New Technology: The Projected Total Economic Impact™ Of Microsoft Teams Phone Mobile

Cost Savings And Business Benefits Enabled By Teams Phone Mobile

A Forrester New Technology Projected Total Economic Impact Study Commissioned By Microsoft, December 2024

In today’s dynamic work environment, unified communication solutions are essential. With remote and flexible work on the rise, seamless communication tools are the fundamental enablers of productivity and collaboration — but native mobile calling has been a gap. According to Forrester, the number of global smartphone users reached 5.8 billion in 2024, with mobile data traffic expected to grow by 50% annually1. Unified communications-as-a-service (UCaaS) platforms meet this demand by bringing meeting, messaging, and calling functionalities —with their simplified IT management, security, and scalability — and integrating them with mobile calling plans, creating a better mobile collaboration experience. The widespread adoption of 4G and 5G networks further underscores the importance of UCaaS in supporting effective flexible work.2

Microsoft Teams Phone Mobile integrates a user’s mobile phone number with their Microsoft Teams account, allowing them to have a single phone number that works across their mobile service and Microsoft Teams and enabling a seamless transition between networks and devices. It is designed to provide a unified communication experience that supports flexible work environments and enhances mobility and connectivity for organizations while allowing them to maintain the right security and compliance operating standards.

Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Teams Phone Mobile.3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Teams Phone Mobile on their organizations.

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Projected return on investment (ROI)

102% to 348%

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Projected net present value (NPV)

$5.4M to $18.2M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed seven representatives with experience using Teams Phone Mobile and surveyed 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization. The composite has 8,000 employees, and 20% are high-mobility, high-connectivity workers.

Interviewees said that prior to using Teams Phone Mobile, their organizations were using on-premises telephony systems with desk phones as well as corporate-provided mobile lines, each with separate numbers and functionalities. This created an environment where employees had to mindfully manage two separate numbers depending on whether they were at their desk or on mobile. Call quality issues (often due to poor network) further disrupted user productivity. On the management side, IT and telephony teams found it challenging to manage multiple numbers and devices for each user, not to mention ensuring that they do so in a secure and compliant manner. All of these factors collectively hindered overall efficiency and connectivity within the organizations.

Interviewees said that after investing in Teams Phone to enable cloud calling and using Teams Phone Mobile to enable connectivity for highly mobile users, their organizations saw enhanced productivity and flexibility, as employees could join calls from anywhere, even while commuting. The platform improved call quality and ensured seamless transitions between Teams and mobile calling functionality, reducing disruptions and boosting communication reliability. Unifying communication tools into a single platform simplified IT and telephony management. Crucially, Teams Phone Mobile ensures that its security and compliance capabilities — like mandated call recording — apply to every conversation.

Projected Benefits Of Teams Phone Mobile

Increased IT efficiency in managing telephony Cost savings related to legacy environment Increased end-user productivity Improved business continuity Intelligent calling and meeting recaps using Microsoft 365 Copilot Reduced audits/fees or other effort with compliance and governance Avoided data roaming costs Others

Base: 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile
Source: A commissioned study conducted by Forrester Consulting on behalf of Microsoft, October 2024

