Phone System

Replace your traditional phone system by adding a set of calling features delivered with a Phone System in Office 365. Make and receive business calls in the office, at home, or on the road, using your phone, PC, or mobile device.

Phone System is available as a part of the Office 365 Enterprise E5 subscription.

We are bringing Skype for Business Online capabilities into Microsoft Teams.

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Works seamlessly with Office 365

Operate your business phone system in the cloud and eliminate the need for traditional PBX hardware and the associated maintenance costs. And because Phone System is built in Office 365, your system is always up to date with state-of-the art features.

Works for all your conversations

Easily transition from your old system Office 365 with business telephone features. Answer, transfer, hold, and resume calls with just a touch. And instantly transform basic calls into productive, collaborative sessions with text, video, and desktop sharing.

Scales globally

Connect your phone system to the Microsoft worldwide network—and get the power of the Microsoft cloud wherever your business goes. You can even use your own operator connectivity to call landlines and mobile phones using simple on-premises software.

Phone System includes:


Call answer / initiate (by name or number)

Answer inbound calls with just a touch. Easily place outbound calls by dialing the full phone number, or just click a contact’s name.

Call hold / retrieve

Have multiple calls occurring at the same time. Just answer the next inbound call or place an outbound call, and your current call goes on hold automatically.

Call history

Keep track of all your conversations in one place—from IMs and phone calls to impromptu and scheduled meetings. It’s all recorded in your call history and stored in Exchange.

Call delegation and call on-behalf

Make or answer calls on behalf of a manager you support. Notifications make it clear to all participants when calls are answered or made for someone else.

Call transfer (blind, consult, and mobile)

Easily transfer calls from your PC to your IP phone, mobile device, or tablet—and every combination in between.


Need to speak to someone when they’re not available? You can easily tag people and get notified when their presence changes and they’re ready to take phone calls.

Caller ID

Calls from inside your company display a detailed caller ID that pulls information from your corporate directory—so you see a picture and job title instead of just a phone number.

Call waiting

When a call comes in while you’re in a call or meeting, you get a quiet notification in addition to a regular notification, so you can accept the call or route it to voicemail.

Call forwarding and simultaneous ring

Never miss a call with call forwarding and simultaneous ringing. Set up forwarding rules so your calls can go with you anywhere. Even forward calls to colleagues or to voicemail.

Clients for PC, Mac, and mobile devices

Experience robust calling features on the devices you’re already using—from tablets and mobile phones to PCs and desktop IP phones.

Device switching

Need to move a call from a headset to speakerphone quickly? You can easily play your call or meeting on another device with just a couple of clicks.

Distinctive ringing

Play different ringtones for the different types of calls you get every day, so you quickly know who is calling you.

Do-not-disturb routing and call blocking

Working on something urgent? Control your inbound communications with presence. Easily block all incoming communication except from those you specifically indicate.

Enterprise calendar call routing

Use your Exchange calendar business hours to enable or disable call forwarding and simultaneous ringing in Skype for Business—so you keep control of your calls and your time.

Integrated dial-pad

Make outbound calls quickly by dial by name or by number anywhere in the search bar and in the dial-pad.

Music on hold

Music plays when you place a call on hold, so your callers will know you’re still there and the call hasn’t accidentally dropped.

Qualified IP desk phones

Choose from a variety of compatible desk phones. Get great audio quality and ease of use in addition to robust calling features.

Skype and federated calling

Search for anyone in the Skype directory. Then connect, communicate, and collaborate with everyone—consumers, businesses, and friends and family—all without sacrificing security.

Team calling

Cover calls with your team easily without any extra work from IT. With team calling, your calls are sent to your team either immediately or after a set time period.

Video call monitor

Multi-task during meetings without missing what’s happening. See the speaker’s name and video stream in a small floating window, so you’re always ready to respond to any questions.

Voice mail

Get all your voice mail deposited in your Exchange mailbox and made available through Skype for Business on your PC, mobile device, and IP phone.


Pricing for Phone System

If you have Office 365 Enterprise E5, Phone System is included.
Learn more about Enterprise E5features and pricing information

If you have Office 365 Enterprise E1 or E3, Phone System is available for an {CloudPBXO365E3|price}/month add-on fee.
Learn more about Enterprise E1features and pricing information
Learn more about Enterprise E3features and pricing information

Price does not include VAT.


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Phone System enables you to make, receive, and transfer calls to and from phones, mobile phones, tablets, and PCs, from nearly anywhere that has Internet access. With Phone System, you don't need a separate infrastructure to manage because users get all the calling features they need, and IT administrators can use the Office 365 administrator portal to manage users’ communications.

For more information, see Here’s what you get with Phone System.

With Phone System, you can connect your existing phone service provider with Office 365 allowing calls coming through your existing on-premises infrastructure to connect with Phone System. If you already have Skype for Business Server deployed on-premises, you can use that software to connect between Office 365 and your existing PSTN circuits. New customers can deploy the Cloud Connector Edition of Skype for Business Server, which provides a more streamlined deployment approach using pre-packaged Virtual Machines to connect to your PBX, SBC, or Gateway.

While Phone System provides the call control capabilities for end users and the administrative features for IT, it connects to the PSTN through either a calling plan add-on or to your existing PSTN circuits using Cloud Connector Edition.