Over the last decade, I’ve seen the evolution of Direct Routing from what was the only alternative to Microsoft Calling Plans to now it being just another way to connect the PSTN to Microsoft Teams.
We now have Operator Connect (and more recently Operator Connect Mobile), which is widely regarded to become the most common method enterprises will enable Microsoft Phone System.
And to top things off, we now have the Teams Pay-As-You-Go calling option, which in the UK and Canada starts from a mere $3 per user per month on top of your Teams Phone Standard license.
What is the future of Direct Routing?
- Will it become more and more of a niche option?
- What does the opportunity look like for channel partners looking to capitalize on the Teams telephony opportunity where direct routing was the go-to option?
- Many have invested in SBCs to build a service offering so will all that effort go to waste?
Certainly, many of the comments circling in various discussions online state the race to the bottom is not a race anymore.
The bottom is already here.
It’s hard to argue that if a business doesn’t make many outbound phone calls and is happy to port its numbers to Microsoft or just be issued new ones then Microsoft PAYG is very attractive.
It’s easy, quick, and cheap. Direct Routing as a Service (DRaaS) providers are likely to be more expensive when you factor in the cost to rent the phone number and the per user per month fee associated with the use of their infrastructure.
Where the argument starts to make more sense commercially for DRaaS is when users do make more than the odd outbound call, as the Microsoft rate card isn’t that competitive (see detailed review of Microsoft PAYG calling costs).
But with so much voice traffic staying on-net, will users actually dial enough real phone numbers to realize the savings?
Well the good news is that many businesses still need to talk to their customers. And in a business to consumer model, it’s unlikely that will happen over a Teams meeting.
Think education, legal, health, local government, retail. This list goes on.
Why consider Direct Routing?
So can Direct Routing providers now breathe a sigh of relief?
Up until mid-2021, the answer would most likely have been a YES!
But then along came Operator Connect, which allows businesses to keep their phone numbers with their existing provider and move them to Teams.
Sounds ideal. But the current reality is it can be a bit of a project due to a lack of automation tools And, if the implementation is anything other than vanilla, it may not be the best fit.
Having said that, Operator Connect certainly has its place and continues to be the fastest-growing option for enabling PSTN connectivity in Microsoft Teams.
| Microsoft Teams Direct Routing | Microsoft Operator Connect |
| Bring your own carrier | Choose from approved carriers |
| On-premises or cloud managed SBC | Cloud only |
| Session border controllers must be approved | Operators must be verified by Microsoft |
| Managed, indirect connection between carrier and Microsoft | Direct connection between carrier network and Microsoft |
| Numbers managed on third-party software | Numbers managed in Teams Admin Center |
| Different interface per SBC | Same interface if you have multiple carriers |
| Available wherever your SBC is | Not available in all countries |
| Third-party SBC SLA | Microsoft SLA |
| Support for legacy PBX functionality via SBC | Legacy PBX functionality not supported |
| Supports all PBX integrations | Supports Microsoft 365 approved integrations |
| Supports hybrid deployments | No support for hybrid deployments |
| Configurable voice routing | Standard voice routing only |
Where does this leave Direct Routing?
It’s widely accepted Direct Routing is the most flexible way to implement Teams calling due to the use of an SBC. These can be configured to serve all mannerr of use cases, especially ones where a hybrid setup is required.
Co-existence with a PBX, for example, or integration with an analog estate.
So an environment with an element of complexity is Direct Routing’s best friend. However, gone are the days when enterprises accepted time-consuming complex projects involving expensive professional services.
So for DRaaS providers, the key to success in these environments seems to be winning the battle of simplicity and automation – and keeping setup costs low (ideally free).
Why I joined Callroute
Callroute, for me personally, was an opportunity to build a service offering unparalleled simplicity and automation.
Our mission is to create a global service that is a real alternative to Operator Connect – and with the benefits of Direct Routing.
The Callroute service allows businesses to connect their existing SIP trunk to Teams in minutes. You can then leverage the benefits of the flexibility of Direct Routing for no extra cost.
With the right levels of automation to make it commercially viable, Direct Routing is still the most flexible and powerful option to bring the PSTN to Teams.
Microsoft’s PAYG option may seem cheap and easy on the face of it. But it will get expensive if you pick the phone up regularly. And, as with other Calling Plan options, it’s very limiting in respect of more complex environments.
So I think it’s safe to say Direct Routing is here to stay and at Callroute we’ll continue to innovate to make it the standout Teams Calling go-to option.
Callroute is focussed on enabling the channel so please feel free to get in touch if you are looking to add a Microsoft Teams Calling solution to your portfolio.
