Microsoft Teams Phone System is Replacing Landlines

Traditional landline phone systems are becoming obsolete, and for good reason. Businesses that still rely on outdated PBX or analog systems face rising costs, limited scalability, and operational inefficiencies.

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Jason Meilleur

Published: February 20, 2025 |

Traditional landlines are expensive, outdated, and inefficient—and businesses are making the switch to Microsoft Teams Phone System to cut costs, streamline communication, and future-proof operations. By eliminating on-premise hardware, reducing call expenses, and lowering IT maintenance costs, businesses can save up to 50% on phone system expenses.

Beyond savings, Microsoft Teams Phone unifies calling, video, and messaging into a single platform, simplifying management, enhancing scalability, and supporting hybrid work. Real-world case studies show businesses recouping their investment within a year while improving productivity and collaboration.

Ready to modernize your phone system and reduce costs? Keep reading to see how Microsoft Teams Phone System can transform your business.

Why Are Businesses Moving Away from Landlines?

Traditional landline phone systems are becoming obsolete, and for good reason. Businesses that still rely on outdated PBX or analog systems face rising costs, limited scalability, and operational inefficiencies. These systems require extensive maintenance, lack modern integrations, and often result in excessive expenditures on international and long-distance calls.

According to Jason Meilleur, Cloud Solutions Director at 360 Visibility, “Legacy phone systems are holding businesses back. They’re costly to maintain, difficult to scale, and lack the flexibility that modern organizations demand. A shift to Microsoft Teams Phone System allows businesses to consolidate communication into a single, cost-effective platform while enhancing collaboration across teams.”

How Much Can You Save by Switching to Microsoft Teams Phone System?

Microsoft Teams Phone

One of the biggest drivers for adopting Microsoft Teams Phone System is cost savings. On average, businesses can save 30–50% on their phone system expenses by moving from legacy landlines to a cloud-based solution. Here’s why:

  • Eliminate On-Premise Hardware Costs – Traditional PBX systems require expensive maintenance, upgrades, and space for physical servers. Cloud-based systems remove these costs.
  • Reduce Call Costs – With Microsoft Teams Phone, domestic and international calling plans are more affordable than traditional carriers.
  • Lower IT Support Costs – Managing a cloud-based phone system reduces the burden on IT teams compared to maintaining legacy PBX systems.
  • No More Costly Upgrades – Microsoft continuously updates and enhances Teams, ensuring your system remains secure and up to date without expensive overhauls.

“By transitioning to Microsoft Teams Phone, businesses eliminate the hidden costs of outdated hardware and maintenance while benefiting from predictable, subscription-based pricing,” explains Jason Meilleur.

What Operational Efficiencies Come with Microsoft Teams Phone System?

Beyond cost savings, Microsoft Teams Phone System offers significant efficiency improvements:

  • Unified Communication Platform – Integrate calling, video conferencing, messaging, and file sharing in a single application, reducing the need for multiple software subscriptions.
  • Scalability Without Complexity – Easily add new users, locations, or features without purchasing new hardware or infrastructure.
  • Simplified Administration – Centralized management through Microsoft 365’s Admin Center reduces complexity and IT overhead.
  • Better Support for Hybrid & Remote Work – Employees can make and receive business calls from anywhere using their Teams app on desktop, mobile, or certified desk phones.

According to Jason Meilleur, “The ability to unify all communication and collaboration tools into one platform creates an immediate operational advantage. IT teams no longer need to juggle multiple vendors and support contracts, making administration more streamlined and efficient.”

Real-World ROI: A Cost-Benefit Analysis

Aggregate telecom expenses for Florida Crystals dropped by 78% after the company consolidated the PBX exposure, eliminated leased lines, and deployed the Teams Phone–based solution. The Direct routing option provided PSTN connectivity that reached all the geographies where customers needed coverage, and reduced the company’s telecom budget. The company now counts 2,322 phone users on Operator Connect. All on-premises PBX lines have been decommissioned and transitioned to Teams, and the company has 400 devices with Teams Phone, in addition to SIP common-area phones. Florida Crystals has experienced vast improvements in collaboration and communication efforts across globally distributed departments. Read the story on Microsoft.

“We’ve seen companies recover their investment in Microsoft Teams Phone within the first year through cost reductions and productivity gains alone,” notes Meilleur.

What Are IT Decision-Makers Saying?

Teams Phone revolutionized the way we communicate. Prior to COVID-19, we had 2,000 desk phones. We’ve replaced them with 400 phones and headsets.” – Dan Hall, Global IT Collaboration Solution Owner, Florida Crystals Corporation

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How to Successfully Transition to Microsoft Teams Phone System

Migrating from landlines to Microsoft Teams Phone System is easier than you think, but it requires a strategic approach.

  1. Assess Your Current System – Identify pain points, cost inefficiencies, and integration requirements.
  2. Choose the Right Microsoft Calling Plan – Evaluate domestic vs. international call needs and licensing options.
  3. Plan for Deployment – Work with a certified Microsoft Cloud Partner to ensure a seamless transition and avoid disruption.
  4. Train Employees for Adoption – Provide guidance and training to maximize the effectiveness of Teams for calls, meetings, and collaboration.
  5. Monitor & Optimize – Continuously track adoption, usage trends, and refine settings to enhance efficiency.

Get Started with Microsoft Teams Phone System Implementation

Switching to Microsoft Teams Phone System delivers significant cost savings, operational improvements, and future-proof communication for your business.

As a Microsoft Cloud Partner, we specialize in seamless implementation, ensuring you maximize ROI from your transition.

Contact us today to explore how Microsoft Teams Phone System can transform your business communications.

teams phone system implementation

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