Google Workspace vs Microsoft 365: Which Fits Your Small Business?

Short answer: as of October 10, 2026, Google Workspace and Microsoft 365 cost the same at every tier: $7, $14 and $22 per user per month on an annual commitment for Microsoft 365 Business Basic, Standard and Premium and for Google Workspace Business Starter, Standard and Plus, and both charge exactly 20% more month to month. Choose Microsoft 365 if your team works in desktop Word, Excel and Outlook or needs endpoint detection and response with its device management, which only Business Premium includes; choose Google Workspace if your team works in the browser and values more storage per user. Since price no longer decides it, compare what each tier includes, whether you can mix tiers and which applications your team actually uses.

Comparing Microsoft's own plans to each other instead? That decision is covered separately in Business Premium vs Business Standard. This article is Microsoft vs Google.

Google Workspace vs Microsoft 365 for small business: which should you pick?

Pick Microsoft 365 if your team works in desktop Word, Excel and Outlook, shares files with clients who use them, or wants Windows laptops managed through Intune on Business Premium. Pick Google Workspace if everyone works in a browser and co-edits documents. At October 2026 list prices the tiers cost the same, so decide on how your team works.

Google Workspace vs Microsoft 365 pricing (October 2026)

Microsoft raised its business list prices on July 1, 2026 (Business Basic from $6 to $7, Business Standard from $12.50 to $14, Business Premium unchanged at $22). Google's current prices date from its 2025 change, when Gemini features were folded into the Business editions. Both vendors publish US list prices per user per month. The numbers below come from the vendors' own price lists and are dated; check them again on the day you buy.

Tier	Microsoft 365 (paid yearly)	Microsoft 365 (monthly subscription)	Google Workspace (annual plan)	Google Workspace (flexible, month to month)
Entry	Business Basic: $7.00	$8.40	Business Starter: $7	$8.40
Middle	Business Standard: $14.00	$16.80	Business Standard: $14	$16.80
Top business tier	Business Premium: $22.00	$26.40	Business Plus: $22	$26.40
User limit	300 per tenant on all Business plans	300	300 on all Business editions	300

Two notes on billing. Google's flexible plan is exactly 20% above the annual rate at every tier, and lets you add and remove users month by month with no commitment. Microsoft's monthly subscription is also exactly 20% above its paid-yearly price as of October 10, 2026, which puts the two vendors level on month-to-month billing as well. Both vendors quote prices in USD for the United States; other regions have their own price lists.

What you get at each price

Same sticker, different contents. This is where the comparison is won or lost, so it is worth reading the tiers side by side rather than plan name by plan name.

Included at this tier	Microsoft 365 Business	Google Workspace Business
$7 tier	Basic: business email, Teams, web and mobile Office apps, 1 TB OneDrive per user. No installed desktop Office. Mailbox storage grew by 50 GB with the July 2026 change.	Starter: Gmail, Meet for up to 100 participants, Docs, Sheets, Slides, 30 GB pooled storage per user, fundamental endpoint management. No meeting recordings.
$14 tier	Standard: everything in Basic plus the installed desktop apps (Word, Excel, PowerPoint, Outlook) on up to five PCs or Macs per user.	Standard: 2 TB pooled storage per user, Meet for 150 with recordings saved to Drive, appointment booking pages, eSignature, ransomware detection for Drive files, Gemini in Gmail, Docs and Meet.
$22 tier	Premium: everything in Standard plus the security stack: Defender for Business (endpoint detection and response), Defender for Office 365, Intune Plan 1 device management, Entra ID P1 with Conditional Access, Purview data loss prevention.	Plus: 5 TB pooled storage per user, Meet for 500, Google Vault for retention and eDiscovery, advanced endpoint management including Windows device management, the same Gemini features as Standard.
Mixing tiers	Yes. Assign Basic, Standard and Premium user by user in one tenant.	Bought directly from Google, one Business edition applies to everyone in the organization. Some resellers can arrange mixed editions; confirm before you plan on it.

