Google Workspace vs Microsoft 365 in 2026: which suits your business?

In 2026 the two suites cost the same at list price: Google Workspace Business Starter, Standard and Plus are $7, $14 and $22 per user a month on annual plans; Microsoft 365 Business Basic, Standard and Premium are $7, $14 and $22 since 1 July 2026. Choose on how your team works.

That parity is new. Microsoft raised several prices on 1 July 2026, and many comparison posts still show 2023 or 2024 prices for one or both suites. This guide uses the vendors' own pages, read on 24 Oct 2026, and says where a figure couldn't be checked. Elgrith sets up, migrates and supports both suites, so we don't have a horse in this race.

Prices compared (checked 24 Oct 2026)

Google Workspace

Google's Flexible vs Annual plans page (last updated 22 Oct 2026) lists these prices per user per month, excluding tax:

The Flexible plan lets you add and remove users month to month; the Annual plan commits you for a year in return for the lower price. Enterprise editions are sold through Google sales and resellers, without a public list price.

Microsoft 365

Microsoft's 2026 packaging and pricing update (announced 4 Dec 2025) set these US list prices from 1 July 2026, per user per month:

Microsoft says pricing "may vary by country and currency", that the changes apply globally with local market adjustments, and that existing customers stay on current pricing until renewal. The page doesn't state the billing term behind these figures, so confirm whether a quote is for annual or monthly billing. We haven't included Microsoft's GBP prices: we couldn't verify them from Microsoft's UK pages on the day we checked, and third-party figures conflict. Check Microsoft's UK site or your reseller before budgeting in pounds.

What the price parity means

At list price, a 20-person team on the middle tier pays the same on either suite: 20 × $14 = $280 a month on annual plans. The real differences are in what each tier includes, AI add-ons, and what it costs to move later.

Worked example: a 25-person team for a year (illustrative)

This example uses only the US list prices above, excluding tax, discounts and reseller margins. It's an illustration of how the line items add up, not a quote.

Two things stand out. The flexible Google plan costs 20% more than the annual one, so only choose it if headcount really swings. And AI add-ons can more than double a Microsoft 365 budget, so decide how many people actually need Copilot rather than licensing everyone on day one.

Buying in the UK

Google publishes GBP list prices (see the table above). For Microsoft, prices in pounds can differ from a straight currency conversion because of Microsoft's local market adjustments, and many UK businesses buy through a Cloud Solution Provider whose price includes its own support. Ask for a quote that states the billing term, whether VAT is included and what the reseller's support covers.

AI included: Gemini vs Copilot

The two vendors went opposite ways on AI pricing.

Google announced on 15 Jan 2025 that Gemini is included in Workspace Business and Enterprise plans, with new pricing from 16 Jan 2025, and stopped selling the separate Gemini add-ons. Depth still varies by plan. Google's Business editions comparison (updated 22 Oct 2026) shows Business Starter with "Standard access" to Gemini features and models, a 32,000-token context window and 5 Deep Research reports a month; Business Standard and Plus get "Pro access", a 1 million-token context window and 20 Deep Research reports a day.

Microsoft includes Copilot Chat "at no additional cost with eligible Microsoft 365 plans", per its Copilot pricing page (read 24 Oct 2026). Copilot inside the apps with full work context is a paid add-on:

Microsoft also bills some advanced experiences by usage through Copilot Credits, with admin spending controls. If AI matters to your decision, price Copilot in: a Business Standard user with Copilot Business costs $14 + $21 = $35 a month at yearly list prices, against $14 for Google Workspace Business Standard with Gemini included.

That doesn't settle it. Copilot's strength is working across Outlook, Word, Excel and Teams data your company already has; Gemini's is being built into every Workspace plan. Test both on your real documents before deciding.

Email, files and storage

Google's storage is pooled across the organisation, so heavy and light users balance out. Microsoft separates mailbox storage from OneDrive storage. For document-heavy teams, both are generous; the bigger question is where your shared files should live. If your company runs an intranet or document library, see our SharePoint consulting services and our SharePoint vs OneDrive guide.

