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Microsoft Teams Premium: Does Your Business Really Need It?

The way we work has completely transformed over the past few years. What started as a temporary adjustment during the 2020 pandemic has quickly became a permanent shift; one that has changed how teams connect, collaborate, and communicate. With meeting attendance skyrocketing by more than 150% since March 2020, it’s clear that remote and hybrid work have become the new normal.

And has workplaces evolved, so has the technology that supports them. Tools like Microsoft Teams, Slack, and a growing list of others have reshaped how businesses operate, making it easier than ever to meet, share ideas, and get things done from anywhere. Some of these tools are free, others come with a price tag, and many offer premium features designed to boost productivity and enhance security.

Microsoft Teams Premium is one such tool. And that brings us to a key question: how do you know what your business actually needs? More importantly, is it time to upgrade?

In this post, we’ll unpack what it is, how it differs from the standard version, and whether it’s a smart investment for your business.

Key Takeaways:

  • Teams Premium is an add-on, not a replacement; the cost is in addition to your existing Teams license.
  • Business Standard includes Teams Standard at no extra cost for most organisations.
  • For organisations seeking advanced meeting tools without broader AI features, Teams Premium offers a lower-cost alternative compared to adding Microsoft 365 Copilot or upgrading to Business Premium.
  • Consider whether the time saved and productivity gains from Premium justify the extra AU$15 per user/month.
Microsoft teams logo

What Is Microsoft Teams… and How Premium Changes the Game

While you might think Microsoft Teams is just a messaging app, it’s actually a cloud-based communication and collaboration hub within the Microsoft 365 suite. Think of it as a digital office, that includes messaging, video calls, file sharing, and app integrations all in one place.

Teams helps your business stay connected, organised, and productive, whether you’re on desktop, web, or mobile. It’s designed to give teams of any size a centralised space for conversations, meetings, and file storage, eliminating the need to juggle multiple tools.

So, what is Microsoft Teams Premium?

Teams Premium is an add-on enhancement to your existing Teams setup. It builds on the standard Teams experience, preserving all the features you already rely on while adding advanced tools designed for businesses with more complex needs.

To use Teams Premium, you need an active Microsoft 365 or Office 365 subscription that includes Teams. You can’t purchase Premium on its own as it’s designed to layer on top of your existing license, enhancing what’s already working rather than replacing it.

How Premium Builds on the Standard Version

With Teams Premium, you keep all the core capabilities of standard Teams (chat, file sharing, video conferencing, and Microsoft 365 integrations) but gain access to advanced functionality that standard Teams doesn’t offer.

Microsoft has also moved several features that were once free into the Premium tier, including:

  • Live translated captions (after a 60-day grace period)
  • PowerPoint Live chapters in meeting recordings (after 60-day grace period)
  • Timeline markers in recordings for participant join/leave events (after 60-day grace period)
  • Custom Together Mode scenes (after a 30-day grace period)
  • Enhanced Virtual Appointments features, such as SMS notifications and analytics

Key Goals of Teams Premium

Teams Premium focuses on five main objectives that go beyond standard Teams functionality:

  1. Intelligent Productivity Enhancement: Leveraging AI and OpenAI GPT technology, Premium can automatically generate meeting notes, suggest tasks, and create personalized highlights. It even adds automated chapters for recordings and multilingual meeting recaps, ensuring you never miss critical information.
  2. Elevated Meeting Personalization: Customize meetings with branded elements, company backgrounds, and pre-built templates. This is perfect for client presentations or internal sessions where a polished, professional look matters.
  3. Advanced Security Protection: Teams Premium adds extra layers of security for sensitive data, including watermarks, sensitivity labels, end-to-end meeting encryption (up to 200 participants), and granular controls over recording and transcription permissions.
  4. Enhanced Virtual Appointments: Streamline customer-facing interactions with advanced scheduling tools, SMS notifications, and detailed analytics to track appointment performance.
  5. Immersive Experiences: Premium unlocks access to Microsoft Mesh, enabling 3D meeting spaces for onboarding, conferences, and company-wide events, creating a more engaging and interactive experience for participants.

By consolidating these advanced features under one license, Teams Premium can reduce the need for multiple third-party tools for webinars, virtual appointments, and meeting intelligence, making your collaboration ecosystem simpler BUT more powerful.

