Google Workspace vs Microsoft 365: Which Is Right for Your Small Business?

This is one of the most common questions we hear from small businesses setting up their first real IT infrastructure: Google Workspace or Microsoft 365? Both are solid, both work — the right choice depends on how your team works, not which brand sounds better.

Here's an honest breakdown of each, including pricing as of 2026.

Google Workspace

$6–$18/user/month

Google Workspace (formerly G Suite) includes Gmail, Google Drive, Docs, Sheets, Slides, Meet, and Calendar. Everything is browser-based, which means no software to install and real-time collaboration that actually works.

What Google Workspace does well:

• Easier to use — most employees already know Gmail and Google Docs
• Real-time collaboration built in from the ground up (Docs, Sheets, Slides)
• Works entirely in the browser — no software to install or update
• Simpler admin console — easier to manage a small team
• Slightly cheaper at the entry tier ($6/user/month for Business Starter)

Where it falls short:

• Google Docs/Sheets aren't 100% compatible with complex Excel or Word files
• Offline access works but isn't as seamless as desktop apps
• Some industries have compliance concerns about Google's data handling

Microsoft 365

$6–$22/user/month

Microsoft 365 (formerly Office 365) includes Outlook, Word, Excel, PowerPoint, Teams, SharePoint, and OneDrive. The Business plans include full desktop app installs on up to 5 devices per user.

What Microsoft 365 does well:

• Full desktop versions of Word, Excel, PowerPoint, and Outlook
• Better for complex spreadsheets and documents (advanced Excel features)
• More familiar to employees who've used Office for years
• Strong compliance and regulatory controls (HIPAA, FERPA, etc.)
• Better integration with Windows-based infrastructure

Where it falls short:

• More complex to set up and manage
• More expensive at higher tiers ($12.50–$22/user/month for Business plans)
• Desktop apps require installation and regular updates
• SharePoint can be confusing for small teams

Who should use which?

Migration doesn't have to be painful

Whichever direction you choose, migrating email, files, and user accounts from your old setup is the hardest part. Migrating from Gmail to Outlook (or vice versa) involves more nuance than most guides let on — especially if you have years of email history, shared drives, or calendars to preserve. Getting it wrong means lost data or days of disruption. Getting it right means you're up and running in a day.