A purpose-built, AI-native phone system against adding calling to Microsoft Teams. The right answer depends on how central Microsoft 365 already is to your business.
Teams Phone is the obvious pick if your company already lives in Microsoft 365 and just needs to add calling. Dialpad is the better standalone phone system, with native AI, a purpose-built calling experience, and far simpler licensing.
Published list prices. Teams Phone licensing is layered, so the real cost depends on calling plans and bundles. Negotiated rates through us run 30%+ below list where applicable.
| Tier | Dialpad | Microsoft Teams Phone |
|---|---|---|
| Entry | $15/user/mo (Standard) | $8/user/mo (Teams Phone license) |
| To make PSTN calls | Included | + Calling Plan ~$15/user/mo or Operator Connect |
| Bundled option | $25/user/mo (Pro) | Microsoft 365 E5 (~$57/user/mo, phone included) |
| AI features | Included at every tier | Copilot, separate license |
Teams Phone looks cheap at $8, but that license is only the phone system. You still need a calling plan, Operator Connect, or direct routing to actually make calls, which usually brings the real cost in line with or above Dialpad.
| Area | Dialpad | Microsoft Teams Phone |
|---|---|---|
| AI features | Native: transcription, summaries, coaching | Copilot, separate license |
| Calling experience | Purpose-built softphone | Inside the Teams app |
| Setup and licensing | Simple, one vendor | Layered: licenses plus calling plan or routing |
| Microsoft 365 fit | Integrates with Teams and 365 | Native, same login |
| Contact center | Ai Contact Center built in | Needs third-party or add-ons |
| Business SMS | Included | Limited, add-on |
| Desk phones | Supported | Certified devices |
| Reliability | Voice-focused SLA | Microsoft global backbone |
| Admin | Single, simple portal | Teams Admin plus Azure |
Teams Phone wins on convenience for Microsoft shops. It loses on calling depth, SMS, and contact center. Dialpad wins on the actual telephony experience and AI, but it sits next to Teams rather than inside it. If Microsoft 365 is your center of gravity, Teams Phone is hard to beat on price. If calling quality and AI are the point, Dialpad is the better tool.
You want a purpose-built, AI-first phone system with simple licensing and SMS included.
Your company already runs on Microsoft 365 and wants calling inside Teams.
Still not sure? Tell us about your setup, we'll tell you which one (or a third option you haven't considered) actually fits.
Get a personalized recommendationWe'll quote both Dialpad and Microsoft Teams Phone (plus any other relevant options) at wholesale rates and tell you which fits your team's actual setup.