By CompareBestAI Editorial Team
Quick Answer Choose Google Workspace if your team works in the browser and collaborates live in shared documents: it starts at $7 per user per month and includes Gemini AI in the price. Choose Microsoft 365 if your team relies on desktop Word, Excel and Outlook or Microsoft Teams: it also starts at $7, includes 1 TB of storage per user on every plan, but charges extra for Copilot unless you buy a Copilot bundle ($23.50 or $32). Both cap business plans at 300 users. For most small teams: Google Workspace Business Standard ($14) or Microsoft 365 Business Standard ($14)
Google Workspace and Microsoft 365 are the two dominant productivity suites for businesses. Both include business email, calendars, cloud storage, documents, spreadsheets, presentations, video meetings, chat and AI. The real differences are in how people work (browser-first vs desktop apps), how AI is priced, how much storage you get, and how deep security and device management go. This comparison covers each one, with prices in USD for US customers checked against Google's and Microsoft's pricing pages on October 3, 2026.
Google Workspace vs Microsoft 365 at a glance
| Google Workspace | Microsoft 365 | |
|---|---|---|
| Entry plan | Business Starter, $7/user/mo | Business Basic, $7/user/mo |
| Mid plan | Business Standard, $14/user/mo | Business Standard, $14/user/mo |
| Top business plan | Business Plus, $22/user/mo | Business Premium, $22/user/mo |
| Gmail | Outlook (100 GB mailbox) | |
| Documents | Docs, Sheets, Slides (browser-first) | Word, Excel, PowerPoint (desktop apps from Standard) |
| Meetings | Meet: 100 to 500 participants by plan | Teams: up to 300 participants |
| Storage | 30 GB to 5 TB per user by plan | 1 TB OneDrive per user on every plan |
| AI | Gemini included (Gemini in Docs and Meet from Business Standard) | Copilot is an add-on or a bundle |
| Max users (business plans) | 300 | 300 |
| Free trial | 14 days | 1 month |
Sources: Google Workspace pricing and Microsoft 365 business plans, checked October 3, 2026. Prices are for annual commitments.
Key Takeaways: Google Workspace vs Microsoft 365
- Same list prices. Both suites cost $7, $14 and $22 per user per month for their three business tiers on annual plans.
- AI is the biggest price difference. Gemini is included in Google Workspace; Microsoft 365 Copilot costs $21 per user per month extra, or comes in bundles at $23.50 and $32.
- Microsoft gives more storage. 1 TB per user on every Microsoft plan, against 30 GB on Google's entry plan.
- Google is better for live collaboration; Microsoft is better for desktop Office power users.
- Microsoft Business Premium leads on security for small businesses, with Defender, Intune and Purview included.
Pricing Compared
Google Workspace pricing
| Plan | Annual | Flexible | Storage | AI |
|---|---|---|---|---|
| Business Starter | $7 | $8.40 | 30 GB/user | Gemini app, Gemini in Gmail |
| Business Standard | $14 | $16.80 | 2 TB/user | Adds Gemini in Docs, Sheets, Slides, Drive, Meet, Chat |
| Business Plus | $22 | $26.40 | 5 TB/user | Same as Standard |
| Enterprise | Custom | Custom | 5 TB+/user | Same, plus enterprise controls |
Full details: Google Workspace pricing.
Microsoft 365 pricing
| Plan | Annual (per user/mo) | Desktop Office apps | Copilot |
|---|---|---|---|
| Business Basic | $7 | No (web and mobile only) | Add-on |
| Business Standard | $14 | Yes | Add-on |
| Business Standard with Copilot | $23.50 | Yes | Included |
| Business Premium | $22 | Yes, plus advanced security | Add-on |
| Business Premium with Copilot | $32 | Yes, plus advanced security | Included |
| Apps for business | $10 | Yes, but no Teams or business email | Add-on |
Microsoft raised Business Basic from $6 and Business Standard from $12.50 on July 1, 2026; Premium stayed at $22. The standalone Microsoft 365 Copilot add-on lists at $21 per user per month, with a promotional $18 through the end of 2026 for organizations with up to 300 users.
