Free version ,  it comes along with any of the Office 365 or Microsoft 365 Plans and is not available as a standalone license option.

To acquire Teams Licenses, you’d primarily have two options to go with. Microsoft 365 Business Plans or Microsoft 365/Office 365 Enterprise Plans . We do get both the Licenses i.e., Skype for Business Online Plan 2 and Microsoft Teams License within each package as shown in screenshot below for Office 365 E3.

Last Updated 2 months ago

About the Author

Ateeb is a Microsoft Certified Solutions Associate. He aids clients in deployment, and management of Microsoft technologies - for both, on-premises and on the cloud environment. With significant experience in deploying stand-alone and enterprise solutions, Ateeb enjoys helping organizations with their digital transformation journey.

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Want to start using teams as a phone system.

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• [1] Once your paid subscription begins, cancellation policies vary based on your status as a new customer and your product and domain selections on Microsoft.  Learn more . Cancel your Microsoft 365 subscription any time by going to the Microsoft 365 admin center. When a subscription is canceled, all associated data will be deleted.  Learn more about data retention, deletion, and destruction in Microsoft 365 .​ Storage allocations in Education tenants may be limited. Please see  Office 365 Education service description  for details.
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Microsoft 365 Business Standard

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• Applies to: Skype for Business

Skype for Business Online operated by 21Vianet in China will be retired on October 1, 2023. If you haven't upgraded your Skype for Business Online users yet, they will be automatically scheduled for an assisted upgrade . If you want to upgrade your organization to Teams yourself, we strongly recommend that you begin planning your upgrade path today. Remember that a successful upgrade aligns technical and user readiness, so be sure to leverage our upgrade guidance as you navigate your journey to Teams.

Skype for Business Online, excluding the service operated by 21Vianet in China, was retired on July 31, 2021.

If you have Microsoft 365 Business Standard , you can use Skype for Business to make calls to other people in your business who are on your subscription. For example, if your business has 10 people, you can call and IM each other using Skype for Business.

To make and receive calls from people external to your business, you have two options :

Option 1. Use the free Skype app . If you have a very small business (for example, 1-2 people), using the Skype app is the better way to go. It's less expensive to use for domestic and international calls. You can still hold conference calls, make video calls, and share your desktop for presentations. Check out the rates and payment options .

Note that the Skype app isn't part of the Office 365 suite, so it won't be integrated with Outlook 2016 the way Skype for Business is. This means your contacts in Outlook 2016 won't show up in Skype; you'll need to add your contacts to Skype.

We recommend starting with the Skype app to see if it meets your needs. If it doesn't, then consider the next option, to upgrade your plan.

You have to set a toggle to allow your employees to use Skype for Business to search for Skype users. See Let Skype for Business users add Skype contacts .

Option 2. Upgrade your plan, and buy a Phone System and a Domestic or Domestic and International Calling Plan .

Although Skype for Business Online Plan 2 is included with the Office Business Premium subscription, you can’t add cloud voice calling features . So, we recommend that you evaluate an Enterprise E5 (or Enterprise E3) plan to see if it is more cost effective.

Switch to a different Office 365 for business plan . We recommend that you evaluate an Enterprise E5 plan to see if it is more cost effective.

Buy the Phone System add-on.

Buy a Calling Plan for Office 365 : you can only buy this after you buy the Phone System add-on.

This second option is ideal for businesses with several people who make and receive external phone calls.

How to see prices and buy

To get Audio Conferencing and Communication Credits:

Sign in to the admin center.

Go to Billing > Subscriptions > Add-ons > Buy add-ons .

You'll now see the prices and option to buy Audio Conferencing, and setup Communications Credits.

To get Phone System and a Calling Plan:

Switch to the E1 or E3 plan.

Go to the admin center > Billing > Subscriptions .

Choose Add-ons . You'll now see the prices for Phone System, and the option to buy it.

After you buy a Phone System license, you'll see the price and option to buy a Calling Plan.

Additional resources

What is the latest version of Skype on each platform?

Make Skype-to-Skype calls, instant message your friends and family for free, or call mobiles and landlines at great Skype rates anytime you want, from your computer, mobile, or gaming device. Learn more about the system requirements for Skype .

You can use Skype on the following platforms:

If your platform isn't listed, it may no longer be supported. Check here .

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