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Private and group chat will still work in Microsoft Teams Essentials, though. Microsoft Teams Essentials also drops the teams and channels functionality of Teams, so it’s more targeted at businesses that rely on apps like Teams or Zoom for video calling and meetings. Essentials also lacks meeting recording and transcripts functionality, real-time translation, breakout rooms, and whiteboard integration. Essentials only offers 10GB of OneDrive storage, compared to the 1TB available on Business Basic. The differences between Microsoft Teams Essentials and Microsoft 365 Business Basic plans are primarily around Teams functionality and cloud storage.
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Microsoft Teams Essentials has all the regular Teams calling features. Until now, small businesses have had to choose the Microsoft 365 Business Basic plan - priced at $5 per user per month and increasing to $6 in March - or rivals like Zoom, Slack, Google Workspace, and more. Microsoft Teams Essentials fills the gap for smaller businesses that has existed since Teams launched nearly five years ago. “It brings together features small businesses need to serve customers, including unlimited group video calls for up to 30 hours, group chat, file sharing and calendaring.” “It’s the first standalone offering of Microsoft Teams designed specifically with small businesses in mind,” explains Jared Spataro, head of Microsoft 365. This standalone version makes Teams even more of a Zoom competitor, as Microsoft is dropping its Slack-like channels functionality in favor of a more simplified chat interface and a focus on meetings and video calls. Microsoft Teams Essentials will be priced at $4 per user per month and provide access to the core meeting features of Teams without the typical Office app bundling that requires a more expensive Microsoft 365 plan. Microsoft is creating its first standalone version of Microsoft Teams for small businesses.