Read the $22 row twice. Microsoft's top business tier is a security bundle: managed devices, endpoint detection and response, Conditional Access and data loss prevention. Google's top business tier is a storage, meetings and records-retention upgrade that also adds advanced endpoint management, including Windows device management; Starter and Standard have only fundamental endpoint management, and no Business edition includes an endpoint detection and response product. A business that needs EDR on Google Workspace buys it from someone else, which is the cost that never appears on the pricing page.

Worked cost examples

All figures are annual-commitment list prices, per year, for the whole team. They are what the subscription costs; migration, training and administration come on top, whichever way you go.

A 10-person accounting firm that needs desktop Excel and managed laptops

Microsoft 365 Business Premium: 10 users at $22 is $220 a month, or $2,640 a year. That price includes the desktop apps, device management and endpoint detection the firm's cyber insurance application asks about. Google Workspace Business Plus: 10 users at $22 is the same $2,640 a year, but the firm still needs installed Excel for its clients' workbooks and a separate endpoint detection and response product. Same subscription cost, and Microsoft is the cheaper finished setup.

An 8-person design studio on Macs with no regulated data

Google Workspace Business Standard: 8 users at $14 is $112 a month, or $1,344 a year, with 2 TB of pooled storage per user, meeting recordings and the collaboration model the studio already works in. Microsoft 365 Business Standard is also $1,344 a year and includes desktop Office plus 1 TB of OneDrive per user. Sticker tie. If the studio exchanges files with clients who live in Word and PowerPoint, Microsoft's installed apps avoid the conversion questions; if its work is browser-native, Google's storage allowance is the better value at the same price.

A 25-person company with three kinds of user

Six warehouse and front-desk staff only need email and Teams. Fourteen office staff need desktop Office. Five people handle money, client data or travel and need managed devices. On Microsoft 365 the tiers mix: 6 at $7 ($42), 14 at $14 ($196) and 5 at $22 ($110) is $348 a month, or $4,176 a year. Bought directly from Google, the whole company sits on one edition: 25 on Business Standard is $350 a month, or $4,200 a year, and the five higher-risk users still need device management and endpoint protection from a third party. If the company wants Vault for retention, everyone moves to Business Plus: 25 at $22 is $550 a month, or $6,600 a year. The mixing rule, not the list price, is what moves this number.

A 30-person business with seasonal staff

Twenty core employees work all year and ten seasonal staff work five months. On Google's flexible plan the seasonal accounts cost 10 at $16.80 for five months, $840, against $1,680 for ten annual Business Standard licenses that sit idle for seven months. The core twenty stay on the annual plan at $14. Microsoft supports the same pattern with a monthly subscription for the seasonal seats at its monthly price and an annual commitment for the core team. Either way, buy the flexible seats only for the people who leave.

Which is better for a small business?

Choose the setup that passes your actual work and administration requirements. A Microsoft 365 plan with desktop applications suits teams that rely on particular Excel features, Office add-ins or document workflows, and Business Premium suits any business that has to answer a security questionnaire. Google Workspace suits teams whose work fits its browser applications and collaboration model, and its Standard tier gives more storage per user for the same money. Both support collaboration and offer security controls, with capabilities varying by plan. Test representative files and access requirements rather than assuming one suite is always more secure, easier to administer or better for a company of your size.

Which is more secure: Microsoft 365 or Google Workspace?

Define the controls your business needs before comparing plans: multifactor authentication, device management, email protection, data retention, access controls and independent recovery. Both suites provide MFA and email protection at every tier. Endpoint detection and response and Conditional Access are inside Microsoft 365 Business Premium; no Google Workspace Business edition includes an EDR product or Context-Aware Access, Google's equivalent of Conditional Access, although Business Plus adds Windows and advanced mobile device management. Retention and eDiscovery are inside Google Business Plus (Vault) and inside Microsoft 365 through Purview, with the depth depending on plan. Evaluate the configuration you would actually operate, including who administers it and how exceptions are reviewed.

