Microsoft 365 vs Google Workspace for small business

Microsoft 365 and Google Workspace now cost the same at each small business tier: $7, $14, and $22 per user per month on an annual commitment, as of September 2026. So price should not decide it. Choose Microsoft 365 if your work depends on desktop Excel, Word, or Outlook, or you need built-in device management. Choose Google Workspace if your staff work in a browser, edit together in real time, and want the simpler system to run. Both are good. Switching later is possible but not cheap.

How do the prices compare in September 2026?

US list prices per user per month, from the Microsoft 365 business pricing page and the Google Workspace pricing page, both checked in September 2026.

Tier	Microsoft 365	Google Workspace	Annual commitment	Monthly or flexible
Entry	Business Basic	Business Starter	$7.00 both	$8.40 both
Middle	Business Standard	Business Standard	$14.00 both	$16.80 both
Top	Business Premium	Business Plus	$22.00 both	$26.40 both

Notes on the table:

• Microsoft raised Basic and Standard on July 1, 2026 (Microsoft’s announcement), which is what brought the two price lists level.
• Google shows introductory discounts for new customers. Per its pricing footnote, the discount covers only the first 20 users and the standard price applies after the promotional period. Budget on the standard price.
• Both vendors cap these plans at 300 users. Above that, each has an Enterprise range.

What do you get at each tier?

	Microsoft 365	Google Workspace
Entry tier storage	1 TB OneDrive per user, plus a 100 GB mailbox	30 GB per user, pooled, shared across mail and files
Middle tier storage	Same as entry	2 TB per user, pooled
Top tier storage	Same, plus a 1.5 TB archive mailbox	5 TB per user, pooled
Installed desktop apps	Standard and Premium only	None. Docs, Sheets, and Slides run in the browser, with offline mode
Meeting size	Up to 300 people	100, 150, or 500 by tier
Meeting recording	Included	Standard and higher
AI included	Copilot Chat (web-grounded chat) on every plan	Gemini in Gmail on Starter, Gemini across Gmail, Docs, Meet, and more from Standard
AI add-on	Microsoft 365 Copilot Business, $21.00 per user per month	AI Expanded Access add-on
Top tier security extras	Intune device management, Defender for Business, Conditional Access, data loss prevention	Vault for retention and eDiscovery, advanced endpoint management, enhanced security controls

The storage line deserves a second look. Google’s entry tier is 30 GB per person for mail and files together, which a busy mailbox can fill. Microsoft’s entry tier gives each person 1 TB of file storage and a separate 100 GB mailbox. From the middle tier up, Google is the more generous of the two.

The AI line is the other real difference. Google includes Gemini inside its apps from the Standard tier. Microsoft includes a chat assistant on every plan but charges extra for Copilot inside Word, Excel, Outlook, and Teams. We cover that in Microsoft 365 Copilot for small business.

Where is Microsoft 365 stronger?

• Desktop Office apps. Excel with large workbooks, macros, Power Query, and pivot tables has no full equivalent in a browser. Long Word documents with tracked changes and styles are similar. If accountants, attorneys, lenders, or customers send you complex Office files and expect them back intact, native Office avoids conversion problems.
• Outlook. Shared mailboxes, delegate access to a manager’s calendar, rules, and categories are mature and familiar to many office workers.
• Device and identity security in one license. Business Premium includes Intune, Defender for Business, and Conditional Access. Our Business Premium vs Standard comparison lists exactly what that covers.
• Windows integration. Sign-in to Windows PCs with the same work account, OneDrive folder backup, and policy control all connect without extra products.
• Software compatibility. Many line-of-business programs integrate with Outlook, Excel, or Microsoft sign-in. Check what your industry software expects.

Where is Google Workspace stronger?

• Real-time collaboration. Docs, Sheets, and Slides were built for several people typing in one file at once, and it shows. Sharing is a link, not an attachment.
• Simplicity. There is one admin console with fewer moving parts. A small office with no IT background can understand most of it.
• Gmail. Fast search, strong spam filtering, and an interface most people already know from a personal account.
• Any device, nothing to install. Everything runs in a browser, so Macs, Chromebooks, and Windows PCs behave the same. This suits offices with mixed or personal devices.
• Storage and AI at the middle tier. Business Standard includes 2 TB per user and Gemini across the apps at $14.00.
• Shared drives. Files in a shared drive belong to the organization, not the person who uploaded them, which keeps files in place when someone leaves. Confirm that the tier you choose includes them.

What does each do less well?

