# Microsoft 365 or Google Workspace for an SME?

URL: https://casterconsulting.hu/en/microsoft-365-or-google-workspace/
Published: 2026-10-15
Updated: 2026-10-15
Author: Caster Consulting

> At similar prices both are good choices, so price doesn't decide; how your team works does. Lots of Excel macros, Word templates and Office files swapped with partners point to Microsoft 365; simple, shared work in the browser points to Google Workspace.

**Short answer: at similar prices both are good choices, so price doesn't decide; how your team works does.** If you run on Excel macros and Word templates and swap Office files with partners all the time, Microsoft 365 is the more natural home. If your team mostly works in the browser, together and simply, Google Workspace causes less friction. The difference really matters in three areas: AI, security and device management, and EU data residency.

We use Google Workspace for our own email, but we work with both at client companies. This article doesn't try to decide which is "better"; it helps you decide which fits your company.

## What they cost

The two providers' prices sit in a similar band. Exact local prices depend on your reseller and billing, so here are the official dollar and euro list prices.

**Microsoft 365 (from 1 July 2026, US list price, per user per month, with Teams):**

- Business Basic: $7 (previously $6);
- Business Standard: $14 (previously $12.50);
- Business Premium: $22.

With the price rise, Basic and Standard also got 50 GB more mailbox storage and enhanced Copilot Chat features. Existing customers keep their old price until renewal.

**Google Workspace (euro, excluding tax, annual plan, per user per month):**

- Business Starter: €6.80, 30 GB pooled storage per user;
- Business Standard: €13.60, 2 TB;
- Business Plus: €21.10, 5 TB, plus Vault (archiving and eDiscovery).

Both providers' business plans are capped at 300 users. Above that, enterprise plans come into play.

## AI: Copilot or Gemini?

This is the biggest difference in how the two bundles work.

**Google:** since January 2025, Gemini's AI features have been included in Workspace business and enterprise plans at no extra charge. The previous Gemini add-ons were discontinued.

**Microsoft:** Copilot Chat is free for Microsoft 365 customers, but the full Microsoft 365 Copilot built into the apps costs extra. Copilot Business, for organisations of up to 300 users, is $21 per user per month, or $18 on promotion from 1 July to 31 December 2026.

There is a third route too: a standalone AI assistant you can use alongside either suite. We primarily use Anthropic's Claude ourselves. Claude Team costs $20 per user per month billed annually and connects to Microsoft 365 through an official integration. It's a good fit when the main work is writing, analysis or processing long documents rather than help inside the office apps.

So if most of your team needs AI in email, documents and spreadsheets, Google's price already includes it; with Microsoft you budget for it per user. If only a few people need full Copilot, Microsoft lets you buy it just for them.

## A worked example for a 30-person company

Take a 30-person company where everyone uses email, documents and shared storage, and five people want AI built into their apps. At official list prices, per month:

- **Microsoft 365 Business Standard:** 30 × $14 = $420, plus five Copilot Business licences (5 × $21 = $105), $525 in total;
- **Microsoft 365 Business Premium:** 30 × $22 = $660, plus the same Copilot, $765 in total, but this already includes endpoint protection and device management;
- **Google Workspace Business Standard:** 30 × €13.60 = €408, with Gemini included for everyone.

The currencies differ and reseller prices vary, but the order of magnitude is clear: the difference isn't in the base prices, it's in what you have to buy on top. If Business Premium replaces separately bought antivirus and device management, Microsoft's total can even come out cheaper.

## Security and device management

Microsoft 365 Business Premium includes everything in Business Standard, plus Defender for Business endpoint protection, Defender for Office 365 Plan 1 email protection and device management. If you have no dedicated IT person and want office apps, email, antivirus and central laptop management in one bundle, Business Premium is a strong offer.

Google Workspace also offers security and device management features, more of them in the higher plans. For managing a Windows fleet centrally, though, Microsoft has a natural advantage.

Whichever you choose, the most important security step is the same: **turn on multi-factor authentication for every user.** It's available in every plan, and Microsoft's own research found it cuts the risk of account compromise by more than 99%.

## Daily use: Outlook or Gmail, Teams or Meet

Often more important than price is how people feel using it every day.

Microsoft's world is built on desktop apps: Outlook, Word, Excel, Teams. Their strength is depth and familiarity. Someone who has lived in Excel for years feels at home there. Teams brings chat, meetings and files into one place, though many find it crowded.

Google's world is built on the browser: Gmail, Docs, Sheets, Meet. Its strength is simplicity and co-editing. Several people can work on one document at the same time without version confusion. For complex spreadsheet work, though, Sheets doesn't match Excel.

A common compromise in mixed teams is Google Workspace for everyone plus desktop Excel licences for a few finance colleagues. That can work, but decide it deliberately and agree where each file lives.

## Storage and archiving

Storage usually comes up only when it runs out. In Google Workspace, storage adds up per user according to the plan and is shared by the company: 30 GB per user in Business Starter, 2 TB in Standard, 5 TB in Plus. If you work with lots of large files (drawings, video, photos), Starter gets tight quickly.

Archiving and retrieval for legal purposes (eDiscovery) is a separate question. Google's Vault comes with Business Plus. If you must keep email and documents searchable for years, for contractual or regulatory reasons, factor that into the plan choice, not afterwards.

## EU data residency

**Microsoft:** the EU Data Boundary was completed on 26 February 2025. Customer data, pseudonymised personal data and support data are stored and processed within the EU and EFTA for Microsoft 365, Dynamics, Power Platform and most Azure services, regardless of plan.

