Cloud phone comparison · Updated September 2026

Microsoft Teams Phone vs Dialpad: Which Fits Your Business in 2026?

Teams Phone makes calling part of Microsoft Teams; Dialpad Connect combines business calling and messaging with AI conversation tools. A sales manager may value fast transcripts and post-call notes, while IT may prefer a phone system inside its existing Microsoft 365 environment.

Both can be considered without abandoning Teams. Dialpad also describes ways to bring its calls into Teams; that is a separate buying path to check before choosing a license.

Compare features ↓Explore Dialpad →
Our editorial take

Test your busiest caller's day

Choose Teams Phone if people live in Teams and administrators want phone policy and carrier options managed around Microsoft.

Shortlist Dialpad Connect if phone conversations, messaging and useful AI recaps are central to the workflow.

If your sales team needs live coaching or more advanced contact-center functions, price Dialpad Sell or Support explicitly; do not assume Connect includes them.

Direct answer

What Is the Main Difference?

Microsoft Teams Phone provides a cloud PBX inside Teams and requires an appropriate PSTN arrangement for external calls. Dialpad Connect is a dedicated phone and messaging platform with built-in AI-oriented call workflows. Dialpad also offers Teams integration, so the interface choice and the underlying calling service should be priced separately.

Provider overview

Teams Phone and Dialpad at a Glance

Microsoft Teams Phone

Best for: teams that already rely on Microsoft 365 and want their calling inside Teams.

Watch: Microsoft phone licensing and external calling connectivity can require distinct purchases.

G2 logo4.4/5 · G2Microsoft Teams overall, not a Teams Phone-specific rating; checked September 2026.
Explore Teams Phone →

Dialpad Connect

Best for: phone-heavy teams that want calling, messaging, transcription and recaps in a dedicated communications platform.

Watch: advanced coaching and contact-center tools belong to different Dialpad products or tiers.

G2 logo4.4/5 · G2Dialpad Connect listing; checked September 2026. Scores can change.
Explore Dialpad →

These scores cover different G2 listings and are not a controlled call-quality comparison. Microsoft's score is for the broader Teams product.

Side-by-side

Feature Comparison for Buyers

Swipe the table sideways to see both products →

Buying questionTeams PhoneDialpad Connect
Daily workspacePhone within Teams and Microsoft 365 collaboration.Phone and messaging in Dialpad; a Teams integration is offered separately.
External callingEligible phone license plus Microsoft or carrier PSTN connection.Check selected plan's included calling area, number availability and international rates.
AI call notesMicrosoft transcription and related capabilities vary by license, application, settings and region; verify phone-call use specifically.Dialpad promotes live transcription and AI recaps; confirm access, retention and plan details.
Sales coachingEvaluate separately licensed Microsoft or partner solutions for your exact need.Dialpad Sell supplies specialized sales workflows; do not confuse it with Connect.
RoutingAuto attendants and queues, subject to configuration and entitlement.Departments, routing and available analytics vary by plan; test the actual queue.
IntegrationsMicrosoft 365 and approved operator ecosystem.Microsoft 365 and third-party apps; verify the particular CRM connector and plan.
Best testBuild a Teams queue and cost out the whole carrier path.Review a consented real call's transcript, recap and CRM handoff.
Detailed feature breakdown

Call Quality, Scale, Integrations and Administration

Call quality

Neither provider guarantees better audio at every site. Compare the same headset, network and PSTN destination; note packet loss, one-way audio and mobile transitions.

Routing and queues

Test business-hours menus, overflow, supervisor visibility, transfers and voicemail. Ask who can edit a queue after hours and which tier enables the reports you need.

Scalability

Add a sample user, number and office location in each admin console. Check country coverage, permissions and support responsibilities as the organization grows.

CRM integration

Have a representative log a real sample call to your CRM. Confirm whether call activity, transcript, summary or recording links sync on the quoted plan.

Mobile workflows

Try calling and messaging from desktop and mobile. Check business caller ID, SMS rules, device compatibility and continuity when a user changes networks.

Reporting and privacy

Compare manager dashboards and who can see recordings or AI recaps. Confirm local consent rules, retention controls and role permissions with your organization.

Call quality checklist: Review latency and jitter and common VoIP problems before your trial.
The important AI distinction

Dialpad Connect AI vs Sales and Support AI

Dialpad markets Connect with call transcription and AI notes. Its Teams integration overview also describes live transcripts, recaps and separate configurations. But Dialpad Sell and Dialpad Support add more specialized sales coaching and contact-center functions. The safe buying question is not simply “Does Dialpad have AI?” It is “Does the exact plan give our users the notes, permissions, integrations and coaching we need?”

Recorded with consent
↓
Check transcript
Review recap and action items
↓
Correct mistakes
Share to CRM
↓
Confirm access rules

Hands-on test: Make five permitted sales calls that include names, product terms and noisy audio. Score transcript accuracy, summary usefulness, follow-up ownership, CRM handoff and retrieval time. AI-generated notes need human review.

Can Dialpad work in Teams?

Yes. Dialpad advertises an embedded app in the Teams sidebar and a Microsoft Direct Routing configuration using the Teams dialer. These represent different technical and commercial setups. Request a diagram showing who owns the number, calling service, Dialpad license and Teams Phone eligibility in the option you are buying.

True cost

Pricing: Compare Equivalent Calling and AI Workflows

Microsoft's US page lists Teams Phone Standard at $10/user/month paid yearly; public telephone service and qualifying Teams licensing must also be accounted for. Its US Phone with Calling Plan listing is $17/user/month paid yearly, subject to eligibility. Dialpad advertises Connect Standard starting at $15/user/month on annual billing; verify live checkout terms, country, calling allowances and whether your needed AI or CRM features require Pro, Sell or Support.