Teams Premium vs Standard: Key Feature Differences

Feature

Standard Teams

Teams Premium

Why It Matters

AI-Powered Meeting Summaries & Notes

Basic meeting notes; manual task tracking

AI-generated meeting recaps with speaker identification, topic summaries, task suggestions, organized chapters, and audio recaps for up to 8 meetings; supports 9 languages including English, Spanish, Japanese, French, German, Portuguese, Italian, Mandarin, and Korean

Lets participants focus on discussions instead of note-taking; makes catching up on meetings faster and more accurate

Advanced Security & Compliance

Standard encryption; basic meeting controls

Watermarking on shared content and video feeds; end-to-end encryption for meetings up to 200 participants; granular controls over recording and participation; automatic sensitivity labels via Microsoft Purview

Protects sensitive information and ensures compliance for regulated industries; prevents data leaks and unauthorized recordings

Custom Branding & Meeting Templates

Limited customization

Full branding across meeting invites, pre-join screens, and lobbies; meeting templates to pre-set security, AV, recording, and engagement settings

Creates a professional, consistent look for internal and client meetings; saves time for organizers

Enhanced Webinar & Event Tools

Webinars up to 20,000 attendees; basic registration

Webinars up to 50,000 attendees; waitlist management, registration limits, customizable reminders; virtual green room for presenters; Microsoft eCDN support; town hall insights

Enables larger-scale events with better attendee management and presenter control

Real-Time Translation & Accessibility

Captions in one language; limited accessibility features

Live translated captions in meetings, webinars, and town halls; organizers can pre-select up to 10 languages; transcripts can be translated into participant-preferred languages

Supports multilingual teams and enhances accessibility, making meetings inclusive for all participants

Working in home office on Microsoft teams

Teams Premium vs Standard Cost and Licencing

Before upgrading to Microsoft Teams Premium, it’s important to understand the financial and licensing implications. Premium operates differently from most Microsoft services, so careful consideration is key.

Teams Premium License vs Standard Access

Teams Premium is not a standalone product. It functions exclusively as an add-on license. This means:

  • Users must maintain a standard Teams license alongside a Teams Premium license to access all Premium features.
  • You cannot replace your existing Teams subscription with Premium; it only enhances your current setup.
  • Most organisations already access standard Teams through Microsoft 365 business or enterprise subscriptions, often at no extra cost.

Teams Premium vs Standard Pricing

Pricing Component

Microsoft 365 Business Standard

Teams Premium (Add-on)

Notes

Price (per user/month, paid yearly)

AU$18.70

AU$15.00

Teams Premium is an add-on; you must already have a Teams license

Annual Subscription

Yes, auto-renews

Yes, auto-renews

Monthly billing for Premium begins Dec 1, 2024, at 5% higher than the annual upfront cost

Trial Option

Typically 1-month free trial

Sometimes 1-month free trial

Subscriptions auto-convert to paid after trial

Other Add-ons / AI

Microsoft 365 Copilot: AU$44.90 per user/month

Microsoft 365 Copilot: AU$44.90 per user/month

Copilot can be added to either plan for advanced AI functionality

Higher-Tier Alternative

Microsoft 365 Business Premium: AU$32.90 per user/month

N/A

Business Premium includes Business Standard features plus advanced security and device management

 

Who Needs a Teams Premium License?

Not every user in your organisation requires a Premium license. The need depends on roles and feature usage:

  • Organiser-Based Features: If the meeting organizer has Premium, attendees automatically gain access to organizer features during the meeting. Delegates assigned by the organiser do not need Premium.
  • Attendee-Based Features: Certain Premium capabilities are only available to users with their own Premium license. Other attendees cannot access these features.
  • Admin-Based Features: Some tools primarily benefit IT administrators and require Premium licenses for Teams admins.
  • External Participants: Generally, external attendees don’t need Premium to join meetings. Exceptions include scenarios like end-to-end encrypted meetings. Attendees without Premium can still view live translations if the organizer has a Premium license.
Young woman having a discussion meeting in video call with her team work - Focus on right hand

When Does Teams Premium Make Sense?

Flexible work arrangements have changed the way businesses evaluate collaboration tools. Deciding between Teams Premium vs Standard comes down to your organisation’s specific needs. While some scenarios clearly justify the extra investment, others may not deliver enough value to warrant an upgrade.

