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Understanding "Co-existence, Upgrade and Interoperability" in Microsoft Teams.

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Co-existence

It fundamentally means you run SFB and Teams clients side by side on your PCs/Devices. 
For example, on a user's laptop, a Microsoft Teams and SFB clients are installed, logged in and running - that's called a co-existence - as simple as that. 

Upgrade -- the most important concept to grasp.

"Upgrade" Doesn't Mean client software upgrade - since SFB and Teams clients are totally two different kinds - we just can't upgrade SFB client to become Teams client - they have to be installed separately and run side by side (if needed).

It's imperative that we don't confuse the term "upgrade" in this particular usage.

Upgrade, in this context, means you "upgrade/add more workloads/capabilities of SFB client into Teams client" progressively and gradually.

For example, upgrade/add meeting capability into Teams client using "Skype for Business with Teams collaboration and meeting" upgrade mode, so that you start setting up, managing and having meetings in Teams client instead while SFB and Teams clients are running side by side.

Some of the fundamental reasons Microsoft introduces and talks about "Upgrade Paths/Modes" is that Microsoft just cannot abruptly replace SFB with Teams due to but not limited to the following practical constraints that both Microsoft and users have:

  • Some features are not available in some regions, e.g Calling Plan (Microsoft's constraint)
  • Some users still need SFB for 3rd party integration, for example, auto attendant. (Microsoft and user's constraints)
  • Some organizations need time, adjustment, planning, training to transition from SFB to Teams client (user's constraint)

At the same time, Microsoft wants users to start using Microsoft Teams since it's going to be an ultimate collaboration client replacing SFB client. 

Therefore, Microsoft helps users adapt with client (of course Teams is more than just a client) change by introducing "Upgrade Modes" in transition period.

 

Interoperability

Interoperability comes into play only when a certain user(s) is using either Teams or SFB client only and he/she wants to have a communication with the other.

Standard users homing scenarios in Hybrid Mode:

  • Teams users homed on Online. 
  • SFB users homed on on-prem SFB.

By default, chat modality is interoperable between Teams and SFB clients without additional configuration - means a Teams and SFB client users can IM each other without additional configuration.

But VoIP calling between SFB (on-prem user using only SFB client) and Teams (online user using only Team client) clients require an "interoperability policy" assigned to on-prem SFB users (whose accounts are synced through AAD Connect to the Office365) through the SFB Online PowerShell using "grant-csteamsinteroppolicy" command. 

No interoperability required among users (cohort) if both SFB and Teams clients are running side by side on their PCs. (Assumed that ISLAND Upgrade Mode is assigned to them).