Desktop apps and offline work

This is often the deciding factor.

• Microsoft 365 Business Standard and Premium include the desktop Office apps (Word, Excel, PowerPoint, Outlook) for Windows and Mac. Business Basic is web and mobile only.
• Google Workspace is browser-first. Docs, Sheets and Slides work offline in Chrome once you turn offline access on, and they open and save Microsoft Office files. There are no installable desktop versions of Docs or Sheets.

If your finance team lives in complex Excel models with macros, Power Query or add-ins, Microsoft 365 is the safer choice. If your team mostly writes, shares and edits together in real time, Google Workspace's collaboration is hard to beat.

Microsoft also notes that Microsoft 365 Apps on Windows 10 will keep receiving security updates until 10 Oct 2028, which gives older PCs some breathing room, not a long-term plan.

Teams vs Meet, and Microsoft 365 without Teams

Google Meet is included in every Workspace plan; Google's comparison lists up to 100 participants on Starter, 150 on Standard and 500 on Plus, with recording on Standard and Plus. Microsoft Teams combines chat, channels, meetings and calling, and is deeply tied into SharePoint and Office files.

On 12 Sep 2025 the European Commission made Microsoft's Teams commitments legally binding, closing its competition case over bundling. Microsoft now lists no-Teams versions of its suites in its pricing update, as shown in the table above. A no-Teams plan makes sense if you already pay for Zoom or Slack; otherwise the bundled plan is usually simpler.

Security and admin

Both suites offer multi-factor authentication, device management, data-loss prevention and audit logs, with more controls on higher tiers (Business Premium on Microsoft; Business Plus and Enterprise on Google). Two points apply to both:

• Shared responsibility. The vendor runs the service; you're responsible for accounts, permissions, sharing settings and data. Turn on MFA for everyone and review external sharing.
• Backups. Retention and recycle bins aren't the same as a backup you control. Decide whether you need a third-party backup for mail and files, especially for regulated data.

Our IT services team handles ongoing administration, security baselines and user changes on either suite.

Switching: what a migration involves

The cheapest suite is usually the one you're already on, because switching has real costs:

• Mail, calendars and contacts. Microsoft's automated Google Workspace migration in the Exchange admin center (updated 28 Jul 2026) moves mail, calendar, contacts and rules into Exchange Online. Going the other way, Google provides its own migration tools.

• Files and permissions. Drive to OneDrive or SharePoint (or back) needs a folder and permission map; shared links break.

• DNS and cut-over. MX records, SPF, DKIM and DMARC change on a planned date, with a short window where mail can arrive in both places.

• Training and habits. People need help with a new mail client, file sharing and meeting tool. Budget time for it.

• Licences. Overlap both suites for the migration period, then cancel cleanly.

• Integrations. Single sign-on, CRM mail sync, scanners, shared calendars and apps built on the old suite (Apps Script on Google, Power Automate on Microsoft) all need checking and often rebuilding.

A planned migration with a pilot group first avoids most of the pain. Move a small group of willing users, fix what they find, then move everyone else in batches with a clear cut-over date and a rollback plan. Our Microsoft 365 migration services cover moves from Google Workspace, Exchange and other tenants; for the general method, see our data migration checklist.

Which to choose: a decision table

How Elgrith can help

Elgrith has delivered 1,000+ projects for 250+ clients since 2015, from our New Delhi HQ and client-partnership centres in New York, London and Shanghai. We help you choose a suite, then plan and run the move: our Microsoft 365 migration team handles mailboxes, files and tenant-to-tenant moves, and our IT services team keeps things running afterwards. Your tenant, admin roles and licences stay in your name. You get a fixed written quote after a free call. Book a call or start a project.

Prices are vendor list prices read on 24 Oct 2026, excluding tax. They change; confirm with the vendor or your reseller before you buy.