Office 365 Add-on Licensing Options

Office 365 Add-on Licensing Options

Microsoft provides several options enabling customers to easily add Skype for Business enterprise communications capabilities to Office 365 and Teams, which are highlighted below:

The Phone System license provides fully integrated PBX and Unified Communications capabilities using the Skype for Business Online client in Office 365.  This provides a far better experience for Office 365 users compared to other hosted PBX systems on the market, which require companies to essentially “turn off” the Skype for Business Online client in favor of their own UC client.

The Audio Conferencing license provides the ability to set up dial in phone numbers, enabling participants to join an audio conference via the telephone in addition to the standard capability of joining directly with a computer.  Users scheduling Audio Conference calls must also have a Phone System license.

Microsoft also offers Domestic and International Calling Plans for Phone System and Teams.  In addition, Microsoft now supports Direct Routing for Teams, which enables organization to use Altigen’s cost effective SIP trunk service.  Please click on the following link for information regarding Altigen’s Direct Routing solution for Teams.


Organizations with Office 365 ProPlus, Business Essentials, Business or Business Premium plans must first upgrade to an Enterprise plan (E1, E3 or E5) in order to purchase Phone System and Audio Conference licenses. Customers with E1 and E3 plans simply need to purchase the number of add-on licenses for Phone System, Audio Conferencing and Calling Plans required.  E5 plans already include the Phone System license, leaving customers with the option to purchase Audio Conferencing licenses for designated users.  All plans require a Microsoft Calling Plan, Cloud Connector, Direct Routing in order to place and receive external calls.

Sound complicated?  Don’t worry we fully understand all of the capabilities, prerequisites and licensing requirements to add full communications capabilities to any Office 365 plan.  We can assess your company’s communications requirements, evaluate your current Office 365 plans and recommend the best and most cost effective solution for your company.  We can also plan for and manage the entire migration process and provide ongoing support.