Google Workspace vs. Microsoft 365: which is right for your small business?
Both give you professional email at your own domain, cloud storage, video calls and office apps. As of October 2026 they even cost the same at each level. The real difference is how your team likes to work.
The short answer
- Choose Google Workspace if your team already lives in Gmail, works mostly in the browser, and shares documents and spreadsheets a lot.
- Choose Microsoft 365 if you rely on desktop Word, Excel and Outlook, or your clients and vendors send you Office files all day.
What it costs (October 2026)
Prices are per user, per month, on a one-year commitment, before tax. Paying month to month costs about 20% more on both.
| Level | Google Workspace | Microsoft 365 |
|---|---|---|
| Entry | Business Starter: $7 | Business Basic: $7 |
| Most popular | Business Standard: $14 | Business Standard: $14 |
| Advanced security | Business Plus: $22 | Business Premium: $22 |
Microsoft raised Business Basic from $6 to $7 and Business Standard from $12.50 to $14 on July 1, 2026, which is why the two now line up. Both cap their business plans at 300 users.
The differences that actually matter
Desktop apps
Microsoft's entry plan, Business Basic, only includes Word, Excel and PowerPoint in the browser and on phones. If you need the full desktop apps, you need Business Standard or higher. Google Workspace is designed around browser apps (Docs, Sheets and Slides) at every level.
Storage
Google's Business Starter includes 30 GB per user, shared across the team. That is enough for email and light file storage, but teams that keep lots of photos, videos or large files usually need Business Standard (2 TB per user).
If your team loves Gmail, Workspace will feel familiar. If you have used Outlook for years, Microsoft 365 will feel like home. Both handle shared inboxes like info@ and spam filtering well.
AI features
Both now include AI assistants. Google includes Gemini on every business plan, with limited features on Starter. Microsoft includes Copilot Chat, with the full Microsoft 365 Copilot sold as an add-on.
Our recommendation for most small businesses
For a small team that mostly emails, schedules and shares a few documents, either entry plan works. We usually point clients to Google Workspace Business Starter for simplicity, or to Microsoft 365 Business Standard when desktop Excel and Word matter. Whichever you choose, the setup matters as much as the plan: your email needs the right DNS records (SPF, DKIM and DMARC) so it does not land in spam, and every account should have two-step sign-in turned on.
Switching later is possible
Moving between Google and Microsoft is very doable. Email, contacts and calendars can all be migrated. Pick the one that fits how you work today.