Microsoft Teams has emerged as the centerpiece of modern workplace collaboration, with over 320 million monthly active users as of 2024. As companies increasingly rely on Teams not just for messaging and meetings but also for telephony, the way you connect external calls to your Teams environment becomes a critical decision. Among the available options are Microsoft Calling Plans, Operator Connect, and Direct Routing. Direct Routing offers the most flexibility and control, especially for enterprises with complex voice requirements.
In this blog, we’ll help you determine whether Microsoft Teams Direct Routing is the right fit for your organization. We’ll break down its capabilities, benefits, and how it compares to other options like Operator Connect. If you’re exploring enterprise voice options for Teams, this guide will help you evaluate the right solution for your needs.
What Is Microsoft Teams Direct Routing?
Direct Routing is a Microsoft-certified method for connecting Teams to the Public Switched Telephone Network (PSTN) using a third-party provider via a Session Border Controller (SBC). This approach allows businesses to use virtually any telecom provider to make and receive calls through Teams, bypassing Microsoft’s built-in Calling Plans.
Unlike Microsoft Calling Plans, which are bundled, fixed-price services managed entirely within Microsoft 365, Direct Routing offers granular control over voice traffic, routing, pricing models, and integrations.
When Direct Routing Makes Sense
Direct Routing may not be necessary for every business. But if your organization has any of the following needs, it’s likely the best option.
Global Reach
Direct Routing lets you work with carriers that offer PSTN services in more countries than Microsoft supports directly. This is crucial for multinationals or companies with regional offices outside Microsoft’s service footprint.
Integration with Existing Infrastructure
If you operate legacy PBX systems, analog devices, or third-party contact center platforms, Direct Routing allows these systems to work in harmony with Teams—an option not possible with Calling Plans and limited with Operator Connect.
Advanced Call Routing and Control
With full control over the SBC, IT teams can define complex call flows, prioritize traffic, and meet specific business or compliance requirements. This flexibility is ideal for industries with high regulatory or security needs.
Cost Efficiency at Scale
Many third-party carriers offer transparent, usage-based pricing models, potentially reducing costs by up to 60% compared to Microsoft Calling Plans. For large organizations or those with seasonal variability in call volume, this can yield significant savings.
How Direct Routing Compares to Other Teams Voice Options
Direct Routing sits on one end of the spectrum of Teams voice connectivity options. Let’s explore how it stacks up next to Microsoft Calling Plans and Operator Connect.
Direct Routing vs Microsoft Calling Plans
Calling Plans are ideal for simplicity. You pay a flat monthly fee per user, and everything is managed through the 365 Admin Center. But this comes with trade-offs:
- Limited geographic coverage
- No support for legacy systems
- Fixed pricing, which may be costly at scale
In contrast, Direct Routing offers customizable configurations, broader global reach, and pricing flexibility—but requires more setup and IT involvement.
Direct Routing vs Operator Connect
Operator Connect bridges the gap between Calling Plans and Direct Routing. It allows you to choose a third-party carrier directly from within the Teams Admin Center. This simplifies provisioning and enables better call quality through trusted cross-connects. However, Operator Connect:
- Is still constrained to pre-approved carriers
- May not offer the same granular routing and integration options as Direct Routing
- Can be less flexible for hybrid and legacy environments
Benefits of Microsoft Teams Direct Routing
Direct Routing is often chosen not just for its flexibility but for the holistic business value it delivers.
Complete Customization
Because SBCs can be managed in-house or via a provider, you can tailor your environment to meet specific operational, regulatory, or security needs. This includes configuring failovers, custom IVRs, or detailed reporting.
Broad Integration Capabilities
Direct Routing enables Teams to integrate with existing enterprise-grade systems. For instance, contact centers, paging systems, and compliance tools like call recording or analytics platforms can all be seamlessly connected.
