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Success With Skype: Building a Cloud PBX Using new E5 CALSuccess With Skype: Building a Cloud PBX Using new E5 CAL

This latest in a series exploring how to succeed with Skype for Business takes a look at Microsoft's new cloud communication services and pricing.

Kevin Kieller

November 30, 2015

4 Min Read
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This latest in a series exploring how to succeed with Skype for Business takes a look at Microsoft's new cloud communication services and pricing.

As announced today, Microsoft will open general availability on Tuesday, Dec. 1, for the cloud-based Skype for Business services that have up until now only been in preview. These new services, available as part of a new E5 CAL as well as separately, make it possible for companies in the U.S. to use Office 365 as their complete voice communications system, no longer requiring an on-premises PBX.

The two key components making a complete Microsoft voice PBX possible are:

With respect to PSTN Calling, as noted above, the feature is initially only available in the U.S. However, another option is PSTN Connectivity, which connects Office 365 Skype for Business to the PSTN through equipment that remains on a customer's premises. Microsoft offers several options for achieving this, but has only recently posted the documentation for either to TechNet in preview mode. Those are the "Cloud PBX with on-premises PSTN connectivity in Skype for Business Server 2015" and "hybrid voice with no on-premises server deployment" (also referred to as the Cloud Connector edition).

Beyond the two core voice components, two additional services come with the new licensing:

  • Skype Meeting Broadcast – enables broadcasting a Skype for Business meeting to up to 10,000 participants. Participants can attend using a browser-based application on almost any device. This is a one-to-many webcast. Note there are no limits or additive costs for unauthenticated attendees of a Skype Meeting Broadcast, nor is there a per-meeting charge. If you want to have the participants authenticated, then those participants would require a license.

What Will It Cost?
The new E5 Office 365 CAL seemingly includes everything and the kitchen sink for $35/user/month. On top of this, PSTN Calling adds $24/user/month if you want both domestic and international dialing plans. PSTN Calling for domestic-only calling is half this price at $12/user/month.

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You can also choose to add Cloud PBX capabilities to either the E1 or E3 CALs for $8/user/month. Then you would likely need to add either domestic or international calling plans for $12/user/month and $24/user/month, respectively.

With all of the calling plans, Microsoft allocates 3,000 minutes of calling per month per user. The minutes are pooled and shared across all of your users, so if you have 10 users then you would have a total pool of 10 x 3,000 = 30,000 calling minutes, for instance.

According to Microsoft, the base E5 CAL delivers $90/user/month of value for only $35/user/month. It attributes much of this "value" to the included analytics (Power BI and Delve) and the eDiscovery features (Equivio), so the value you perceive will depend on which of the E5 features you need.

Interestingly, Microsoft has added the Skype Meeting Broadcast feature, which allows up to 10,000 attendees to join a conference using a browser for audio, video and content, to the base E1 CAL. This capability then accrues to the E3 and E5 CALs.

Additionally, Microsoft has added a new Task Management feature to the E1 CAL. This capability is based on the Office 365 Planner announced in late September. Planner allows teams to create new plans, organize and assign tasks, share files, and chat about what they are working on. Planner also appears to have an attractive project dashboard where you can quickly check a project's status. I suspect small and medium-sized companies will use the task management capability more than the analytics and eDiscovery capabilities.

Limitations
With the introduction of the E5 CAL, Microsoft continues executing on an aggressive, multiyear roadmap that seeks to add many new voice and communications services to the Office 365 cloud. If you are looking to leverage the new E5 voice services in the short term, you should keep several key limitations in mind:

Microsoft first talked about PSTN connectivity and Office 365 in February 2013. At that time, Microsoft was hoping to bring these services to market by August 2014. While a year late, it is exciting to be able to explore these new options, at least in the U.S., starting tomorrow.

Are you excited about the new Office 365 E5 CAL? Do you plan to move your voice services to Office 365 any time soon? If not, what are your concerns? What do you think of the pricing model? Do you agree with Microsoft that the E5 CAL provides $90 of value for $35 per month?

About the Author

Kevin Kieller

Kevin Kieller is a globally recognized Unified Communications, Collaboration and technology analyst, strategist, and implementation leader. He is part analyst and part consultant, which ensures he understands both the "big picture" and the real-world realities.

Kevin and the team he created helps organizations select and successfully implement leading collaboration, communication and cloud technologies, focusing on delivering positive business outcomes. He helps vendors generate awareness and demand, position their products, often leveraging his unique understanding of the Microsoft ecosystem.

Kevin leads the elite BC Strategies Expert group and is part of the No Jitter technical analyst team where he covers Microsoft Teams, Copilot, UC, Collaboration, and AI for productivity. He presents regularly at Enterprise Connect and keynotes many other events focused on technology effectiveness.

He has led the development of many technology strategies for medium and large organizations, served as Bell Canada's lead UC strategist, developed new practice offerings for Softchoice, and advised hardware and software companies interested in expanding within, or competing against, the Microsoft ecosystem.

Kevin is comfortable interfacing at both the most senior (CxO) levels and getting "his hands dirty" helping technical teams.

Kevin has conceived, designed and overseen the development of software products and cloud-based services in the business, educational and recreational areas which have been used by millions of people in over 17 countries worldwide. A long time ago he created an award-winning game for the Commodore 64 and ever since has been committed to delivering business value through technology.