Google Workspace vs Microsoft 365 for Small Business: How to Actually Choose

Most Google Workspace vs Microsoft 365 comparisons are giant feature grids. They all say the same thing: both do email, file storage, video calls, and documents. That’s true, but it doesn’t help you decide.

Google Workspace is Google’s business suite: Gmail, Drive, Docs, Sheets, and Meet, running under your own domain. Microsoft 365 is Microsoft’s version: Outlook, OneDrive, SharePoint, Teams, and the Office apps. This guide skips the spec sheet and covers the few differences that actually matter for a small business.

Key Takeaways

• As of October 2026, both platforms cost $7, $14, and $22 per user per month at their three small business tiers. As a result, price no longer decides it.
• How your team works, and what your other software expects, should drive the choice.
• Serious security controls live in the $22 tier on both sides, and neither platform backs up your data for you.

Isn’t Google Workspace Cheaper Than Microsoft 365?

Not anymore. For years, Google was the budget option. However, after Microsoft’s price change on July 1, 2026, the two lineups match dollar for dollar on annual billing:

These prices come from Google’s Workspace pricing page and Microsoft’s business plan comparison. They assume an annual plan. Google charges more if you pay month to month, and both companies run intro discounts that expire.

In other words, the decision comes down to three things a pricing page won’t show you. How does your team work? What does your other software expect? And what do you actually get at the tier you’ll buy?

How Does Your Team Actually Work?

Google Workspace was built for the browser. Docs, Sheets, and Drive live online, and several people can edit the same file at once. There’s nothing to install. As a result, teams that write together and work from a mix of devices tend to find Google simpler.

Microsoft 365, on the other hand, is built around the desktop Office apps: Word, Excel, Outlook, and PowerPoint. They also run in a browser, but the desktop versions are where Microsoft is strongest. For example, if your business lives in complex spreadsheets or Excel macros, Microsoft is usually the better fit. Similarly, heavily formatted Word documents shared with clients tend to behave better there.

One trap catches a lot of people here. In our experience, it’s the most common licensing mistake we see. Microsoft’s cheapest tier, Business Basic, does not include the desktop Office apps. It’s web and mobile versions only, as Microsoft’s Office apps service description shows. Businesses buy Basic because it looks like the obvious starter plan. Then, for instance, the bookkeeper finds out they can’t install Excel. If your team needs desktop Office, start at Business Standard.

Storage is the other practical difference. Specifically, Microsoft gives each user 1 TB of OneDrive storage plus a separate mailbox. In contrast, pooled storage is how Google does it: one shared allowance for the whole business. That works out to 30 GB per person on Starter and 2 TB per person on Standard. As a result, Google’s entry tier gets tight fast if your team stores large files. For more on organizing files either way, see our guide to the best way to store small business files.

What Do Your Other Software and Clients Expect?

This is the factor most owners don’t think about. In fact, it’s often the one that decides it.

Start with the software your business already depends on. For instance, some accounting and industry-specific apps are built to work with Outlook or Excel. Others assume Windows computers that sign in through Microsoft. However, many connect just as well to Google. Either way, check before you choose, not after.

Then think about who you swap files with. If clients, lenders, or partners send Excel workbooks and Word files with tracked changes, Microsoft will save you formatting headaches. On the other hand, if your clients mostly share Google Docs links, the reverse is true.

Finally, consider your industry. Businesses that handle health, financial, or legal information can meet their requirements on either platform. That said, it takes the right tier and the right setup. If a client, auditor, or insurance carrier will ask how your email and files are protected, make sure your plan can answer.

Which One Is More Secure for a Small Business?

Neither, by default. Both platforms are secure at the right tier, and both are weaker than most owners assume at the entry tier. So the comparison that matters is between the plans you’ll realistically pay for.

Here’s what a small business should look for, whichever platform it picks:

• Enforced multi-factor authentication (MFA). Both platforms support it at every tier, and Google lets admins enforce 2-Step Verification for everyone. That said, what matters is whether it’s required or left optional. Our guide to MFA covers why this is the first setting to check.
• Device management. This lets you require a passcode, encrypt a laptop, and wipe company data from a lost phone. Microsoft includes it with Intune in Business Premium. Google includes basic device management in every business tier, with advanced controls in Business Plus.
• Sign-in rules. These block sign-ins from unexpected countries or unmanaged devices. On Microsoft, this is called Conditional Access, and it comes with Business Premium. Google’s version, Context-Aware Access, isn’t in any Business plan. It requires an Enterprise plan.
• Endpoint protection. Business Premium adds Defender for Business, which protects the computers themselves, not just the inbox. Google, however, focuses on protecting Gmail and Drive and leaves computer protection to separate tools.
• Retention and search. This means keeping and searching email and files for legal or compliance reasons. Google includes Vault starting at Business Plus. Similarly, Microsoft’s top small business tier includes its own retention tools.