**Google:** choosing a data region (for example, keeping data at rest in Europe) is only available from Business Standard upwards, not in Starter. Settings for the processing region need Enterprise Plus or a paid add-on.

If your customers require EU data storage in their contracts, this difference can matter.

## Which one fits you?

**Microsoft 365 is the better choice if:**

- your team is heavily Excel-based (macros, complex models, Power Query);
- you exchange Word and Excel files with partners, using templates;
- you want to manage Windows machines centrally and get endpoint protection in one bundle;
- Teams is already part of daily work;
- you use specialist software that relies on Office integration.

**Google Workspace is the better choice if:**

- your team mostly works in the browser, often on the same document at once;
- you value simplicity and have no dedicated IT person;
- you want to give most of the team AI at no extra cost;
- your devices are mixed (Mac, Chromebook, Windows).

**What not to do:** don't keep both running in parallel "temporarily" for years. A mixed environment means double licences, double administration and scattered files.

## If you already use one

If your company has worked in one system for years and nothing really hurts, switching rarely pays off on price alone. The migration, the relearning and the file clean-up cost more work than a dollar or two per user per month saves. Switch when the current system is a real obstacle: an important feature is missing, the team dislikes it, or it doesn't meet your security or data residency requirements.

## Switching from one to the other

Both providers offer migration tools for email, calendars and files. For an SME, the technical move is usually a matter of days or a few weeks. The harder part is human: new habits, tidying up files, rethinking sharing. A switch is also a good moment to clean out old folders shared with everyone.

Time the move for a weekend or a quieter period, pilot it with a small group first, and give people quick help in the first week. Don't forget the email details either: the domain's DNS settings, the records that authenticate outgoing mail, shared mailboxes and automatic forwarding. Badly prepared, these cause days of email trouble.

## Questions to ask your reseller

Most SMEs buy through a reseller or partner rather than directly. A few questions save surprises later:

- **Monthly or annual commitment?** Annual plans are cheaper, but you can't reduce seats mid-term. If headcount fluctuates, ask how flexible the contract is.
- **What happens at renewal?** Price rises often apply from the next renewal, so check the date and the new price in writing.
- **Who is the administrator?** Make sure at least one administrator account belongs to your company, not only to the reseller, and that it's protected with multi-factor authentication.
- **What support is included?** Password resets, new starters, leavers, lost devices: who does what, and how fast?
- **How do we leave?** If you change reseller or provider, how are licences and data handed over?

The answers tell you as much about the partner as about the product.

## What to do now

1. **Look at how your team works:** how much complex Excel, how much co-editing, which devices.
2. **Work out the full price:** plan, AI (Copilot extra or Gemini included), security add-ons.
3. **Decide whether you need EU data residency** for contractual reasons.
4. **Turn on multi-factor authentication** for everyone, whichever you choose.
5. **If you switch, plan the migration** with a small test group, and clean up sharing.

If you'd like someone to assess which fits your company better and handle the setup or migration, have a look at our [modern workplace and cloud](/en/modern-workplace/) service.

## FAQ

### Which is cheaper, Microsoft 365 or Google Workspace?

The base plans are in a similar band: Microsoft 365 Business Basic is $7 per user per month from July 2026, Google Workspace Business Starter €6.80. The difference comes from AI and security add-ons: Google includes Gemini in the plan price, while full Copilot costs extra with Microsoft.

### Which one has AI?

Both. Google Workspace business plans have included Gemini since 2025. In Microsoft 365, Copilot Chat is free and the full Copilot built into the apps costs extra.

### Which one stores data in the EU?

Microsoft stores and processes customer data within the EU for all plans under the EU Data Boundary. With Google, choosing a data region is available from Business Standard upwards.

### How many users can the business plans have?

Up to 300 users with both providers. Above that, enterprise plans apply.

### Is it hard to switch from one to the other?

Not technically: migration tools exist in both directions, and for an SME moving email and files takes days or weeks. The harder part is changing habits and tidying up files.

## Sources

- [Microsoft – Microsoft 365 Pricing and Packaging Updates (2026)](https://www.microsoft.com/en-us/licensing/news/2026-m365-packaging-pricing-updates)
- [Google Workspace – Compare Flexible Pricing Plan Options](https://workspace.google.com/pricing)
- [Microsoft Learn – Microsoft 365 Business Premium frequently asked questions](https://learn.microsoft.com/en-us/microsoft-365/business-premium/microsoft-365-business-faqs?view=o365-worldwide)
- [Microsoft – Copilot Plans and Pricing for Business](https://www.microsoft.com/en-us/microsoft-365-copilot/pricing)
- [Google Workspace Updates – The best of Google AI, now included in Workspace Business and Enterprise plans](https://workspaceupdates.googleblog.com/2025/01/expanding-google-ai-to-more-of-google-workspace.html)
- [Microsoft – Microsoft completes landmark EU Data Boundary](https://blogs.microsoft.com/on-the-issues/2025/02/26/microsoft-completes-landmark-eu-data-boundary-offering-enhanced-data-residency-and-transparency/)
- [Google Workspace Admin Help – Compare data region features across editions](https://knowledge.workspace.google.com/admin/compliance/compare-data-region-features-across-google-workspace-editions)
- [Microsoft Research – How effective is multifactor authentication at deterring cyberattacks?](https://www.microsoft.com/en-us/research/publication/how-effective-is-multifactor-authentication-at-deterring-cyberattacks/)
- [Anthropic – Claude plans and pricing](https://claude.com/pricing)