What a 10-person team pays per year| Scenario | Google Workspace | Microsoft 365 |
|---|---|---|
| Mid tier, no paid AI add-on | $1,680 (Business Standard, Gemini included) | $1,680 (Business Standard, no Copilot) |
| Mid tier with full AI in documents | $1,680 (Business Standard) | $2,820 (Business Standard with Copilot) |
| Top business tier | $2,640 (Business Plus) | $2,640 (Business Premium, no Copilot) |
CBAI calculation: annual price per user × 10 users × 12 months.
Price verdict: they cost the same without AI. If your team wants AI inside documents and meetings, Google Workspace is about 40% cheaper at the mid tier.
AI: Gemini vs Copilot
Google Workspace includes Gemini on every Business plan. Starter gets the Gemini app, Gemini in Gmail and basic NotebookLM; Business Standard and above add Gemini inside Docs, Sheets, Slides, Drive, Meet and Chat. Workspace also includes Google Vids for AI video and Workspace Studio for no-code AI agents. See Gemini and Google Vids.
Microsoft 365 offers Microsoft Copilot in Word, Excel, PowerPoint, Outlook and Teams, either as a $21 per user add-on or in the "with Copilot" bundles. Copilot's strength is its depth inside desktop Office apps, especially Excel and Outlook.
AI verdict: Google Workspace wins on value; Microsoft wins for teams that want AI deep inside desktop Office.
Email, Documents and Storage
Email: Gmail vs Outlook
Gmail is fast, search-focused and works mainly in the browser. Outlook is the standard in many corporate environments, with a 100 GB mailbox on every Microsoft business plan and strong desktop features. Teams used to Outlook can also use Google Workspace Sync for Microsoft Outlook, but the experience is best in each suite's own client.
Documents: Docs, Sheets and Slides vs Word, Excel and PowerPoint
Google's apps were built for many people to edit at once, and sharing is simple. Microsoft's desktop apps handle complex Excel models, macros, advanced formatting and large files better. Microsoft also supports real-time co-authoring in the browser and desktop apps, but it's most seamless in Google.
Storage
Microsoft 365 includes 1 TB of OneDrive storage per user on every plan. Google Workspace includes 30 GB per user on Starter, 2 TB on Standard and 5 TB on Plus. For storage-heavy teams on a budget, Microsoft Business Basic is the better deal.
Meetings and Chat: Google Meet vs Microsoft Teams
Google Meet runs in the browser with no download, supporting 100 participants on Starter, 150 on Standard, 500 on Plus and 1,000 on Enterprise, with recordings from Business Standard. Microsoft Teams combines chat, channels, meetings (up to 300 participants on business plans) and file collaboration in one app, and is the default in many larger organizations and with enterprise clients. Choose Teams if your clients and partners already use it.
Security and Administration
Both suites offer two-step verification, admin consoles and 99.9% uptime commitments.
- Google Workspace: fundamental endpoint management on Starter and Standard, advanced endpoint management and Google Vault on Business Plus, and data loss prevention, context-aware access and data regions on Enterprise.
- Microsoft 365: Business Premium includes Microsoft Defender threat protection, Intune device management and Purview data protection for up to 300 users at $22, which makes it one of the strongest security packages for small businesses.
Security verdict: Microsoft Business Premium offers more security per dollar for small businesses with managed Windows devices; Google is simpler to administer.
Integrations and Ecosystem
Google Workspace connects to thousands of apps through the Workspace Marketplace and to automation tools like Zapier; see Google Workspace integrations. Microsoft 365 connects through Microsoft AppSource, Teams apps and Power Automate, and integrates tightly with Windows and Azure. Choose the suite that matches the operating systems and business apps your team already uses.
Who Should Choose Google Workspace?
- Startups and small businesses that work in the browser and share documents constantly
- Remote and hybrid teams that co-edit and comment in real time
- Teams that want AI everywhere without paying for an add-on
- Schools and nonprofits, which get free and heavily discounted Google editions
Read our full Google Workspace review and Google Workspace features guide.
