When it comes to selecting the right communication tool for your business, Microsoft Teams and Skype are two prominent options that frequently come up. Both platforms, developed by Microsoft, are widely used in business settings, but they differ in terms of features, functionality, and costs. If you’re unsure about which is the best fit for your organisation, this detailed comparison of Microsoft Teams vs Skype will help you make an informed decision.
Overview of Microsoft Teams vs Skype
Before diving into a direct comparison, it’s important to understand the core offerings of each platform:
Microsoft Teams is a collaboration platform that integrates a wide range of services including chat, video conferencing, file sharing, and integration with Office 365 applications. It’s designed to streamline teamwork and is particularly well-suited for businesses that need a centralised platform for communication, project management, and collaboration.
Skype is primarily a communication tool, focusing on video calls, voice calls, and instant messaging. Skype for Business, which was targeted at professional users, is being phased out in favour of Microsoft Teams, although the consumer version of Skype still remains available.
| Category | Microsoft Teams | Skype |
|---|---|---|
| Best suited for | Medium to large businesses, collaborative teams | Small businesses, freelancers, personal use |
| Main purpose | Collaboration and communication platform | Voice and video calls, instant messaging |
| Group call size | Up to 1,000 participants (20,000 view-only webinars) | Up to 100 participants |
| Chat functionality | Persistent chat, threaded conversations, channels | Basic instant messaging |
| Video conferencing | HD video, screen sharing, meeting recording, customisable backgrounds | HD video, screen sharing, call recording |
| Voice calls | Internal calls, VoIP, PSTN (with add-on), call queues, call recording | VoIP, call recording, international calling options |
| File sharing | 2 GB personal storage, 10 GB shared storage (free), integrated with OneDrive and SharePoint | File sharing with limited storage (free version) |
| Collaboration tools | Full integration with Office 365 (Word, Excel, PowerPoint, etc.), co-authoring, task management | None – limited to basic file sharing |
| Third-party app integration | Extensive integration with business apps (Salesforce, Trello, etc.) | Limited integration with a few apps like Outlook |
| Security and compliance | Enterprise-grade security (encryption, MFA), GDPR compliance, audit logs, eDiscovery | Standard encryption, lacks enterprise-grade security and compliance features |
| Mobile app | Full-featured mobile app for Android and iOS | Mobile app with fewer features than the desktop version |
| Customisation | Highly customisable with tabs, bots, and pinned apps | Limited customisation |
| Ease of use | Complex but powerful, with a learning curve | Simple and intuitive for beginners |
| International calling | Available through paid add-ons with Teams Phone system | Available through Skype Credits and subscriptions |
| Storage | 2 GB personal and 10 GB shared storage (free plan), more with paid plans | Basic storage, limited to personal file transfers |
| Free plan | Yes – includes unlimited chat, group meetings, and file sharing | Yes – includes calls, chat, and file sharing |
| Paid plans | Microsoft 365 subscription required (starting at £4.50 per user/month) | Pay-as-you-go for international calls, subscription for Skype Number |
| Integration with Office 365 | Full integration (Word, Excel, PowerPoint, SharePoint, OneDrive) | Limited to basic integration with Outlook |
| Pricing | Free version available, paid plans start from £4.50 per user/month for Microsoft 365 | Free, with optional paid features for international calling |
| Support for PSTN calling | Yes, with Teams Phone System add-on | No |
| Target audience | Large organisations, remote teams, project-based teams | Small businesses, freelancers, individuals |
Feature comparison – Microsoft Teams vs Skype
1. Communication tools
- Microsoft Teams: Offers a robust suite of communication tools. Businesses can take advantage of instant messaging, voice calls, video calls, and group video meetings that can accommodate up to 1,000 participants (increasing to 20,000 for view-only webinars). The platform also integrates fully with Outlook, making it easy to schedule meetings, while also supporting persistent chat threads and file sharing.
