Microsoft Teams review (2026): features, pros and cons, and what to check before you buy
Microsoft's chat, meetings and calling app, sold standalone as Teams Essentials or bundled in Microsoft 365 plans.
Our take for buyers
Microsoft Teams is the chat, meetings and calling app for organizations on Microsoft 365 and Entra ID. Reviewers like how easy it is to use, its file sharing and its tight fit with Microsoft 365. G2 shows 4.4 from more than 19,000 reviews. Note that Teams live events retired on June 30, 2026 in favor of Teams events, covering town halls and webinars.
Complaints focus on performance: slow loading, heavy resource use and a complicated interface. Buyers wanting a lightweight tool should test that on real hardware. Shortlist Teams if you already live in Microsoft 365, and pay close attention to compliance search, guest access and licence add-ons, which are where surprises hide.
Pros
- Easy to use, strong file sharing and communication features.
- Tight fit with Microsoft 365.
Cons
- Performance issues and heavy resource use.
- Complicated interface, slow loading.
- Best for
- Organizations already on Microsoft 365 and Entra ID.
- Starting price
- $4.00/user/month paid yearly (Teams Essentials)
- G2 rating
- 4.4 (19,192 reviews)
What is Microsoft Teams?
Microsoft's chat, meetings and calling app, sold standalone as Teams Essentials or bundled in Microsoft 365 plans. IT admins in Microsoft 365 shops get Entra ID sign-in and Exchange-based chat storage without a separate vendor review. Small firms can buy Teams Essentials at $4.00 per user monthly, billed yearly. Run a pilot on typical laptops, as reviewers report slow, heavy clients. Microsoft Teams is based in Redmond, US.
Category: Team Chat and Messaging Software, Video Conferencing Software
Microsoft Teams key features
| Criterion | What we found |
|---|---|
| Channels and threading | Standard, private and shared channels; up to 1,000 channels per team; teams up to 25,000 members. |
| Built-in video and huddles | Calls from chat up to 20 people; meetings up to 300 people on Essentials and Business plans, up to 1,000 on enterprise plans. |
| Search and message history limits | Chat stored in Exchange Online mailboxes; admin search and hold needs Exchange Online mailbox. |
| App integrations and bots | Teams apps available on Business and Enterprise plans; Loop integrations. |
| Guest and external access | Shared channels support external participants with Entra work or school accounts only. |
| Security and admin controls | Built on Entra ID and Microsoft 365 compliance; certification list not confirmed by the vendor. |
| Pricing model and transparency | Per user, bundled with Microsoft 365 or standalone Essentials. |
| Target company size | Small businesses (Essentials, Business) to enterprises (E3/E5) |
| Participant and meeting length limits | 300 on Essentials and Business plans; 1,000 on F1/F3/E3/E5 and similar; breakout rooms only up to 1,000 attendees; meetings and events capped at 30 hours. |
| Recording and AI transcription | Recording max 4 hours or 1.5 GB, then restarts; recordings not uploaded stay downloadable 20 days. |
| Calendar and chat integrations | Tight Outlook and SharePoint integration; files stored in SharePoint (up to 250 GB per file) |
| Webinars and large events | Webinars and town halls (Teams events) available on Business plans; webinars/events on Business Standard and Premium per footnote. |
| Meeting room and hardware support | Teams Rooms licensed separately. |
Microsoft Teams plans and pricing
| Plan | Price | Unit | Notes |
|---|---|---|---|
| Teams Essentials | $4.00 | per user/month, paid yearly | Standalone; meetings up to 300 people |
| Microsoft 365 Business Basic | $7.00 paid yearly; $8.40 monthly billing | per user/month | Includes Teams; $5.40/user/mo paid yearly variant without Teams |
USD figures are from Microsoft US pages (teams pricing page and Business Basic page). One Malaysia-locale page showed $2.00 for Essentials, which is a regional price. Business Standard and Premium prices are not included here.
Who should shortlist Microsoft Teams
A strong fit for
- Organizations already on Microsoft 365 and Entra ID.
