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.
Both work. Both are significantly better than ISDN. But they suit different businesses, and the cost difference is meaningful.
What Is MS Teams Direct Routing?
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.
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.
Direct Comparison
| Feature | Teams Direct Routing | Hosted 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 |
Who Should Choose Teams Direct Routing?
Teams Direct Routing is the better choice if:
- Your team already lives in Teams for chat and video — they'll adopt phone calls in Teams naturally
- You want to reduce the number of separate apps and logins
- Your telephony requirements are relatively standard (inbound/outbound calls, voicemail, basic routing)
- You want the lowest per-user cost and already pay for Microsoft 365
Who Should Choose Traditional Hosted VoIP?
Hosted VoIP is the better choice if:
- You have a receptionist or call centre function requiring advanced queue management
- Staff prefer physical desk phones on their desks
- You need detailed call reporting and wallboard displays
- You have a mix of Microsoft 365 and non-Microsoft users
- You want one provider responsible for both your broadband and phone system
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 seamlessly.
Not Sure Which Is Right for You?
Our team will assess your current setup and recommend the right solution. No obligation, no sales pressure.
Explore MS Teams Routing →Telexico Communications
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 →