Microsoft · US example
$10 /user/month, paid yearly

Teams Phone Standard is a phone-system license; add an eligible Teams subscription and PSTN route as applicable. Check regional Calling Plan availability.

Check Microsoft pricing →
Dialpad Connect · advertised starting price
$15 /user/month, annual billing

Verify country, included minutes, phone numbers, messaging, AI notes, storage, recording, integrations and any upgrade to Sell or Support.

Explore Dialpad plans →

Put These Items on Your Quote

Same roles · same country · same contract period

Swipe sideways to compare costs →

Cost itemTeams PhoneDialpad
LicensesTeams or Microsoft 365 entitlement, Phone license and any AI or reporting tools.Connect seats and any Pro, Sell, Support or Teams integration needs.
Calls and numbersCalling Plan or external carrier, numbers, usage and international rates.Included calling, numbers, usage, SMS and international rates.
WorkflowQueue configuration, recording, transcriptions, devices and support.Recording, AI recap access, CRM integration, analytics and support.
Commercial termsSetup, porting, taxes, renewal and cancellation.Setup, porting, taxes, renewal and cancellation.

US advertised examples checked September 2026. Check the current provider quote before publishing fixed local prices.

Advantages and limits

Pros and Cons

Microsoft Teams Phone

Pros

  • Calling in the familiar Teams environment.
  • Multiple eligible PSTN connection methods.
  • Existing Microsoft administration can support rollout.

Cons

  • Licensing and carrier layers can complicate cost.
  • Post-call sales AI must be checked in the precise license stack.
  • Carrier and Microsoft support ownership may be split.

Dialpad Connect

Pros

  • Dedicated phone and messaging workflow with AI-oriented notes.
  • Option to integrate Dialpad calling with Teams.
  • Mobile and desktop experience built around conversations.

Cons

  • Advanced Sell and Support features need separate evaluation.
  • Exact AI and CRM capabilities can depend on plan and region.
  • Buying alongside Microsoft 365 can add overlapping subscriptions.
Documented examples

What Real Business Deployments Suggest

Teams Phone: ScottMadden

Microsoft's ScottMadden customer account describes moving calling into the Microsoft environment and creating familiar guides for staff. The lesson is to treat training and migration as part of the phone project. It is a vendor-published account.

Dialpad: Sunstate Equipment

Dialpad's Sunstate Equipment story describes replacing an aging phone system and using Connect alongside Sell and Support. Dialpad reports reduced time spent on calls and improved efficiency; those results involve multiple Dialpad products, so do not attribute them to Connect alone.

Independent perspective: G2 reviews can surface recurring user experiences with transcripts and administration. Their scores reflect different review populations, while a five-call pilot can tell you whether the notes actually help your sales team.

Expert buying guide

How to Run a Useful Two-Week Pilot

Map the roles

Separate reception, sales, managers and occasional callers. List current numbers, countries, queues, compliance and CRM requirements.

Test real tasks

Run approved calls and rate audio, transfers, transcript errors, summaries, permissions, mobile handoff and queue reporting.

Compare complete quotes

Ask for equivalent plans, AI functions and contract periods. Confirm number porting and ownership before moving the main line.

See our VoIP setup requirements guide for the office network and equipment checklist.

FAQs

Microsoft Teams Phone vs Dialpad: Common Questions

Does Microsoft Teams Phone include public phone calls?

Teams-to-Teams calling is distinct from calling external phone numbers. External calling requires a suitable Teams Phone entitlement and an eligible PSTN route, such as a Microsoft Calling Plan, Operator Connect or Direct Routing.

Does Dialpad Connect include AI call transcripts?

Dialpad promotes AI transcription and recaps with Connect, but the exact availability, retention, recording controls and plan or country restrictions should be confirmed in your quote and trial.

Is Dialpad Sell the same as Dialpad Connect?

No. Dialpad Sell is a sales product with additional coaching and sales workflows. Do not assume every Sell feature is included in a Connect seat.

Can Dialpad be used inside Microsoft Teams?

Yes. Dialpad describes an embedded Teams app and a separate Microsoft Direct Routing option. Ask which setup and licenses are included in the proposed quote.

Which is less expensive?

There is no universal winner. Compare Teams licensing and PSTN costs with Dialpad Connect seats, numbers, international usage, integrations and any added sales or support products over the same term.

Can both services support call queues and auto attendants?

Both offer business routing features, but queue depth, supervisor tools, recording, analytics and agent licensing vary. Test the exact call flow in the proposed configuration.

What should sales teams test first?

Run a consented sample call and examine transcription accuracy, recap usefulness, access permissions, CRM synchronization and how a manager corrects errors.

Can I port existing phone numbers?

Porting depends on country and number type. Obtain a written eligibility check and migration schedule before cancelling existing service.

Final Verdict

Choose Teams Phone when your organization is centered on Microsoft 365 and your administrators can manage the chosen phone and PSTN setup. Shortlist Dialpad when call notes, transcripts and phone-first workflows are valuable to frontline teams. Get a separate Dialpad Sell or Support quote if coaching or contact-center features are essential. If staff must stay in Teams, pilot Dialpad's exact Teams integration before deciding.

Explore Teams Phone →Explore Dialpad →

Affiliate disclosure: VoIPCalling.com may earn a commission through our Dialpad referral link. Microsoft is linked directly. This does not change your price.

Sources and review method

Checked September 2026 against Microsoft Teams Phone pricing and features, Microsoft's licensing guidance, Dialpad's plan comparison, Dialpad Connect overview, Teams integration documentation and the linked customer accounts. Ratings were checked against G2 listings; G2 is identified in the rating badge without a link. This is a researched buying guide, not an independent audio benchmark. Product rights and prices can vary by geography and contract.

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