- Skype: Focuses on voice and video calls, with the ability to host group calls for up to 100 participants. Skype includes chat functionality, but it lacks the depth and variety of collaborative features that Teams offers. Skype is generally better suited for quick, one-off calls and personal communication, whereas Teams is more structured for ongoing business collaboration.
2. Collaboration and productivity
- Microsoft Teams: Beyond communication, Teams excels in collaboration. It integrates with the full Office 365 suite (Excel, Word, PowerPoint, etc.), allowing users to co-author documents in real-time and share files seamlessly within chats or channels. Teams also offers integrations with third-party applications like Trello, Salesforce, and other business tools, which make it ideal for project management and ongoing workflows.
- Skype: While Skype does allow basic file sharing, it doesn’t provide any project management tools or integration with productivity applications. It is limited in terms of collaboration features and lacks the advanced team-centric capabilities of Microsoft Teams.
3. User interface and experience
- Microsoft Teams: The interface of Teams is designed for complex, multi-functional use. It can take some time for users to become familiar with the wide array of features and options available. However, once mastered, it becomes an all-in-one hub for communication and collaboration. Teams is highly customisable with tabs, bots, and applications that can be pinned to different channels.
- Skype: Skype’s interface is much simpler. It’s easy to use, even for beginners, with a straightforward chat and call layout. However, this simplicity means that it doesn’t offer much flexibility or customisation compared to Microsoft Teams.
4. Security and compliance
- Microsoft Teams: As part of the Microsoft 365 ecosystem, Teams benefits from enterprise-grade security and compliance standards, including data encryption in transit and at rest, multi-factor authentication (MFA), and compliance with GDPR. It also offers audit logs and eDiscovery features that make it a solid choice for businesses in regulated industries.
- Skype: Skype also provides encrypted communication, but it doesn’t have the same level of security and compliance features as Teams. Skype is generally more appropriate for less regulated environments where security is important but not mission-critical.
5. Integration with other tools
- Microsoft Teams: Teams offers deep integration not only with Microsoft 365 but also with a range of third-party apps. These integrations allow businesses to automate workflows, manage projects, and collaborate on documents without needing to switch between platforms. This creates a more seamless experience for businesses using multiple tools.
- Skype: Skype’s integration capabilities are far more limited. While it can connect to certain apps like Outlook, it lacks the expansive integrations that Teams offers, making it less versatile for businesses that rely on multiple tools for their daily operations.
6. Mobile capabilities
- Microsoft Teams: Teams has a mobile app for both Android and iOS, offering nearly all the features available on the desktop version, including chat, video calls, file sharing, and access to shared files.
- Skype: Skype also offers mobile apps, but with fewer features compared to Teams. While you can make video and voice calls, the collaboration capabilities are limited.
Cost comparison – Microsoft Teams vs Skype
1. Microsoft Teams
- Free plan: Microsoft Teams offers a free version, which includes unlimited chat, built-in online meetings, audio and video calling for groups of up to 100 people, and 2 GB of personal file storage plus 10 GB of shared team storage.
- Paid plans: The premium version of Teams is included with Microsoft 365 subscriptions, which start at £4.50 per user per month (Microsoft 365 Business Basic) and go up to £16.60 per user per month (Microsoft 365 Business Premium). These plans include additional features such as advanced security, more storage, and integration with the full Microsoft 365 suite, including Outlook, SharePoint, and OneDrive.
2. Skype
- Free plan: The free version of Skype allows users to make voice and video calls, send instant messages, and share files. However, it lacks advanced collaboration tools and has limitations in group call size compared to Teams.
- Paid plans: Skype’s paid plans primarily apply to international calling rather than collaboration features. Businesses can purchase Skype credits to make international calls at reduced rates, or subscribe to a Skype Number for a local phone number that can be used for inbound calls. Pricing for these services varies based on the country and the plan chosen, with Skype credits starting from £2.00.
