In an era increasingly defined by video conferences at work or remotely, cloud communication tools (formerly known as group chat tools) have become indispensable, especially with platforms like Microsoft Teams rising to meet this demand. This article was prompted by my Teams Essentials invoice today and led me to review it and the related Microsoft M365 plans, focusing on features, pricing, and ideal user scenarios. Whether you are a small business exploring options or a large organisation needing advanced collaboration features, this piece aims to address your questions regarding which platform might better suit your operational needs. For more insights into Microsoft Teams, visit the official Microsoft Teams page.
TL:DR – This comparison reveals that Teams Essentials is a more feature-rich option targeted at small businesses wishing to use Microsoft’s collaboration tools without subscribing to the full Microsoft 365 package, unlike the free version of Teams which is limited in both features and capabilities. You might find Teams Essentials or a Microsoft 365 subscription compelling enough to justify the difference but it is hard to argue with a price point of free.
Understanding Microsoft Teams: The growth narrative
Since its inception, Microsoft Teams has undergone significant evolution to meet user demands for effective communication in both small and large settings. Initially launched in 2017, Teams found its footing as a comprehensive communication platform, integrating features like video conferencing, chat, file sharing, and project collaboration. This transition was further fuelled by the global shift towards remote work catalysed by the COVID-19 pandemic, where user numbers surged from 75 million to over 145 million daily active users within a year. Such overwhelming growth underscores the need for adaptable and versatile team communication tools in the modern workplace.
Free Teams
Realising there was an increasing market of small businesses seeking effective yet cost-friendly collaboration tools, Microsoft launched the free version of Teams in 2018. This version came tantalisingly close to fulfilling users’ communication needs but fell short due to limitations in functionalities. In response to this gap, Microsoft later introduced Teams Essentials, specifically tailored for small businesses desiring more without committing to a complete Microsoft 365 suite. Thus, it is pertinent to explore how these two offerings vary in capabilities, considering both past growth and future potential.
Exploring Teams Essentials and its features
Launched in December 2021, Teams Essentials has positioned itself as a valuable asset for small businesses requiring an all-in-one collaboration platform. Priced at an attractive £4/user/month, it addresses the shortfalls of the Free version by offering unlimited group meeting time, which is essential for continuous workflows and sustained collaboration over lengthy discussions. Such flexibility can significantly enhance productivity by circumventing the disruptive nature of having fixed time limitations prevalent in free offerings.
In comparison to its counterpart, Teams Essentials provides an improved user experience with a 10GB cloud storage space per user, doubling that of the free version’s limit. Moreover, this increase accommodates the need for extensive file sharing and archiving, which is particularly crucial for small businesses that rely heavily on documentation and collaborative projects. Additionally, users are provided access to phone and web support, a feature lacking in the Free Teams version, further facilitating a seamless working experience.
Understanding Free Microsoft Teams: A closer look
The Free version of Microsoft Teams is designed with basic functionalities suited for individual users or small teams looking for a rudimentary collaboration tool. While it remains a robust option, it comes with notable limitations that can hinder its applicability in professional environments. Group video calls are capped at 60 minutes, an inadequate allowance for many business discussions. Additionally, the plan only permits up to 5GB of cloud storage, which may quickly become an obstacle for teams dealing with significant amounts of data.
Moreover, the support system included with the Free version is limited, which might prove frustrating for users who encounter hurdles during usage. If organisations wish for more than just essential capabilities, this version can become a bottleneck. It is therefore necessary to evaluate whether the Free version can suffice given a business's operational needs, especially for enterprises positioned towards growth.
Pricing structure: A decisive factor
When considering collaboration tools, the pricing structure invariably influences decision-making processes. Teams Essentials presents a clear value proposition at £4/user/month. In contrast, the Free version is, as advertised, without cost; however, the question becomes whether its limitations make it a feasible choice in the long run. Quite evidently, if expanded functionality is essential for effective workflows, Teams Essentials stands out as a financially reasonable investment. With the potential return in productivity and efficiency from unencumbered meeting hours and increased support, small businesses may find this plan compensates significantly for the upfront cost.
In examining the options, it should be acknowledged that Teams Essentials ultimately serves as an excellent bridge. Whether companies are expanding or simply require greater collaboration tools, the pricing creates a scalable solution that fosters growth while still maintaining cost-effectiveness. This strategic positioning could well play a critical role in an organisation’s success in navigating an increasingly digital workspace.
Comparison of features between Teams Essentials and Free version
A straightforward feature comparison between Teams Essentials and Free version elucidates the significant advantages of services tailored to business needs. Teams Essentials includes unlimited group meeting time, a necessity in today’s business environment where collaborative discussions frequently extend beyond predefined time restraints. Furthermore, where the Free version halters at merely 5GB of cloud storage, Essentials bolsters itself with 10GB, proving more than twice as generous. This makes the Essentials plan ideal for environments in which extensive documentation and resource sharing are part of daily operations.
