Microsoft 365 vs Google Workspace for Small Business (2026)

No affiliate links or sponsorship, and BravoTech isn’t affiliated with Microsoft or Google. Prices and plan limits come from Microsoft’s and Google’s official US pricing pages and help documentation, checked October 17, 2026. We didn’t run a hands-on trial for this comparison. Related: What is OneDrive?
Quick answer
In the Microsoft 365 vs Google Workspace decision, pick Microsoft 365 if your small business needs desktop Word, Excel, and Outlook or manages Windows PCs; pick Google Workspace if your team works mostly in the browser and wants simple real-time collaboration. Both start at $7 per user/month with annual billing, and both business lines cap at 300 users.
Key takeaways
- Entry price is a tie: Microsoft 365 Business Basic and Google Workspace Business Starter are both $7 per user/month on annual terms (US list prices, Oct 17, 2026).
- Mid tier differs a lot: Microsoft 365 Business Standard with Copilot is $23.50; Google Workspace Business Standard is $14.
- Storage works differently: Microsoft gives each user 1 TB of OneDrive plus a separate 100 GB mailbox; Google pools storage (30 GB, 2 TB, or 5 TB per user) across the whole organization, shared by Gmail, Drive, and Photos.
- Desktop apps: Microsoft 365 Business Standard and Premium include desktop Office apps on up to 5 PCs or Macs per user; Google Workspace is browser-first and opens Office files.
- Both cap business plans at 300 users, and both have official tools for migrating mail and files from the other.
In this guide
- Our verdict
- Microsoft 365 vs Google Workspace at a glance
- How we compared
- How much do they cost in 2026?
- Which gives you more storage?
- Apps: desktop Office vs browser-first
- Email, meetings, and phone
- AI: Copilot vs Gemini
- Security and admin
- Which should you choose?
- Switching between them
- FAQ
- Sources
Our verdict: it depends on how your team works
Verdict
Choose Microsoft 365 if people rely on desktop Excel, Word, or Outlook, you trade Office files with clients all day, or you want to manage and secure Windows PCs from one place (Business Premium). Its per-user storage is generous: 1 TB of OneDrive and a separate 100 GB mailbox on every business plan.
Choose Google Workspace if your team lives in the browser, collaborates on the same documents in real time, uses Chromebooks or mixed devices, or wants a lower mid-tier price. Business Standard ($14) includes 2 TB of pooled storage per user and meeting recording.
Editorial verdict from official plan pages and help docs, not a hands-on trial. Both companies offer free trials, so test with real files before you commit.
Microsoft 365 vs Google Workspace at a glance
This table compares the three main small-business tiers on each side, using US list prices with annual commitment from Microsoft and Google.
| Microsoft 365 for business | Google Workspace Business | |
|---|---|---|
| Entry plan | Business Basic: $7.00/user/mo (paid yearly) | Business Starter: $7/user/mo (annual commitment) |
| Mid plan | Business Standard with Copilot: $23.50 | Business Standard: $14 |
| Top SMB plan | Business Premium with Copilot: $32.00 | Business Plus: $22 |
| Versions without Teams | Basic $5.40 / Standard $20.30 / Premium $28.80 | No equivalent (Meet is included) |
| User limit | Up to 300 users | Up to 300 users (Enterprise has no cap) |
| Cloud file storage | 1 TB OneDrive per user | Pooled: 30 GB / 2 TB / 5 TB per user |
| Email storage | 100 GB mailbox per user (+50 GB or 1.5 TB archive) | Included in the pooled storage |
| Desktop apps | Standard and Premium: Word, Excel, PowerPoint, Outlook, OneNote on up to 5 PCs/Macs per user | No desktop office suite; web and mobile apps plus Drive for desktop |
| Video meetings | Microsoft Teams (in the versions with Teams) | Google Meet: 100 / 150 / 500 participants |
| Built-in AI | Copilot Chat on all three; Copilot in apps on Standard and Premium | Gemini in Gmail on Starter; Gemini in Docs, Meet, and more on Standard and Plus |
| Business phone add-on | Teams Phone from $10/user/mo | Google Voice from $10/user/mo |
How we compared Microsoft 365 and Google Workspace
How we compared
On October 17, 2026 (PKT) we read Microsoft’s US business plan comparison page and Exchange Online limits, Google’s US Workspace pricing page and Workspace Admin Help (editions and storage FAQ), and both companies’ official migration guides. We recorded list prices, user caps, storage, included apps, and AI features exactly as published. We didn’t run trials or benchmarks, and promotional prices can change at checkout.
