Why use Direct Routing for Microsoft Teams?

Cost savings, better quality, more reliability are just some of the reasons why businesses are implementing Direct Routing. And while that all sounds great, it might also sound like a lot of work to save a couple of pennies and avoid a dropped call every now and then.

The reality is, it couldn’t be easier to implement Direct Routing, and the savings can be far bigger than you might think.

Why are businesses implementing Direct Routing?

There are lots of reasons why organizations of all sizes and structures are starting to leverage Direct Routing for Microsoft Teams. As companies maintain remote work as a perk for their employees, they look to Teams to collaborate with colleagues all around the world. But Teams isn’t a voice solution, and to get high quality voice and increased functionality, businesses are partnering with carriers through Direct Routing.

The upshot? Carrier-grade voice and increased flexibility for a fraction of the cost.

Businesses save with Direct Routing

For larger organizations, the cost of working exclusively off Calling Plans with Teams is huge, and may not be worth the benefit of cutting out their PBX. That’s where Direct Routing comes in. Enterprises with more than 500 employees that want to work exclusively in the Teams environment are realizing huge cost savings— in some cases up to 40% of their telephony bill— by integrating a true telephony provider for voice instead of using the built-in Calling Plans within Teams.

Smaller companies usually aren’t as compelled to implement Direct Routing because the cost associated with integrating a third party provider isn’t a whole lot cheaper than the built-in Calling Plans from Microsoft. Having said that, small and medium businesses are also benefiting from reduced cost by debundling their communications provider, especially if they are calling globally. How? Going direct-to-carrier means cutting out the aggregators and carriers that Microsoft uses to gain PSTN access. By cutting out the middleman, businesses also cut out the fees. What’s more, with Telnyx, you only pay for the SIP trunking minutes you use, ensuring you don't pay over the odds.

As a global carrier, Telnyx offers full PSTN replacement in 25 markets. Access to local numbers, insight into regulations, and partnerships with Tier-1 carriers globally mean that you should trust Telnyx with your global communications. We deal with the latest telephony regulations everyday, which means our products are always compliant and you’ll never have to worry about disruption to your service.

Businesses can set up Direct Routing in a few minutes

Another barrier facing companies with limited resources is the often complex integration required to get Direct Routing up and running. These companies may have smaller IT departments who don’t have the bandwidth or expertise to implement a service like Direct Routing. If they want to integrate a telephony partner—they need outside help, making it even more expensive.

However, these businesses shouldn’t dismiss Direct Routing as being too complex or costly. At Telnyx, we have taken a self-service approach to Direct Routing, meaning companies don’t need a full IT department to enjoy cost savings and better quality calling. Once a business has a Telnyx Mission Control Portal account and a Microsoft Teams business or enterprise license, they can follow our 20-minute integration guide to get up and running—no need to talk to a salesperson or account manager.

Businesses don't need complex telephony setups to set up Direct Routing with Telnyx

Some drawbacks? Session Border Controllers (SBCs) are required for Direct Routing to function, but Microsoft doesn’t provide an SBC to pair with Microsoft Teams. They do recommend some approved SBC providers but this can be a minefield for businesses who don’t have experience working with SBC providers.

To make things even easier for customers (not to mention more cost effective), the Telnyx Direct Routing integration for Microsoft Teams includes an integrated Telnyx SBC as standard, meaning that businesses can cut out their current hosted SBC provider.

The Telnyx SBC is fully integrated with Direct Routing, so our customers don't need an on-premise solution from a third party provider. Telnyx does not charge for the SBC, meaning customers can save even more by switching to Telnyx from Microsoft’s Calling Plans. An integrated SBC also means greater security, easier setup, faster troubleshooting as companies can cut out the middleman and deal directly with the provider.

How do I get started with Microsoft Teams Direct Routing?

All you need to get started is a Telnyx account and a Microsoft Teams business or enterprise license. Once you're set up you can follow our Bring Your Own Carrier guide and have Direct Routing for Microsoft Teams set up in no time.

If you still have questions surrounding Direct Routing, reach out to our team of experts.

FAQ

What is Microsoft Direct Routing? Microsoft Direct Routing connects Microsoft Teams to the public switched telephone network through a certified session border controller so users can place and receive external voice calls. It lets you route calls through your chosen carrier while staying in the Teams experience.

What is the difference between Direct Routing and Microsoft Calling Plans? Direct Routing uses your own telecom provider and SBC to reach the PSTN. Microsoft Calling Plans make Microsoft your operator, which simplifies setup but reduces flexibility in carriers, coverage, and pricing.

What does a Microsoft Direct Routing partner do? A Direct Routing partner designs, deploys, and manages the SBC interconnect, Teams Phone configuration, number porting, and call routing with QoS. Many also handle monitoring, compliance, and 24x7 support to keep global voice stable.

How do I choose the right Direct Routing partner? Prioritize partners with certified SBCs, proven Teams Phone deployments, global PSTN reach, and clear SLAs. Strong partners publish deep developer references, including precise materials such as messaging type documentation that signal mature APIs and predictable integrations.

How can I check if a company is a Microsoft partner? In Microsoft 365, open the admin center and view Settings, Partner relationships to see your partner of record. You can also search the Microsoft partner directory by location, solution area, and specialization.

What are the technical requirements to deploy Direct Routing? You need Teams Phone licenses, a certified SBC, SIP trunks, public DNS with valid certificates, and network QoS with the right ports and codecs allowed. If you also plan application messaging, you will add separate services and APIs like an MMS API because Direct Routing covers voice only.

Does Direct Routing include SMS or MMS messaging? No, Direct Routing is limited to PSTN voice and does not provide business messaging. For omnichannel planning, align your use cases with the differences between SMS and MMS so you choose the right channel alongside Teams voice.