Stated neutrally, because both matter when you live with the choice:

• Microsoft 365 has more admin centers, more settings, and more overlapping tools (OneDrive, SharePoint, and Teams all hold files). It rewards careful setup and can confuse without it. Our SharePoint guide explains how those three fit together.
• Google Workspace can open and edit Office files, but complex Excel models, macros, and heavily formatted Word documents do not always survive the round trip. Device management at the lower tiers is basic compared with Intune.

What does switching cost?

The license price is the small part. Plan for these:

1. Email migration. Mail, calendars, and contacts for every user. Microsoft documents an automated migration from Google Workspace in the Exchange admin center. Going the other direction, Google lists a data migration tool with its Standard plan and above.
2. File migration. Folder structure, sharing permissions, and links inside documents. Permissions rarely map one to one and need a review afterward.
3. Format conversion. Google Docs and Sheets become Word and Excel files, or the reverse. Formulas, scripts, and macros need testing.
4. Overlap. Expect to pay for both systems for at least a month while you move.
5. DNS cutover. Your domain’s mail records are repointed, and SPF, DKIM, and DMARC are rebuilt so mail does not land in spam. See why business email goes to spam.
6. Retraining. This is the largest cost and the easiest to underestimate. People lose speed for a few weeks.
7. Everything connected to email. Scanners that email PDFs, the website contact form, accounting software, calendar booking tools, and phone apps all need to be updated.

For an office that is working fine on either platform, switching only for preference is rarely worth it. Switch when there is a concrete reason: a software requirement, a security or compliance need, or a merger.

Which should you choose?

If this describes you	Lean toward
Finance, legal, real estate, or construction work built on Excel and Word	Microsoft 365
Customers and partners send complex Office files daily	Microsoft 365
Windows PCs that you want to manage and secure from one license	Microsoft 365 Business Premium
Industry software that requires Outlook or Microsoft sign-in	Microsoft 365
Mostly Macs, Chromebooks, or personal devices	Google Workspace
Staff co-write documents and live in a browser	Google Workspace
You want the simpler system to administer	Google Workspace
You want AI inside the apps without a per-user add-on	Google Workspace Business Standard
You already use one and it works	Stay, and spend the effort on security settings

When the choice does not matter much

For a five person office that needs email on its own domain, a shared calendar, and a place for files, either one does the job at the same price. In that case pick the one your staff already know. Familiarity is worth more than any feature on the comparison table.

What to set up either way

The platform matters less than how it is configured. On both, the essentials are the same:

• Multi-factor authentication for every account, with no exceptions for owners. See why multi-factor authentication matters.
• One named account per person. No shared logins.
• Sharing defaults that do not allow “anyone with the link.”
• A documented process for removing access when someone leaves.
• An independent backup. Neither vendor’s recycle bin is a backup. We explain the gap in does Microsoft 365 need a backup, and the same logic applies to Google.

Common questions

Is Google Workspace cheaper than Microsoft 365?

Not as of September 2026. After Microsoft’s July 2026 price change, both charge $7.00, $14.00, and $22.00 per user per month on annual commitment for their three small business tiers. Google offers introductory discounts to new customers, limited to the first 20 users for a promotional period.

Can we use both?

You can, and some offices run Google for email and buy Microsoft 365 Apps for desktop Office. It works, but you pay twice, manage two sets of accounts, and files end up in two places. For most small offices one platform is simpler and safer.

How long does a migration take?

It depends on mailbox sizes, file volume, and how many connected systems (scanners, website forms, accounting software) need updating. Most of the effort is preparation and cleanup, not the copy itself. The cutover, when mail records are repointed, is normally scheduled outside business hours so staff start the next workday on the new system.

Do both work well on a Mac?

Yes. Google Workspace runs entirely in the browser. Microsoft 365 has native Mac versions of Word, Excel, PowerPoint, Outlook, OneDrive, and Teams, though a few advanced Excel features are fuller on Windows. If someone relies on a specific Excel add-in or macro, test it on a Mac first.

Which is more secure?

Both are secure when configured well and risky when left at defaults. Microsoft’s Business Premium tier includes more device-level security in one license. Google’s model has fewer settings to get wrong. In both cases, multi-factor authentication and sensible sharing rules do most of the work.

How Coastal Growth Co. can help

We can set up and support either platform, so the recommendation follows how your office works. We can review how your office works, recommend a plan and tier, handle the migration including email records and connected devices, and configure security before anyone signs in. See our cloud and email services or contact us to describe your situation. Scope and price are agreed before any paid work.