Everything You Need to Know About Skype for Business Costs in 2025

If you’re looking for Skype for Business pricing in 2025, here’s the short answer: It’s no longer available. Microsoft officially retired Skype for Business in 2021, transitioning users to Microsoft Teams as its replacement.
But what does that mean for businesses that relied on Skype for Business? More importantly, what are the costs of replacing it today?
While Microsoft Teams has taken over as the default option, businesses looking for a cost-effective, flexible alternative to Skype for Business have other choices.
In this article, you’ll learn about modern VoIP and cloud-based communication systems with transparent pricing, advanced features, and seamless integrations—without locking you into the Microsoft ecosystem.
Let’s dive in.
Key Takeaways
- Skype for Business No Longer Exists: It was officially retired in 2021 and replaced by Microsoft Teams, now the primary communication tool for businesses using Microsoft 365.
- Microsoft 365 Pricing Has Evolved: Depending on the features your business needs, Microsoft Teams could be a strong option. However, some companies may find that the added costs and licensing structures make alternative solutions more cost-effective.
- There Are Flexible Alternatives Available: Businesses looking for a VoIP or cloud-based calling solution outside the Microsoft ecosystem have several options. This includes CloudTalk, which offers scalable pricing, specialized features, and seamless integrations.
Looking for a Skype for Business Alternative with the Best Value?
Skype for Business Pricing—What It Used to Cost
Searching for Skype for Business pricing in 2025? We’ve got news. Skype for Business and its costs have headed to Florida for retirement and to improve its golf game.
That’s right! Microsoft officially retired Skype for Business in 2021. But don’t worry—we’ve got the details on what Skype for Business used to cost and what your best alternatives are in 2025.
Before its discontinuation, Skype for Business had structured pricing plans that helped businesses manage communication. However, with the shift to Microsoft Teams, pricing increased, leaving many businesses looking for alternatives.
Skype for Business Pricing Breakdown (Before Retirement)
Plan
Price (Before Retirement)
Features Included
Best For
Skype for Business Free
$0
Basic chat & video for small teams
Small businesses or startups testing communication tools
Skype for Business Online Plan 1
$2 per user/month
Instant messaging, video calls, limited meetings
Small businesses needing internal collaboration tools
Skype for Business Online Plan 2
$5.50 per user/month
Large-scale video meetings, advanced collaboration
Mid-sized businesses with remote teams or frequent online meetings
Skype for Business Server
Varies (custom licensing)
On-premise solution for enterprises
Large corporations needing advanced security & full control
CloudTalk vs. Skype for Business: A Comprehensive Comparison
See how CloudTalk pricing and features compare to Skype for Business costs and features in the table below:
Feature
CloudTalk
Skype for Business
Value for Money
Offers transparent pricing with feature-rich plans starting at 25/user/month. No hidden fees or licensing requirements.
Had affordable plans, but additional costs for advanced features and international calls.
Call Quality & Reliability
High-definition voice quality with advanced call routing and failover protection.
Users reported inconsistent call quality, especially with large meetings.
Ease of Use
Intuitive interface designed for fast onboarding and seamless user experience.
Traditional interface; required IT support for setup and maintenance
Integration Capabilities
Seamlessly integrates with 35+ tools including CRMs like Salesforce and HubSpot.
Integrated primarily within the Microsoft ecosystem; limited compatibility with non-Microsoft tools.
Scalability
Built for businesses of all sizes, from startups to enterprises, with flexible pricing.
Supported up to 250 participants per meeting; required additional infrastructure for larger deployments.
Need to Keep Your Existing Skype Number?
CloudTalk’s Key Advantages Over Skype for Business
- Intelligent Call Routing & Automated Workflows: Route calls to the right agent based on skills, location, past interactions, or business hours. Reduce wait times, improve resolution speed, and ensure your customers never reach the wrong department again.
- Global Business Presence with Local Numbers: Secure local and toll-free numbers in 160+ countries, giving your business an international presence without the high costs of maintaining physical offices abroad.
- Real-Time Analytics & Call Monitoring: Track agent performance, call durations, and customer trends with live dashboards and customizable reports. Identify inefficiencies and optimize team performance instantly.