Which apps will your team use?

Test the files and tasks that matter to the people using them. Google supports editing Office files, but conversion and certain features need separate consideration; complex formulas, macros, add-ins, formatting and external connections deserve an explicit trial. Google notes that Excel macros must be recreated using Apps Script when moving that workflow to Sheets. Microsoft 365 also offers browser collaboration, while desktop application entitlement depends on the plan. Compare Excel and Sheets, Word and Docs, and Outlook and Gmail using the same representative tasks, including client file exchange, calendar delegation and mobile work.

Microsoft 365 vs Google Workspace by business type

• Law firms, accounting firms and financial services. Test the documents exchanged with clients and counterparties, then map the firm's documented security and retention needs to the proposed plan and configuration. At current prices, Business Premium's included device management usually settles it.
• Agencies, design studios and startups. Test shared editing, client file exchange and the applications used on your actual Mac or Windows devices. Compare required security and recovery controls against each proposed plan; do not assume they are included or excluded because of the vendor name.
• Healthcare and dental practices. Start with the practice-management applications, document workflows and requirements identified by the practice. Confirm the relevant vendor agreements, plan features and configuration with the people responsible for that program.
• Construction and field service. Both work from a phone. The decision usually follows the office manager's spreadsheets and the estimating software's file formats.
• Nonprofits. Both vendors run nonprofit programs with their own pricing. The choice comes down to the same app and security questions as everyone else.

Can you switch later or run both?

You can switch or operate both, but define the scope before committing. Migration tools support particular data types and source-to-destination paths; permissions, sharing links, document conversion and application sign-ins may need separate work. Coexistence can serve a transition or a continuing business requirement, with explicit ownership for identities, mail routing, sharing, licenses and support. Our Microsoft 365 management service covers an agreed Microsoft administration scope, while our managed IT services can coordinate the broader support responsibilities. For an email-focused move, review our email migration scope.

How does a migration between the two work?

1. Inventory and scope. List users, mailboxes, aliases, shared addresses, calendars, files, permissions and applications tied to current accounts. Record data owners, retention needs and anything explicitly excluded.
2. Identity and licenses. Confirm destination accounts, supported licenses, domain control, MFA and application sign-in requirements. Agree how users and administrators will regain access if a step fails.
3. Pilot and acceptance. Test representative data and workflows with the chosen migration method. Identify unsupported items, conversion changes and manual remediation before setting the wider schedule.
4. Mail and file transition. Agree the migration batches, mail-routing changes, sharing and permission mapping, user communication and support coverage. Validate delivery, calendar behavior and file access against the acceptance list.
5. Devices and applications. Reconfigure supported clients and reconnect agreed applications. Scope device enrollment separately where required; changing email providers does not automatically require every device to be reset.
6. Recovery and closure. Confirm backup and retention arrangements, unresolved exceptions and the owner's acceptance before disabling source accounts or subscriptions. Keep the agreed recovery route available for the defined period.

Our cloud migration FAQ covers the questions owners ask most before a move.

Frequently asked questions

Is Microsoft 365 or Google Workspace cheaper?

On list price, neither. As of October 2026 both list $7, $14 and $22 per user per month for their entry, middle and top business tiers on an annual commitment, and both charge 20% more month to month. The differences are in what each tier includes (Microsoft's $22 tier is a security bundle, Google's is storage, meetings and Vault) and in Microsoft letting you mix tiers user by user. Include migration, training and administration before calling either one cheaper.

Which is better, Google Workspace or Microsoft 365?

Neither wins everywhere. Microsoft 365 is better for teams that depend on desktop Excel, Word and Outlook, exchange Office files with clients, or need endpoint detection and response and Conditional Access, which Business Premium bundles. Google Workspace is better for teams that work in the browser and want more pooled storage per user at the same price. For a Windows office with regulated data we usually recommend Microsoft 365; for a browser-first studio with no device requirements, Google Workspace is a sound choice.

Which is better for business, Google or Microsoft?