How much do Microsoft 365 and Google Workspace cost in 2026?
Both suites start at $7 per user/month with annual billing, but Microsoft’s middle and top business plans cost more because they now include Copilot. Microsoft lists these US prices as “user/month, paid yearly” on an annual subscription that auto-renews (Microsoft 365 business plans):
- Microsoft 365 Business Basic: $7.00. Web and mobile Word, Excel, PowerPoint, and Outlook, business email, Teams, and 1 TB of OneDrive.
- Microsoft 365 Business Standard with Copilot: $23.50. Adds desktop apps and Copilot in Word, Excel, PowerPoint, Outlook, and Teams.
- Microsoft 365 Business Premium with Copilot: $32.00. Adds device management (Intune), Defender for Business, policy-based identity and access management, Purview data protection, and a Windows 11 Pro upgrade.
- No-Teams versions: Basic $5.40, Standard $20.30, Premium $28.80, for companies that use another meeting and chat tool.
Microsoft also offers monthly-commitment subscriptions you can cancel any time, plus annual commitments paid monthly or upfront. Its pricing page explains the options but highlights the annual price, so check the monthly price at checkout.
Google lists Workspace prices per user per month, billed monthly, with a toggle that saves 16% on a one-year commitment (Google Workspace pricing). With annual commitment:
- Business Starter: $7. 30 GB pooled storage per user, custom business email, Gemini in Gmail, and 100-participant Meet calls.
- Business Standard: $14. 2 TB pooled per user, meeting recording and noise cancellation, 150 participants, Gemini in Docs and Meet, appointment booking pages, eSignature, and the Google Workspace Migrate tool.
- Business Plus: $22. 5 TB pooled per user, eDiscovery, Vault retention, 500 participants, and advanced endpoint management.
- Enterprise: contact Google sales.
Promotions
Google showed a 10% introductory discount for 12 months on Starter and Standard, limited to new customers and the first 20 users; standard pricing applies after that. Microsoft showed a promotional price on its Copilot Business add-on through December 31, 2026. Promotions change often, so budget on the regular list price.
Which gives you more storage: Microsoft 365 or Google Workspace?
It depends on how many users you have and how evenly they use space. Microsoft 365 business plans give each user 1 TB of OneDrive cloud storage, and email lives in a separate mailbox: 100 GB primary plus a 50 GB archive on Basic and Standard, or a 1.5 TB archive on Premium (Microsoft plan comparison; see also Exchange Online limits).
Google Workspace uses pooled storage: each license adds 30 GB (Starter), 2 TB (Standard), or 5 TB (Plus) to one shared pool for the organization, and that pool covers Gmail, Drive, and Google Photos. Because it’s pooled, one heavy user can use more than their share, so Google recommends setting storage limits (Google Workspace storage FAQ).
| Plan level | Microsoft 365 (per user) | Google Workspace (added to pool per user) |
|---|---|---|
| Entry ($7) | 1 TB OneDrive + 100 GB mailbox | 30 GB for Gmail, Drive, and Photos combined |
| Mid | 1 TB OneDrive + 100 GB mailbox | 2 TB |
| Top SMB | 1 TB OneDrive + 100 GB mailbox + 1.5 TB archive | 5 TB |
At the $7 entry level, Microsoft’s storage is far larger (1 TB vs 30 GB per user). At the middle tier, Google’s 2 TB pooled allowance is bigger than Microsoft’s 1 TB per user, especially if a few people store large video or design files. For a plain-English look at how OneDrive syncs and backs up files, see our OneDrive explainer; for Drive versus another popular option, see Dropbox vs Google Drive.