Who Should Choose Microsoft 365?- Finance, legal and engineering teams that depend on desktop Excel, Word and Outlook
- Organizations standardized on Windows that want Intune device management
- Companies whose clients use Teams
- Storage-heavy teams that need 1 TB per user on the cheapest plan
Switching Between Google Workspace and Microsoft 365
- Export data from the current suite: mail, calendars, contacts and files.
- Convert documents. Google Docs, Sheets and Slides export to Word, Excel and PowerPoint; scripts, add-ons and macros need rebuilding.
- Create mailboxes first, then change your domain's MX records so mail flows to the new suite.
- Run both in parallel for a few weeks, then cancel the old subscription at renewal.
Our guide to AI platforms that lock you in and how to avoid it covers how to keep future moves easier. If neither suite fits, see Google Workspace alternatives, including Zoho Workplace and Proton Workspace.
How We Compared Google Workspace and Microsoft 365
CompareBestAI compares software with the same framework, described in how we rank tools and our editorial guidelines. For this comparison we:
- Checked Google's Workspace pricing page and plan comparison for prices, storage, meeting limits and Gemini access
- Checked Microsoft's business plan comparison for prices, mailbox and storage limits, desktop apps, Copilot bundles and security inclusions
- Checked coverage of Microsoft's July 1, 2026 price change and Copilot add-on pricing
- Calculated team costs ourselves and labeled them as CBAI calculations
We did not run a new hands-on test for this comparison. Both vendors change plans often, so confirm on their pricing pages before buying.
Google Workspace vs Microsoft 365 FAQs
Is Google Workspace better than Microsoft 365?
Google Workspace is better for browser-based teams that collaborate in shared documents, and it includes Gemini AI in the price. Microsoft 365 is better for teams that rely on desktop Word, Excel and Outlook or Microsoft Teams, and it includes 1 TB of storage per user on every plan.
Which is cheaper, Google Workspace or Microsoft 365?
They cost the same without AI: $7, $14 and $22 per user per month on annual plans. With AI in documents and meetings, Google Workspace is cheaper, because Gemini is included while Microsoft 365 Copilot costs $21 per user extra or comes in bundles from $23.50.
Does Microsoft 365 include Copilot?
Not in the base plans. Microsoft 365 Business Basic, Standard and Premium include only limited Copilot Chat. Full Copilot in Word, Excel, PowerPoint, Outlook and Teams costs $21 per user per month extra, or comes bundled in Business Standard with Copilot ($23.50) and Business Premium with Copilot ($32).
Which has more storage?
Microsoft 365 includes 1 TB of OneDrive storage per user on every business plan, plus a 100 GB mailbox. Google Workspace includes 30 GB per user on Business Starter, 2 TB on Business Standard and 5 TB on Business Plus and Enterprise.
Can I use Microsoft Office files in Google Workspace?
Yes. Google Docs, Sheets and Slides can open and edit Word, Excel and PowerPoint files directly. Complex Excel models, macros and advanced Word layouts may not convert perfectly, so teams that depend on them usually prefer Microsoft 365.
Is it hard to switch from Google Workspace to Microsoft 365?
It's manageable for small teams. Export mail, calendars, contacts and files, convert Google documents to Office formats, set up new mailboxes, then update your domain's MX records. Scripts, add-ons and automations must be rebuilt. Running both suites in parallel for a few weeks reduces risk.
Final Verdict: Google Workspace vs Microsoft 365
For most small, browser-first teams, Google Workspace is the better value: the same list price as Microsoft 365, with Gemini AI included and the smoothest real-time collaboration. Microsoft 365 is the better choice for organizations built around desktop Office, Windows devices and Teams, and Business Premium offers the strongest security package for small businesses.
Best for collaboration and built-in AI: Google Workspace. Best for desktop Office and device security: Microsoft 365.
Start a 14-day Google Workspace trial → · See Microsoft 365 business plans →
Read next: browse the Productivity & Collaboration category or our AI productivity tools guide. For lighter add-ons, compare Notion AI and Miro AI.
