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MS Teams Phone System vs Traditional VoIP — Which Is Right for You?

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If your business uses Microsoft 365 — and most West Midlands businesses do — you have a genuine choice when replacing your phone system: Microsoft Teams Direct Routing, or a traditional hosted VoIP system with a separate platform.

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Both work. Both are significantly better than ISDN. But they suit different businesses, and the cost difference is meaningful.

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Microsoft Teams has a phone app built in — but by default it only calls other Teams users. Direct Routing connects Teams to the public phone network, so you can make and receive calls to any phone number in the world, directly from the Teams app you're already using.

What Is MS Teams Direct Routing?

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Microsoft Teams has a phone app built in — but by default it only calls other Teams users. Direct Routing connects Teams to the public phone network, so you can make and receive calls to any phone number in the world, directly from the Teams app you're already using.

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Your staff use Teams as their phone system — calls, voicemail, call history — all inside the same app they use for chat, video calls and file sharing. No separate phone app. No second screen. No additional login.

What Is Traditional Hosted VoIP?

A hosted VoIP system — like Telexico's Cloud X — is a dedicated cloud phone system. You access it via a desktop app, mobile app or a physical desk phone. It has more telephony-specific features than Teams, but is a separate platform to your Microsoft 365 applications.

Can You Have Both?

Yes — Telexico can deploy hybrid configurations where Teams users in some departments use Direct Routing, while call centre or reception staff use the full Cloud X VoIP platform. Both connect to the same phone numbers, and calls route between them without a hitch.

Not Sure Which Is Right for You?

Our team will assess your current setup and recommend the right solution. No obligation, no sales pressure.

Based in Wolverhampton, Telexico provides VoIP, broadband, CCTV, AI services and cyber security to businesses across Birmingham, the West Midlands and the UK. Learn more →

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Talk to our West Midlands team about any of the services mentioned in this article.

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The complete picture

FeatureTeams Direct RoutingHosted VoIP
Uses existing Teams app✅ Yes❌ Separate app
Physical desk phones⚠️ Limited models✅ Full range
Advanced call routing / IVR✅ Good✅ Excellent
Call recording✅ Yes✅ Yes
Call centre / queue management⚠️ Basic✅ Advanced
Cost per user (calling plan only)£3.99 + line£9.99–£19.99
Requires M365 subscription✅ Yes❌ No
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Sarah M.
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"Switched our entire office phone system and broadband. The team handled everything, zero downtime. Saving over £200 a month compared to our old BT contract."

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"Had failover installed after losing internet for a whole day. Assure X kicks in within seconds. Our team didn't even notice when the main line dropped last week."

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"Our dental practice needed reliable phones and fast broadband. Telexico sorted everything in one visit. The AI receptionist handles after-hours calls brilliantly."

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