Global Carrier Options
You are not limited to Microsoft’s service areas. Choose carriers that offer better pricing, local presence, or coverage in countries Microsoft doesn’t serve—ideal for multinationals and distributed workforces.
Higher Availability and Redundancy
You can deploy geo-redundant SBCs and work with providers offering managed services for even greater resiliency. This is particularly important in regulated industries or for businesses that rely heavily on real-time communications.
Common Scenarios Where Direct Routing Excels
Here are a few use cases where Direct Routing has proven essential.
- Highly Regulated Industries:
Financial institutions and healthcare organizations often require specific call routing, compliance recording, and data residency rules. Direct Routing enables these configurations with complete traffic control. - Distributed Enterprises:
Companies with offices in multiple countries can use Direct Routing to consolidate voice into a single network, ensuring feature parity across regions. - Legacy Hardware Dependency:
Businesses with analog devices or proprietary hardware (e.g., elevator phones, overhead paging) can continue using them alongside Teams through Direct Routing. - Hybrid Cloud and On-Prem Environments:
If you’re not ready to go all-in on cloud telephony, Direct Routing supports hybrid setups, letting you gradually migrate users without disrupting operations.
Pros and Cons of Microsoft Teams Direct Routing
To help you decide if Microsoft Teams Direct Routing is for you, here’s a balanced look at Direct Routing’s strengths and trade-offs.
Pros:
- Maximum flexibility in voice routing and integrations
- Supports hybrid and legacy systems
- Global coverage through carrier of your choice
- Potential cost savings through pay-as-you-go models
- Carrier independence for more pricing and support options
Cons:
- Requires more technical resources for setup and management
- Longer provisioning timelines than turnkey solutions
- More complex than Microsoft Calling Plans or Operator Connect
Even with the added complexity, many organizations find that the long-term control and savings outweigh the upfront setup investment.
How to Get Started with Direct Routing
Microsoft doesn’t directly help with setting up Direct Routing for Microsoft Teams. They partner with approved managed service providers who will manage your Microsoft licensing, all of the necessary technology and connections, and any integrations with other business apps that you want to connect. They will also port existing numbers or set up new numbers if needed.
Most experts recommend this route rather than trying to do it yourself. Even if you have an IT staff, it is unlikely they have the telecom and Microsoft expertise or bandwidth to manage the transition efficiently. A qualified managed service provider will help you migrate users slowly or all at once with minimal downtime or disruption to operations.
When they’re finished, you’ll have a unified communications platform that provides a consistent user experience across voice, video, data, and mobile applications. No matter where you and your employees work each day, they can easily and quickly connect without ever thinking or worrying about reliability or quality issues.
What Features Will a Unified Communications Platform Have?
Depending on how you set up Direct Routing for Microsoft Teams, you will be able to leverage all of the features of both Microsoft Teams and your phone system – all from a single platform. Some of the voice-enabled Teams features are:
- Contact Center
- Collaboration Management
- Instant Messaging/Chat
- Advanced Call Routing and Queuing
- Intercom/Paging
- Telephony Extensions
- Mobility
- Full Microsoft 365 Compatibility and Access
- Online Meetings for up to 10,000 People
- Voicemail
- Document Sharing
All of these features are easily accessible from any connected device, support any way your workforce wants to work. Direct Routing for Microsoft Teams gives you this flexibility as you build a more scalable, streamlined network.
Is Direct Routing Right for You?
Microsoft Teams Direct Routing isn’t for everyone, but if your business requires advanced configurations, multi-region support, or full ownership of your communications stack, it’s likely the best solution. It offers unmatched control, potential cost savings, and long-term scalability, especially for larger or more complex environments.
If you’re exploring Direct Routing or looking to optimize your Teams voice setup, consider working with a provider that offers managed SBC services, global reach, and integration support.
Ready to streamline and scale your Microsoft Teams telephony? Talk to an expert at Pure IP to learn how Direct Routing can be configured and managed for your unique needs.