Key Findings

Quantified projected benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Up to 20% in end-user productivity gain per user per year. Teams Phone Mobile enables employees at the composite organization to maintain high productivity levels even while on the go. Users that call in from their mobile phones are supported with key Teams Phone Mobile features, providing the same — or better — experience as from their desks. Mobile users will now benefit from all of the intelligent communication capabilities of Teams Phone (e.g., background noise suppression) when mobile calls are uplifted to the Teams app. The 5% to 20% productivity gain effectively saves employees at the composite between 13 and 52 works days per year, translating to benefits ranging from $8.7 million to $19.6 million over three years.
  • Cost savings from retiring up to 40% of on-premises telephony services. Using Teams Phone and enabling connectivity through Teams Phone Mobile streamlines the composite organization’s communication infrastructure by consolidating legacy telephony systems while still providing individual mobile lines for users. This consolidation reduces operational costs and complexity by eliminating the need for separate legacy systems. For the composite organization, this results in annual savings ranging from $1.6 million to $3.3 million over three years.
  • IT efficiencies in managing telephony due to time savings between 30% and 60% by consolidating communication tools into one platform. As a result of being able to retire on-prem telephony equipment and duplicative numbers, the composite organization reduces the time spent managing telephones. The time savings increases from 30% in the first year to 60% in the third year, effectively saving up to 82 days per IT employee managing the telephony service. For the composite organization, this efficiency translates to cost savings of $198,000 to $312,000 over three years.
  • Annual security and compliance savings of 14%. Teams Phone Mobile enables the composite organization to reduce compliance- and security-related expenses by offering a secure platform that adheres to regulatory standards — for example, financial advisor call recording — even on mobile. Regardless of whether calls originate on a cell phone or through the Teams app, the platform consistently applies security and compliance policies. This ensures that all communications are protected, giving employees the confidence to work from any location. Having a secure and compliant communication environment not only boosts productivity, but it also minimizes the risk of compliance violations, leading to cost savings of $93,000 to $218,000 over three years.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Better call identification. Teams Phone Mobile ensures that outgoing calls are clearly identified, reducing the chances of being marked as spam due to the “unknown number” problem. By displaying a consistent company number and branding, recipients can easily recognize the caller. When customers or patients return the call, they can be directed to an auto-attendant or call queue, providing professional experience. This helps in retaining patients, securing appointments, and maintaining business continuity.
  • Employee experience. With Teams Phone Mobile, the composite’s employees enjoy greater satisfaction and confidence in their ability to be productive from anywhere. This key benefit allows the use of a single mobile phone number to stay connected when not at their desks, enabling activities that were previously restricted by the need to use on-premises telephony systems and desk phones.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • External cost to license Teams Phone Mobile. The composite incurs costs from both Microsoft and the cellular network provider when implementing Teams Phone Mobile. It pays a monthly per-user fee for Teams and Teams Phone licenses along with variable costs for mobile connectivity based on the chosen provider and plan. The composite organization spends $5.1 million over three years on both its Microsoft licenses and cellular network providers.
  • Internal time to set up Teams Phone Mobile and train users. Setting up Teams Phone Mobile requires a coordinated effort from the composite’s IT team and a strategic approach to user training. This involves a phased rollout with a pilot group and continuous evaluation to identify and address areas needing more training and engagement. For the composite organization, the three-year cost of deployment of Teams Phone Mobile and user training is a little over $15,000.
  • Ongoing management of Teams Phone Mobile. Ongoing management of Teams Phone Mobile involves a coordinated effort from the composite’s IT team with a few administrators dedicating part of their time to regular updates, maintenance, and user support to ensure smooth and secure system operation. For the composite organization, the three-year cost for ongoing management of Teams Phone Mobile is nearly $96,000.

Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Microsoft Teams Phone Mobile:

  • Projected high impact of a $18.19 million NPV and projected ROI of 348%.
  • Projected medium impact of a $11.78 million NPV and projected ROI of 225%.
  • Projected low impact of a $5.36 million NPV and projected ROI of 102%.

Key Statistics

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    Projected return on investment (PROI):

    102% to 348%
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    Projected benefits PV:

    $10.6M to $23.4M
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    Projected net present value (PNPV):

    $5.4M to $18.2M
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    Total costs:

    $5.2M
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Projected Benefits (Three-Year)

End-user productivity Savings from retiring on-premises legacy services IT efficiencies in managing telephony Savings related to security and compliance activities

Figures in chart are projections for the mid-case scenario.

Three-Year Projected Financial Analysis For The Composite Organization

New Tech TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering an investment in Teams Phone Mobile.

The objective of the framework is to identify the potential cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the projected impact that Teams Phone Mobile can have on an organization.

  1. Due Diligence

    Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Teams Phone Mobile.

  2. Early-Implementation Interviews And Survey

    Interviewed seven representatives of organizations with experience using Teams Phone Mobile in a pilot or beta stage and surveyed 228 respondents from organizations with telephony systems that can be replaced by Teams Phone Mobile to obtain data about projected costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. Projected Financial Model Framework

    Constructed a projected financial model representative of the interviews using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.

  5. Case Study

    Employed four fundamental elements of New Tech TEI in modeling the investment’s potential impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

Disclosures

Readers should be aware of the following:

This study is commissioned by Microsoft and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Teams Phone Mobile.

Microsoft reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

Microsoft provided the customer names for the interviews but did not participate in the interviews.

Consulting Team:

Adi Sarosa

M
K

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