- Small businesses wanting meetings for up to 300 people at about $4/user/month.
A weak fit for
- Teams wanting a lightweight tool; reviewers report slow, resource-heavy clients.
- Buyers needing group video calls beyond 20 people from a chat.
Microsoft Teams alternatives
SlackTeams wanting channel-based chat with a large app ecosystem.
Zoom WorkplaceTeams whose main need is reliable video meetings with chat attached.
Google MeetTeams already on Google Workspace that want meetings tied to Calendar and Gmail.
Cisco WebexEnterprises that want meetings plus calling and room hardware from one vendor.
Google ChatTeams already on Google Workspace that want chat without a second license.
ChantySmall teams wanting cheap per-user chat with tasks.
Security, admin and compliance
SSO comes through Microsoft Entra ID with the Microsoft 365 tenant, though plan-level detail is not published in a form we could cite. SCIM, audit logs, data residency and a DPA are not stated in the material we found. Admin chat search and legal hold need users to have Exchange Online mailboxes, which affects compliance planning. Annual subscriptions auto-renew. Ask for a certification list in writing, since it is not confirmed here.
- SAML SSO
- Via Microsoft Entra ID, included with the Microsoft 365 tenant (plan-level detail not confirmed by the vendor)
Contract and buying terms
- Contract
- Annual subscription; monthly billing option on Business Basic at higher price.
- Starting price
- $4.00/user/month paid yearly (Teams Essentials)
- Pricing model
- Per user, bundled in Microsoft 365 or standalone.
- Free plan or trial
- Free plan.
What to test in a Microsoft Teams demo or trial
Run Teams on your oldest laptops, since reviewers report slow, resource-heavy clients. Test a 300-person meeting limit against your largest event, and remember group calls from chat stop at 20 people. Try shared channels with outside partners, which support external participants with Entra work or school accounts only. Check recording behavior: recordings max out at 4 hours or 1.5 GB, then restart. Confirm whether you need Teams events, which replaced live events.
Questions to ask Microsoft Teams before you sign
These are the points Microsoft Teams's public pages leave open. Get the answers in writing before procurement signs off.
- Is SCIM provisioning included, or a paid add-on?
- Which plan includes audit logs, and how long are they kept?
- Where is our data stored, and can we choose the region?
- Can we sign your standard DPA without changes?
- What will the price be at renewal, and is the increase capped?
Things to know before a demo
- Teams Essentials ($4/user/month) is cheaper than Business Basic ($7) but does not include the rest of Microsoft 365 apps.
- Meeting cap is 300 people on Essentials and Business plans, 1,000 on enterprise plans.
- Teams live events retired June 30, 2026; events scheduled earlier run until Feb 28, 2027.
- Admin chat search and legal hold need users to have Exchange Online mailboxes.
- Audio conferencing, Teams Phone and Premium are separate licenses.
Head-to-head comparisons
Microsoft Teams FAQ
What is Microsoft Teams used for?
IT admins in Microsoft 365 shops get Entra ID sign-in and Exchange-based chat storage without a separate vendor review. Small firms can buy Teams Essentials at $4.00 per user monthly, billed yearly. Run a pilot on typical laptops, as reviewers report slow, heavy clients. It suits organizations already on Microsoft 365 and Entra ID.
Does Teams support SSO?
Yes, through Microsoft Entra ID as part of the Microsoft 365 tenant. Microsoft's pages do not give plan-level detail, so confirm what your plan includes.
Can external guests join Teams channels?
Shared channels support external participants who have Entra work or school accounts only. Personal accounts are not covered.
What do admins need for chat search and legal hold?
Chat is stored in Exchange Online mailboxes, so admin search and hold require users to have an Exchange Online mailbox.
Vendor profile
- Headquarters
- Redmond, US.
- Funding or owner
- Part of Microsoft.
Sources
Every fact on this page comes from Microsoft Teams's own pricing, product or documentation pages, G2 and company records, checked on October 24, 2026. Unknown values are left out instead of estimated.