- Seamless CRM & Business Tool Integrations: Connect CloudTalk effortlessly with Salesforce, HubSpot, Zendesk, and of course Microsoft Teams, making CloudTalk your one-stop solution for everything.
If you are looking for a robust outbound call system, as well as all the key sales metrics that accompany it, then look no further. I found Cloudtalk to be incredibly robust, intuitive and reliable. A must have for any sales leader who is serious about making inroads to potential prospects via a soft phone. Especially if they operate on a global scale.
Greg Brown, VP Sales Europe at Valutico
Need an Easy Transition from Skype for Business. See How CloudTalk Can Work for You.
Uncovering Skype for Business Hidden Charges
While Skype for Business had affordable base pricing, many users encountered unexpected fees, such as:
- International call charges: Rates varied depending on the destination.
- Add-ons for call recording: Not included in basic plans, required additional costs.
- Support costs: Businesses often needed IT support for setup and troubleshooting.
- Scalability fees: Larger deployments required additional Microsoft licensing.
Still Looking for a Skype for Business Replacement? Get a Free Consultation & Trial with CloudTalk.
What Replaced Skype for Business?
- In 2021, Microsoft phased out Skype for Business, transitioning users to Microsoft Teams as part of its Microsoft 365 ecosystem.
- This shift meant businesses had to adopt new licensing models, often bundled with other Microsoft services, making costs more complex.
- Microsoft Teams has faced user complaints about bugs, call quality issues, and complexity, leading many businesses to seek alternative solutions.
- For companies that want business-grade VoIP without Microsoft 365 licensing requirements, alternatives are available.

Skype for Business’s Pros and Cons
pros & cons
Pros:
- Familiar Interface: Many users were comfortable with Skype’s UI.
- Integrated with Microsoft 365: Convenient for Microsoft users.
- Basic Video Calling & Chat: Simple communication tools.
- Security & Encryption: End-to-end encryption for privacy.
Cons:
- Limited Third-Party Integrations: Primarily locked into Microsoft’s ecosystem.
- Call Quality Inconsistencies: Reports of lag, dropped calls, and audio issues.
- Hidden Costs: Additional fees for advanced features.
- Complex Licensing: Difficult for businesses that don’t want to be tied to Microsoft 365.
CloudTalk: The Best Replacement for Skype for Business
Skype for Business had a good run, but now it’s officially battling gators on the green. If your business relied on it, you’re probably wondering—what now?
The good news is that you don’t have to settle for a clunky replacement or get locked into complicated pricing plans. CloudTalk makes the transition easy. Whether you need to keep your old number or set up a better call routing system, we’ve got you covered.
No hidden fees. No complicated setups. Just a simple, reliable way to handle your business calls.
Skype for Business is gone, but your business still needs a great calling solution. Let’s make the switch easy.
Looking for the Best Vanguard and Affordable Option after Skype?
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FAQs
How much is Skype for Business per user?
Skype for Business pricing varied. Personal plans were free, while Skype dialer pricing depended on calls. Business plans are discontinued.
How much does Skype for Business cost?
Before its retirement, Skype for Business plans started at free for personal use, with business tiers ranging from $2 to $5.50/user/month. Since 2021, however, Microsoft has fully transitioned to Teams.
Is Skype for Business being discontinued?
Yes, Skype for Business was discontinued in 2021 and replaced by Teams. Businesses now seek Skype dialer pricing alternatives.
What’s the difference between Skype and Skype for Business?
Skype was for personal use, while Skype for Business plans offered more security, integrations, and conferencing tools before its retirement.
Is Skype for Business free to use?
A Skype for Business free plan existed, but most companies used paid plans. Now, businesses must switch to alternatives with better Skype cost value.
What did the Business Standard plan include?
Skype for Business Standard included secure messaging, HD video calls, file transfer, Outlook integration, and meeting recording.
Is Skype for Business still part of Office 365?
Skype for Business Online was retired on July 31, 2021, and replaced by Microsoft Teams as the default tool for messaging, meetings, and collaboration.