For Remote and Hybrid Teams

Remote and hybrid workforces face unique challenges that Teams Premium directly addresses. AI-powered meeting notes and action items close the “I missed the meeting” gap, ensuring everyone stays up to date on critical discussions. Real-time translation capabilities remove language barriers, making global teamwork seamless.

In fact, 96% of users find AI features helpful in daily work. Many report that intelligent recaps and AI-generated notes reduce meeting anxiety and make information review effortless. For geographically dispersed teams, these features foster a more inclusive and productive work environment.

For Client-Facing or High-Stakes Meetings

Organisations that conduct regular client meetings or high-stakes presentations gain significant benefits from Teams Premium. Custom meeting themes and branded backgrounds offers a polished, professional image to clients and partners.

Meanwhile, watermarking for shared content and video feeds protects sensitive information from accidental leaks. For businesses where professionalism and information security are critical, Premium clearly adds tangible value over the standard version.

For Organisations With Strict Compliance Needs

Industries handling sensitive data (like healthcare, finance, and legal services) require robust security measures. Teams Premium provides end-to-end encryption, watermarking, and automated sensitivity labels that enforce meeting protection policies.

These features simplify compliance management and ensure sensitive information stays secure, making Teams Premium an essential tool for organisations with strict regulatory obligations.

For Companies Hosting Frequent Webinars or Large-Scale Events

Organisations that host webinars or virtual events regularly will find Premium especially essential. Features like waitlist management, manual approval of registrations, and customizable reminder emails make event management smoother.

Teams Premium also allows up to 50,000 attendees for town halls and large webinars, compared with 20,000 in standard Teams. Combined with custom branding options for registration pages and webinar emails, Premium ensures your events are professional.

How Teams Premium Compares to Other Tools

When evaluating collaboration tools, it’s important to understand how Teams Premium stacks up against other options, too, both within Microsoft’s ecosystem and beyond.

Teams Premium vs Microsoft 365 Copilot

While both products leverage AI, they address different needs:

  • Teams Premium focuses on meeting enhancements, including branding, advanced management tools, and security features.
  • Copilot aims to boost productivity across the entire Microsoft 365 suite, from Word and Excel to Teams.

The main overlap is intelligent meeting recaps, which both services provide. However, the cost difference is substantial: Copilot runs around AU$44.90 per user per month when paid yearly, or AU$47.15 per user per month when paid monthly, making Teams Premium’s monthly fee much more modest.

The good news? You can use both together. They’re designed to complement each other rather than compete, letting you enhance meetings with Premium while leveraging Copilot for broader productivity gains.

Teams Premium vs Otter.ai and Fireflies.ai

Teams Premium works exclusively within the Microsoft ecosystem, whereas Otter.ai and Fireflies.ai support multiple platforms, including Google Meet, and Teams.

  • Fireflies.ai costs roughly AUD 19 per user/month when paid annually, putting it in the same price range as Teams Premium.
  • Fireflies.ai integrates with over 40 apps outside Microsoft, offering broader functionality. Teams Premium, by contrast, enhances Microsoft-native features, making it more seamless if your organisation is fully embedded in Microsoft 365.

Ultimately, your decision comes down to platform preferences:

  • Are you already committed to Microsoft 365 and want deep integration? Teams Premium may be the best choice.
  • Do you need flexibility across multiple platforms? A tool like Fireflies.ai or Otter.ai might be a better fit.

Teams Premium vs Standard: Making The Choice

Choosing between Teams Standard and Teams Premium ultimately depends on your business’s specific collaboration needs and meeting patterns. Remember, Teams Premium enhances, not replaces your existing setup. Licenses can be assigned selectively, ensuring cost-effectiveness while upgrading the parts of your business that benefit most.

Evaluate your team’s collaboration patterns, weigh potential productivity gains, and match Premium’s capabilities to your real-world needs. The right choice improves efficiency, maintains security, and ensures your business operates at its professional best.

Ready to optimise your Teams experience?

Contact CRT Network Solutions today for expert guidance, fast IT support, and seamless Microsoft Teams integration across the Sunshine Coast and Brisbane. We’ll ensure your systems are secure, efficient, and performing at their best, so your team can focus on what matters most.

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