Additionally, Teams Essentials supports new features that have emerged since its rollout. With access to app integrations, advanced meeting capabilities, and a more comprehensive interface, organizations embracing Teams Essentials can stay ahead of the curve compared to users reliant on the Free version. The feature distinctions speak volumes to the practical enhancements that are requisitely available for any business intent on thriving in a collaborative marketplace.
Identifying the right choice for your business
Ultimately, the decision between Teams Essentials and the Free version should be driven by individual business needs. For freelancers or casual users, the Free version might suffice, particularly for those focusing on limited scope collaboration. However, the moment teams grow or work towards more ambitious projects, the limitations of the Free version may quickly overshadow its initial appeal.
On the other hand, Teams Essentials provides the enhanced capabilities small businesses crave. The usage of extensive cloud storage, comprehensive support, and unlimited meeting lengths positions it as a compelling choice. As companies evaluate their operational strategies in a technologically driven world, opting for a service that aligns with their ambitions becomes indispensable. Every growing business ought to consider the long-term implications of the chosen platform, as it ultimately impacts not just costs, but workflow efficiency and employee satisfaction.
Feature comparison between Free Teams and Teams Essentials
| Feature | Teams Free | Teams Essentials |
|---|---|---|
| Meeting Duration | Up to 60 minutes | Up to 30 hours |
| Meeting Participants | Up to 100 | Up to 300 |
| Cloud Storage | 5 GB per user | 10 GB per user |
| Support | None | Phone and web support |
| Price | Free | $4 per user/month |
In short, Teams Essentials offers longer meetings, supports more participants, provides additional storage, and includes support services, all for a monthly fee.
Looking at the Microsoft 365 options
To add another layer to this comparative analysis, it is necessary to consider the bundled offerings provided with Microsoft 365 subscriptions. While this package includes downloadable Office applications, it carries a higher price point starting from £6/user/month for the Basic plan to £12.50/user/month for the M365 Business Standard. It is essential to gauge whether these additional features are indispensable for business operations before enticingly opting for the full suite.
For teams that already possess the offline version of Office or do not employ Office apps excessively, choosing Teams Essentials may render significant savings without forgoing vital functionalities. Conversely, organisations that are heavily reliant on Office applications would benefit from investing in a M365 plan, as it systematically integrates Teams and the comprehensive suite required for thriving in a digital workspace.
| Feature | Teams Free | Teams Essentials | Microsoft 365 Business Standard |
|---|---|---|---|
| Meeting Duration | Up to 60 minutes | Up to 30 hours | Up to 30 hours |
| Meeting Participants | Up to 100 | Up to 300 | Up to 300 |
| Cloud Storage | 5 GB per user | 10 GB per user | 1 TB per user |
| Support | None | Phone and web support | Phone and web support |
| Office Applications | Web versions only | Web versions only | Desktop and web versions |
| Email Hosting | Not included | Not included | Included with custom domain |
| Price | Free | £3.10 per user/month | £9.40 per user/month |
In summary, Microsoft 365 Business Standard offers the most comprehensive package, including full desktop versions of Office applications, 1 TB of cloud storage per user, and email hosting with a custom domain. However, it comes at a higher price point compared to Teams Essentials and the free version.
Being a guest in other organisations teams
Other organisations might invite you to be a guest in their Teams to provide you with access to documents, channels, chats and other applications. You don't need a Teams account to be a guest in another organisations Teams. Just an email address. The advantage for the other organisation is that they control your access and their policies apply to your Teams account so its not quite the case that you can just do as you please, you might be subject to logging, audit, or other compliance policies. There are other limitations too so do check the Guest experience in Teams article at Micsofots support as they might be too limited for you.
Conclusion: Making an informed decision
In conclusion, both Microsoft Teams Essentials and the Free M365 version offer distinct paths for teams aiming to bolster collaboration. For small businesses seeking an unlimited and feature-rich collaboration tool without committing to an entire Microsoft 365 suite, Teams Essentials is an indisputable option. Meanwhile, the Free version may still serve adequately for limited needs but will request users to face considerable limitations that could stifle growth in an increasing digital landscape.
Ultimately, as businesses navigate their ways through digital solutions, they should clearly define their essential needs and long-term plans. Teams Essentials is a good choice, offering value at a modest price point—especially when substantial and unfettered collaboration is a priority, Free Teams is an excellent price point, and Microsoft 365, well all it really adds is desktop versions of the Office suite of apps and some device flexibility comparet to a perpetual licence. I'm a stick in the mud and prefer perpetual licences to subscriptions so I have been using Teams Essentials, but you know I might just move from Teams Essentials to Free Teams so I have paused my recurring billing so that it expires rather than continuing to bill my credit card. I'll think about what to do after that happens.
Email Screenshot: Your Microsoft Teams Essentials subscription no longer has recurring billing
Note: The email says "Because recurring billing was turned off for Microsoft Teams Essentials, your subscription and any associated add-on services will expire on 21 June 2025. To avoid service interruptions, turn on recurring billing for your subscription in Microsoft 365 admin centre. When recurring billing is turned on, you’ll be billed for your subscription on your renewal date. To change your billing frequency to monthly or yearly for your Microsoft Teams Essentials subscription, visit the subscription page in Microsoft 365 admin centre."