Apps: desktop Office vs browser-first Google Docs
Microsoft 365 is the choice if you need the full desktop Office apps; Google Workspace is built to run in a browser. Microsoft 365 Business Standard and Premium include desktop Word, Excel, PowerPoint, Outlook, and OneNote (plus Access on PC) for up to 5 PCs or Macs, 5 tablets, and 5 phones per user. Business Basic is web and mobile only (Microsoft).
Google Workspace’s Docs, Sheets, and Slides run in the browser and mobile apps, with Drive for desktop for file sync. Google lists interoperability with Office files on every Business plan, so you can open and edit Word, Excel, and PowerPoint files, but there’s no desktop office suite (Google Workspace plan features). If your choice mostly comes down to the word processor, our Google Docs vs Microsoft Word comparison goes deeper.
Practical rule: complex Excel models, macros, mail merges in Word, and long Outlook-centric workflows favor Microsoft. Many people editing one document at the same time from any device favors Google.
Email, meetings, and business phone
Both suites include custom business email on your own domain: Exchange with Outlook on Microsoft, Gmail on Google. Microsoft includes Teams for chat, calling, and meetings in its standard business plans, and sells cheaper no-Teams versions. Google includes Meet, with participant limits of 100 (Starter), 150 (Standard), 500 (Plus), and 1,000 (Enterprise), and recording starting at Standard (Google).
For a real business phone number, both sell add-ons: Microsoft Teams Phone starts at $10 per user/month (phone system only; with a US Calling Plan it’s $17), and Google Voice starts at $10 per user/month for up to 10 users, with auto attendants and call queues at $20.
AI: Microsoft Copilot vs Google Gemini
Both suites now bundle AI, but at different tiers. Microsoft lists Copilot Chat on Business Basic, Standard, and Premium, and Copilot inside Word, Excel, PowerPoint, Outlook, and Teams on the “with Copilot” Standard and Premium plans, along with pre-built agents such as Researcher and Analyst. Copilot in Teams requires a Teams license (Microsoft).
Google includes Gemini in Gmail and the Gemini app on Business Starter, and adds Gemini in Docs, Sheets, Slides, Drive, Meet, and Chat on Business Standard and Plus (Google). Whether either assistant is worth it depends on your work; both companies offer trials, so test with your own documents.
Security and admin controls
For small businesses that need device management, Microsoft 365 Business Premium is the most complete option of the plans compared here. Microsoft lists Intune for endpoint management, Defender for Business device protection, Defender for Office 365 Plan 1, Purview data loss prevention and information protection, and policy-based identity and access management for up to 300 users (Microsoft).
Google Workspace Business Plus adds Vault for retaining, archiving, and searching data, eDiscovery, Secure LDAP, and advanced endpoint management; Enterprise editions add data loss prevention, context-aware access, and data regions (Google). Whatever you pick, turn on multi-factor sign-in for every account; our LastPass vs 1Password guide covers password managers for teams.
Which should you choose? Scenarios for small businesses
| Your situation | Lean toward | Why |
|---|---|---|
| Accounting, finance, or heavy Excel users | Microsoft 365 Business Standard | Desktop Excel and Word on up to 5 PCs or Macs per user |
| Team that works in the browser, Chromebooks, or mixed devices | Google Workspace Business Standard | Real-time co-editing, 2 TB pooled per user, $14 |
| Tightest budget, email plus basic apps | Either $7 plan | Microsoft Basic gives 1 TB per user; Google Starter gives 30 GB pooled |
| You manage company Windows laptops | Microsoft 365 Business Premium | Intune, Defender for Business, Windows 11 Pro upgrade |
| Legal hold and email archiving on a budget | Google Workspace Business Plus | Vault and eDiscovery at $22 |
| Already use Zoom or Slack for meetings and chat | Microsoft 365 no-Teams plans or Google Workspace | Avoid paying for a meetings app you won’t use |
| Growing past 300 users | Enterprise plans on either side | Both business lines cap at 300 users |
How hard is it to switch between Microsoft 365 and Google Workspace?
