Cost for Skype for Business: What to Expect
Skype for Business is part of Microsoft 365, not a standalone product you buy outright. The cost for Skype for Business depends entirely on which Microsoft 365 plan you choose, whether you need it for a single user or an entire organization, and whether you require add-ons like phone system or enterprise voice. Most small businesses pay between $5 and $36 per user per month, while enterprise deployments with advanced telephony and support can run significantly higher when you factor in infrastructure and ongoing management.
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Understanding the real cost for Skype for Business means looking past the sticker price. Licensing, required add-ons, admin overhead, and migration expenses all shape what you actually spend.
Microsoft 365 Plans That Include Skype for Business
Skype for Business Online is bundled into specific Microsoft 365 business plans. Here is a comparison of the plans that include it:
| Plan | Monthly Price per User (USD) | Skype for Business Included | Key Extras |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | Yes | Web-only Skype for Business, Exchange Online, OneDrive, Teams |
| Microsoft 365 Business Standard | $12.50 | Yes | Desktop Office apps, desktop Skype for Business |
| Microsoft 365 Business Premium | $22.00 | Yes | Advanced security, Azure AD P1, desktop client |
| Microsoft 365 E3 | $36.00 | Yes | Enterprise-grade compliance, advanced PBX features |
| Microsoft 365 E5 | $57.00 | Yes | AI-powered analytics, advanced compliance, Defender |
Plans below Business Basic, such as Office 365 E1, include a limited web-only version of Skype for Business but lack the desktop client and full audio-video conferencing features.
Standalone Skype for Business Licensing
There is no longer a standalone Skype for Business Online subscription you can purchase separately. Microsoft retired the stand-alone Skype for Business Online Plan 1 and Plan 2 for new purchases. Existing customers with those plans can keep them, but new deployments must go through a Microsoft 365 or Office 365 license that includes Skype for Business. This means the cost for Skype for Business is effectively the cost of the umbrella Microsoft 365 plan.
Phone System and Enterprise Voice Costs
If you need PSTN calling, auto attendants, call queues, or voicemail, these are add-ons with their own costs:
- Phone System: $8.00 to $12.00 per user per month, depending on the Microsoft 365 plan you are on.
- Domestic Calling Plan: Typically $5.00 to $10.00 per user per month for a set number of minutes.
- International Calling Plans: Vary widely by region, often $10.00 to $25.00 per user per month.
- Audio Conferencing: $4.00 to $6.00 per user per month for dial-in meeting access.
These add-ons can push the effective cost for Skype for Business well beyond the base license, especially for contact centers or organizations with heavy phone traffic.
Infrastructure and On-Premises Costs
For organizations that run Skype for Business Server on-premises, the cost structure is completely different. You pay for Server licenses, CALs (Client Access Licenses), and the hardware or virtual machines to host it. This includes:
- Windows Server licenses
- SQL Server for the backend database
- Edge servers for external access
- Ongoing patching and maintenance
An on-premises deployment can cost tens of thousands of dollars upfront and requires specialized staff. The cost for Skype for Business on-premises is therefore a capital expenditure, not a monthly subscription.
Hidden and Ongoing Costs
Beyond licensing, organizations should budget for:
- Migration services: Moving from legacy PBX or older Lync deployments often requires consultants.
- Training: End-user and admin training is frequently overlooked.
- Support: Third-party support or Microsoft FastTrack may carry additional fees.
- Network upgrades: QoS, bandwidth, and SD-WAN improvements for reliable voice traffic.
These items can easily double the effective cost for Skype for Business if not planned for.
Is Skype for Business Still the Right Choice
Microsoft has been shifting focus to Microsoft Teams as the unified communications hub. Skype for Business Online remains available and fully supported, but new feature development is concentrated in Teams. Organizations evaluating the cost for Skype for Business should also compare it against the cost of Teams, which is included in the same Microsoft 365 plans. For many businesses, the real question is whether to invest in Skype for Business or redirect that budget toward Teams, which offers a broader feature set and a similar licensing model.