Pros and cons summary
| Criteria | Microsoft Teams | Skype |
|---|---|---|
| Best suited for | Medium to large businesses, collaborative teams | Small businesses, freelancers, personal use |
| Features | Comprehensive collaboration tools, project management, integration with Office 365 | Basic communication tools (calls, chat, file sharing) |
| Security | Enterprise-grade security and compliance | Standard encryption, limited compliance |
| Costs | Free version, paid plans start at £4.50 per user | Free version, pay-as-you-go international calls |
| Ease of use | More complex, but highly customisable | Simple and intuitive, but limited flexibility |
| Video conferencing | Up to 1,000 participants (20,000 view-only) | Up to 100 participants |
| Integration capabilities | Extensive integrations with Microsoft 365 and third-party apps | Limited integration options |
Final thoughts – Which should you choose?
If your business prioritises collaboration and needs an all-in-one tool that integrates with productivity applications like Office 365, Microsoft Teams is the clear choice. Its robust features, scalability, and enterprise-level security make it ideal for larger organisations or those needing a centralised platform for teamwork and communication.
However, if you’re a small business or freelancer looking for a simple and affordable way to make voice and video calls without needing extensive collaboration tools, Skype remains a solid option. Its ease of use and low-cost international calling features may be more than enough for basic business communication.
Ultimately, the decision comes down to the size and needs of your business. For collaboration-focused environments, Teams is a powerful tool, while Skype offers simplicity for businesses with more modest requirements.
FAQ
Microsoft Teams is a collaboration platform with integrated communication tools, while Skype is primarily a communication tool for voice and video calls. Teams supports extensive integrations with productivity apps, whereas Skype is more focused on direct communication, with fewer collaborative features.
Microsoft Teams offers more advanced video conferencing features, supporting up to 1,000 participants (20,000 in webinars) with meeting recording and customisable backgrounds. Skype supports group calls for up to 100 participants, making it suitable for smaller-scale meetings but with fewer advanced options.
Yes, Microsoft Teams provides enterprise-grade security, including encryption, multi-factor authentication (MFA), and compliance with GDPR. Skype offers standard encryption but lacks the advanced security and compliance features that are built into Microsoft Teams, making Teams the better choice for highly regulated industries.
Microsoft Teams has superior file sharing capabilities, integrating with OneDrive and SharePoint for seamless collaboration, and offering up to 10 GB of shared storage in its free version. Skype allows basic file sharing but lacks the extensive storage and collaboration tools that Teams provides.
Microsoft Teams supports meetings with up to 1,000 active participants, and 20,000 view-only webinar attendees, making it more suitable for large-scale events. Skype supports group calls of up to 100 participants, which is more appropriate for smaller business meetings or personal use.
Microsoft Teams integrates fully with the Microsoft 365 suite, allowing users to collaborate on documents in real-time through Word, Excel, and PowerPoint. Skype offers only basic integration with Outlook, making Teams a better choice for businesses relying heavily on Microsoft 365 tools.
Skype is generally easier for beginners, with a straightforward and simple interface designed for quick communication. Microsoft Teams, on the other hand, has a steeper learning curve due to its comprehensive feature set but offers more advanced functionality once users are familiar with it.
Skype is free for basic use, with optional pay-as-you-go services for international calls. Microsoft Teams also has a free version, but the full range of features is available through Microsoft 365 subscriptions, starting at £4.50 per user/month, making Skype potentially cheaper for basic communication needs.
Microsoft Teams offers extensive third-party app integrations, supporting tools like Trello, Salesforce, and project management software. Skype has very limited third-party integration, making Teams the better option for businesses that rely on multiple software platforms for their day-to-day operations.
Microsoft Teams is better suited for remote work due to its collaboration tools, project management features, and integration with Office 365. Skype is ideal for quick, ad-hoc communication, but lacks the team-oriented and productivity-focused capabilities that make Teams more effective for distributed workforces.