Both companies publish official migration tools, so switching is a planned project rather than a rebuild. The big items are email, calendars and contacts, files, and your domain’s DNS (MX records) for mail delivery.
Google Workspace to Microsoft 365
- Email, calendar, and contacts: Microsoft documents a Google Workspace migration in the Exchange admin center (automated or manual) or PowerShell, run in batches of users. Microsoft recommends turning off retention and archival policies first, notes a 35 MB default limit for the largest single message, and has a separate guide for mailboxes over 100 GB (Microsoft Learn: Google Workspace migration).
- Drive files: Microsoft’s Migration Manager moves Google Drive files, metadata, and permissions to OneDrive and SharePoint. A simplified Migration Manager Lite is enabled by default for tenants with fewer than 300 Microsoft 365 licenses (Microsoft Learn: Migration Manager for Google).
Microsoft 365 to Google Workspace
- Email and files: Google’s data import tool imports email from Microsoft Exchange Online or IMAP accounts and files from OneDrive business editions into users’ My Drive, set up from the Google Admin console (Google Workspace Help: data import tool).
- Larger moves: Google lists its Google Workspace Migrate tool as part of Business Standard (Google).
Migration checklist
Before you switch: inventory shared mailboxes and shared drives, decide whether to keep files in Office format or convert them, schedule the MX record change for a quiet period, and keep the old subscription active until users confirm their mail and files arrived.
FAQ
Is Google Workspace cheaper than Microsoft 365?
At the entry level they cost the same: $7 per user/month with annual billing. In the middle tier Google is cheaper: Business Standard is $14 versus $23.50 for Microsoft 365 Business Standard with Copilot (US list prices, October 17, 2026).
Can I use Word and Excel files in Google Workspace?
Yes. Google lists interoperability with Office files on every Business plan, so you can open, edit, and share Word, Excel, and PowerPoint files in Docs, Sheets, and Slides. Complex macros and advanced Excel features are where teams most often prefer Microsoft’s desktop apps.
Does Google Workspace include desktop apps?
Not a desktop office suite. Docs, Sheets, and Slides run in the browser and mobile apps, and Drive for desktop syncs files to your computer. Microsoft 365 Business Standard and Premium include desktop Office apps.
How many users can each plan have?
Microsoft 365 business plans are designed for up to 300 users, and Google Workspace Business Starter, Standard, and Plus can be bought for up to 300 users. Larger companies move to Enterprise plans.
Which has more storage, Microsoft 365 or Google Workspace?
At $7, Microsoft 365 Business Basic gives each user 1 TB of OneDrive plus a 100 GB mailbox, versus 30 GB pooled per user on Google’s Business Starter. At the middle tier, Google’s Business Standard adds 2 TB per user to a shared pool, versus 1 TB per user on Microsoft.
Can I switch from Google Workspace to Microsoft 365 later?
Yes. Microsoft documents migrating Gmail, calendars, and contacts through the Exchange admin center and moving Drive files with Migration Manager. Google offers a data import tool for the opposite direction.
Sources
Prices, limits, and features come from Microsoft’s and Google’s official pages, checked on October 17, 2026 (PKT). No hands-on trial.
Show all 10 sources
- Microsoft: Compare all Microsoft 365 business plans (US pricing)
- Microsoft Learn: Exchange Online limits
- Microsoft Learn: Perform a Google Workspace migration to Microsoft 365
- Microsoft Learn: Migrate Google Workspace to Microsoft 365 with Migration Manager
- Microsoft: Teams Phone plans and pricing
- Google Workspace: Compare pricing plans (US)
- Google Workspace Help: Compare Google Workspace editions
- Google Workspace Help: Storage FAQ for admins (pooled storage)
- Google Workspace Help: About the data import tool
- Google Workspace: Google Voice plans and pricing
Changelog
- October 17, 2026: First version. Compared Microsoft 365 Business Basic, Standard with Copilot, and Premium with Copilot against Google Workspace Business Starter, Standard, and Plus using official US pricing pages, Exchange Online limits, Google’s storage FAQ, and both migration guides. No hands-on testing.