The pattern is the same on both sides: the $22 tier is where the serious security controls live. In contrast, a $7 plan with default settings doesn’t get much protection from either company. In particular, someone has to turn these features on and keep them configured. That’s the real question behind who should manage Microsoft 365 for your business, and it applies to Google too.

Neither One Backs Up Your Data for You

This surprises a lot of owners. Microsoft and Google keep their services running and protect against their own hardware failing. However, they don’t promise to bring back a file deleted three months ago. The same goes for a mailbox removed when someone left, or data encrypted by ransomware that synced to the cloud.

Both platforms have recycle bins and version history, but they have time limits. For example, Google Drive empties its trash after 30 days. Microsoft’s SharePoint and OneDrive recycle bins hold items for 93 days. In other words, neither is a backup. If your business can’t afford to lose its email and files, you need a separate backup either way. We go into detail in are your business backups actually backing anything up?

Already Picked One? When Switching Is Worth It

If you’re already on one platform, the bar for switching should be high. Moving means migrating every mailbox, file, calendar, and shared permission. In addition, it means updating your domain’s email settings and retraining staff. It’s very doable, but it’s a project, not an afternoon.

Switching makes sense when the platform is actively fighting how your business works. For example, your team is constantly converting files, or a key app only works with the other platform. Similarly, watch for half the office quietly using the other one on the side. It’s also worth a look if you’re on Microsoft through a reseller plan that limits what you control. We cover that in why GoDaddy 365 holds businesses back.

In our experience, most requests to switch are really about something else: spam, lost files, messy permissions, or people not knowing where things live. Those are setup problems. As a result, they follow you to the new platform. Configuring what you have is almost always the cheaper fix.

Google Workspace or Microsoft 365: Which Should You Pick?

If your team works mostly in the browser and shares documents, Google Workspace is likely the simpler fit. If your business runs on desktop Office, complex Excel, or software that expects Microsoft, Microsoft 365 is likely the better one. Still unsure? The software you already use and the files your clients send will usually settle it.

That said, either platform is only as good as its setup. If you’re choosing a platform, thinking about switching, or unsure your current one is set up right, a short conversation with Engel Tech is an easy way to find out where you stand.

Frequently Asked Questions

Is Google Workspace cheaper than Microsoft 365?

Not anymore. On annual plans, both cost $7, $14, and $22 per user per month at their three main small business tiers, as of October 2026. Google charges more if you pay month to month, and both run introductory discounts, so compare the price you’ll pay after the first year.

Which is better for a small business, Google Workspace or Microsoft 365?

Neither is better across the board. Google Workspace tends to fit browser-based teams that collaborate on shared documents. Microsoft 365 tends to fit businesses that rely on desktop Excel and Word, or on software built around Microsoft. The apps your business already uses usually decide it.

Does Microsoft 365 Business Basic include Word and Excel?

Only the web and mobile versions. Business Basic does not include the installable desktop Office apps. If your team needs desktop Word, Excel, and Outlook, you need Business Standard or Business Premium.

Can I use Gmail with Microsoft 365, or Outlook with Google Workspace?

You can open Google Workspace email in the Outlook app, and you can view Microsoft 365 email in other mail apps. But your mailboxes, files, and calendars still live on one platform. Running both platforms side by side usually means paying twice and keeping files in two places.

How hard is it to switch from Google Workspace to Microsoft 365, or the other way?

It’s a real project, but a common one. Email, files, calendars, and sharing permissions all have to be moved, your domain’s email records have to be updated, and staff need a little retraining. With planning, most small businesses can switch with little or no downtime.

Do I need a separate backup for Google Workspace or Microsoft 365?

Yes, if your business can’t afford to lose its email and files. Both platforms protect against their own outages, but recycle bins and version history have time limits and won’t cover every deletion, departed employee, or ransomware event. A separate backup covers what they don’t.