For business productivity the real comparison is Google Workspace against Microsoft 365's business plans, and the answer follows the work: desktop Office files and Windows device security point to Microsoft, browser collaboration and storage point to Google. Pick the suite your critical applications and clients already expect, then run the three-task trial described above before you commit.

Is Google One the same as Google Workspace?

No. Google One is a storage subscription that adds space to a Google Account across Drive, Gmail and Photos and can be shared with family. Google Workspace is the business product: email at your own domain, an admin console and the Business editions compared here. On the Microsoft side, compare the business plans above rather than Microsoft's consumer plans.

Is Google Workspace the same as Microsoft 365?

No. They are different productivity suites with overlapping email, calendar, meeting, storage and document capabilities. Microsoft 365 business plans differ in whether desktop applications are included; both vendors also provide browser-based work. Compare the exact applications, security controls, storage and administration features in the proposed plans rather than treating either brand as one fixed package.

Can I keep my existing email address if I switch?

Usually, if you control a business domain that the destination service supports. Keeping that address requires domain verification and the correct mail-routing changes. Inventory aliases, shared addresses, forwarding and application senders, then test delivery before and after the switch. Existing mail, calendars and contacts must be scoped separately against the chosen migration method; continuity and a complete copy of every data type should not be assumed.

Can I use Outlook with Google Workspace?

Google provides Google Workspace Sync for Microsoft Outlook for supported configurations, and other connection methods have their own capabilities. Google documents differences in Outlook features, calendars, contacts and delegation. Verify the particular Outlook version, operating system and connection method your staff use, then test the workflows they need. Do not assume that every Outlook experience matches an Exchange-backed mailbox.

Does Microsoft 365 work offline better than Google Workspace?

A Microsoft 365 plan that includes installed Office applications can support substantial local work, subject to application and licensing requirements. Google Docs, Sheets and Slides also support offline work when the supported browser, account and files are prepared for it. Test the actual travel or outage scenario: opening the right files, editing, handling attachments and resolving changes after reconnection. The subscription name alone does not establish offline readiness.

What about AI features like Copilot and Gemini?

Both vendors now bundle an assistant into the business tiers: Microsoft added Copilot Chat enhancements with its July 2026 change, and Google folded Gemini into the Business editions in 2025. The full Microsoft 365 Copilot that works across your email and files is a separate paid add-on. Choose one useful AI task and test it with representative, non-sensitive material in the proposed business account, and confirm the current feature entitlement, data handling and admin controls for that plan. Our Copilot evaluation guide offers further questions to consider.

Which is better for a 10-person company?

Headcount alone does not decide. List the applications those ten people use, how they exchange files, where they work and who will administer the platform. At ten users the two suites cost the same on any tier, so run the three-task trial described above and compare the complete proposed setups, including whatever device management and endpoint protection the Google setup would need from elsewhere.

Sources and dates

Prices checked October 10, 2026 against the vendors' published US price lists. Product entitlements and supported configurations can change; confirm them in the proposal and current vendor guidance.

• Microsoft licensing announcement of the July 1, 2026 price change (published February 16, 2026: Business Basic $7.00, Business Standard $14.00, Business Premium $22.00) and the Microsoft 365 business plans and pricing page
• Google Workspace Business editions (annual plan $7, $14 and $22; flexible plan $8.40, $16.80 and $26.40; pooled storage; 300-user limit) and the Google Workspace pricing page
• Google: compare Business editions (Vault in Business Plus) and Google: switching editions (one edition for everyone in the organization)
• Google: work with Microsoft Office files and Excel macros and Google Sheets
• Google: differences when using Workspace Sync with Outlook
• Google: prepare Docs, Sheets and Slides for offline work

By Latoya Reed for The NetSys Group, which has delivered managed IT, cybersecurity and cloud services since 1998. Our engineers hold degrees in electrical and computer engineering and are certified Microsoft and Cisco instructors, serving businesses across NY, NJ, CT, PA and Southwest Florida.