Self-Hosted Alternatives to Microsoft Teams

Why Replace Microsoft Teams?

Teams is bundled with Microsoft 365, which costs $6-22/user/month depending on the plan. For organizations already paying for Office, Teams feels “free” — but you are paying for it as part of a larger bundle. For organizations that do not need the full Microsoft 365 suite, the chat functionality alone does not justify the cost.

Beyond cost:

  • Microsoft 365 lock-in. Teams works best within the Microsoft ecosystem. Moving away from Teams means moving away from SharePoint, OneDrive, and Outlook integration — which is precisely the lock-in Microsoft designs for.
  • Data sovereignty. Your conversations, shared files, meeting recordings, and metadata sit on Microsoft’s infrastructure. For regulated industries or privacy-conscious organizations, this is a compliance liability.
  • Performance. Teams is notoriously resource-heavy. The Electron-based desktop app regularly consumes 500MB-1GB+ of RAM. Self-hosted alternatives are often lighter.
  • UI complexity. Teams tries to be everything — chat, video, file storage, project management, wiki. The result is a cluttered interface where finding features requires multiple clicks through tabs and menus.
  • Outages. Microsoft 365 experiences service-wide outages that affect millions of users simultaneously. Self-hosted infrastructure gives you control over your uptime.

What you give up: deep Office 365 integration (co-editing Word/Excel in chat), enterprise-grade video conferencing with hundreds of participants, and the convenience of a managed service backed by Microsoft’s infrastructure.

Best Alternatives

Mattermost — Best Overall Teams Replacement

Mattermost replaces the chat and collaboration aspects of Teams without the bloat. Channels, threads, direct messages, file sharing, search, and the built-in Calls plugin for voice/video. The interface is clean and focused on communication rather than trying to be a project management suite.

The Team Edition is free with no user limits. Mattermost also integrates with Jitsi for larger video meetings if the built-in Calls plugin is insufficient.

Strengths: Clean UI, built-in voice/video calls, 800+ integrations, easy deployment, strong mobile apps.

Weaknesses: No built-in file storage (use Nextcloud alongside it), no built-in wiki (use BookStack or Outline), video calls limited to small groups.

Best for: Teams that want focused chat and collaboration without the Microsoft 365 overhead.

[Read our full guide: How to Self-Host Mattermost]

Rocket.Chat — Best for Unified Communication

Rocket.Chat combines team chat with customer-facing communication tools that Teams does not offer — livechat widgets, omnichannel routing (WhatsApp, SMS, email), and video conferencing via Jitsi. If your organization uses Teams for both internal communication and customer support, Rocket.Chat consolidates both.

Strengths: Livechat, omnichannel, built-in video/audio, E2E encryption, large marketplace, federation via Matrix bridge.

Weaknesses: Some features behind Enterprise paywall since v7.x, MongoDB complexity, heavier resource usage.

Best for: Organizations that need internal chat and customer support in one platform.

[Read our full guide: How to Self-Host Rocket.Chat]

Zulip — Best for Organized Discussion

If your team’s complaint about Teams is “I can never find anything in chat,” Zulip’s topic-based threading model directly solves this. Every message belongs to a named topic within a channel, making conversations findable months later. For async teams or organizations where Teams channels are overwhelmed with noise, Zulip is transformative.

Strengths: Topic-based threading, all features free, excellent search, email digest notifications, popular with open-source organizations.

Weaknesses: Unfamiliar UX requires retraining, no built-in video calls, 5-service deployment, higher RAM requirements.

Best for: Async teams, research groups, and organizations where conversation findability matters more than video call quality.

[Read our full guide: How to Self-Host Zulip]

Mattermost + Nextcloud + Jitsi — Best Full Stack

No single self-hosted application replaces everything Teams does. For organizations that need chat, file storage, co-editing, and video conferencing, the best approach is a stack:

Teams FeatureSelf-Hosted Replacement
Chat/messagingMattermost
File storage/sharingNextcloud
Video conferencingJitsi Meet
Wiki/knowledge baseBookStack or Outline
CalendarNextcloud or Radicale

This stack requires more services to manage but gives you best-in-class tools for each function instead of Microsoft’s all-in-one compromise.

Quick Comparison

FeatureTeams (Business)MattermostRocket.ChatZulip
Cost (50 users/year)$3,600-13,200$0$0$0
Chat + threadsYesYesYesYes (topic-based)
Video callsBuilt-in (300 participants)Built-in (WebRTC)Built-in (Jitsi)External only
File storageSharePoint/OneDriveNo (use Nextcloud)Uploads onlyUploads only
Document co-editingOffice OnlineNo (use Nextcloud)NoNo
Wiki/knowledge baseBuilt-in (basic)No (use BookStack)NoNo
CalendarOutlook integrationNo (use Radicale)NoNo
Mobile appsNativeNativeNativeNative
Self-hosted RAMN/A4 GB2 GB2 GB + swap
Setup complexityN/ALowMediumHigh

Cost Comparison

Teams (Business Basic)Self-Hosted Stack
10 users/month$60$0 (existing server)
50 users/month$300$15-30 (VPS)
200 users/month$1,200$30-60 (dedicated)
10 users/year$720$0-180
50 users/year$3,600$180-360
200 users/year$14,400$360-720
3-year cost (50 users)$10,800$540-1,080

Teams Business Basic costs $6/user/month. Business Standard costs $12.50/user/month. Self-hosted costs assume a dedicated VPS for the chat server plus potentially a second VPS for Nextcloud and Jitsi.

What You Give Up

  • Office 365 integration — Co-editing Word, Excel, and PowerPoint directly in chat tabs. This is Teams’ strongest feature and has no direct self-hosted equivalent (Nextcloud’s Collabora/OnlyOffice integration is close but less seamless).
  • Enterprise video conferencing — Teams supports 300 participants with screen sharing, breakout rooms, recording, and transcription. Jitsi handles 75-100 participants well but does not match Teams at scale.
  • Calendar integration — Teams’ tight Outlook calendar integration (scheduling meetings, seeing availability) is unmatched. Self-hosted alternatives require separate calendar tools.
  • IT admin tools — Teams’ admin center, compliance features, DLP policies, and audit logs are enterprise-grade. Self-hosted alternatives have basic equivalents at best.
  • Single sign-on with Azure AD — While self-hosted tools support LDAP/SAML, the integration is not as seamless as Teams + Azure AD.
  • Managed infrastructure — Microsoft handles scaling, security patches, uptime, and backups. Self-hosting means you handle everything.

For organizations that are deep in the Microsoft ecosystem, replacing Teams is harder because you are really replacing Microsoft 365. For organizations that use Teams primarily for chat and light video calls, self-hosted alternatives are compelling.