Google Workspace vs Microsoft 365: True Cost Comparison

Both are collaboration platforms, but the true cost includes hidden expenses. Compare all-in costs, migration effort, and feature gaps to make the right choice.

$7 / $14 / $22
Annual base tiers per user/month
100 users
Illustrative cost model
2026-09-30
Pricing checked

Current License Prices and Billing Basis

Checked September 30, 2026. Sources: Microsoft July 2026 commercial price list, Microsoft business plans and Google Workspace pricing. US USD list prices before tax; no introductory discounts. Annual commitment is not a cancellable monthly plan. Existing Microsoft contracts may retain previous prices until renewal.

Purchase tierMicrosoft 365 with TeamsGoogle WorkspaceAnnual licenses for 100 users, either listed tier
EntryBusiness Basic: $7/user/monthBusiness Starter: $7/user/month$8,400
StandardBusiness Standard: $14/user/monthBusiness Standard: $14/user/month$16,800
Higher business tierBusiness Premium: $22/user/monthBusiness Plus: $22/user/month$26,400

Matching prices do not mean matching functionality. Microsoft Basic uses web/mobile Office apps; Standard adds desktop apps; Premium adds security and device management. Google tiers use a browser-first suite with different storage and governance entitlements. Microsoft Business plans support up to 300 users; Google Business editions likewise support up to 300 users. Larger organizations need an enterprise purchasing review, not a blanket Business-plan downgrade.

Teams, Copilot and Storage Are Separate Decisions

The table uses Microsoft plans with Teams. Annual no-Teams Basic, Standard and Premium list at $5.40, $10.79 and $18.79/user/month respectively. Do not count Teams as included at these lower prices.

Microsoft Business Standard with Copilot is $23.50/user/month paid yearly, and Business Premium with Copilot is $32. These are explicit bundles, not the prices of the base Standard and Premium plans. Copilot Chat access is not the same entitlement as work-grounded Copilot in Office apps. Google includes Gemini capabilities by edition; compare the specific applications, access limits and controls rather than assuming identical AI bundles.

Microsoft business OneDrive provides 1 TB per user. Google Starter, Standard and Plus contribute 30 GB, 2 TB and 5 TB per user respectively to pooled storage. Individual allocations and a shared pool are not interchangeable. Neither column in this business-tier table means unlimited storage.

Use the Microsoft 365 pricing owner and full suite comparison for the corresponding plan detail.

Illustrative Cost Models, Not Customer Case Studies

These are hypothetical license-only calculations. They are not measured customer savings, guaranteed migration outcomes or evidence of a fixed payback period.

ScenarioCalculationWhat the number excludes
100 users, either Standard base plan100 × $14 × 12 = $16,800/yearMigration, training, support, add-ons and taxes
100 users with both Standard base subscriptions100 × ($14 + $14) × 12 = $33,600/yearRemoving one subscription reduces license charges by $16,800 only if its capabilities and contract can be retired
50 users, either Standard base plan50 × $14 × 12 = $8,400/yearThere is no automatic base-license saving from switching
500 Microsoft 365 E3 users, with Teams500 × $39 × 12 = $234,000/yearEnterprise controls and negotiated terms; Business plans are not a 500-seat equivalent

Choose Around the Work, Not a Universal Savings Claim

Prefer Microsoft when desktop Office compatibility, existing identity/device administration and Teams workflows are requirements. Prefer Google when browser collaboration and Workspace-native administration suit the team. Test real spreadsheets, external sharing, retention, email migration and accessibility before deciding. A second storage or meeting tool may be justified by a distinct workflow; it is not automatically waste.

Build total cost from contracted licenses, required security/AI add-ons, migration labor, support and temporary overlap. Include implementation risk and the cost of missing capabilities. No universal percentage or migration timeline applies.

Migration and Renewal Checklist

  1. Inventory subscriptions, license assignments and required controls.
  2. Confirm contract end dates, cancellation rights and the exact Teams/AI edition.
  3. Pilot representative files, mailboxes and sharing permissions.
  4. Estimate migration and training with accountable owners; avoid an assumed two-week deadline.
  5. Retire duplicate licenses only after functionality and retention checks pass.

Review your invoices alongside the SaaS audit tool, price history and price-change calculator. Historical values in those resources are dated baselines, not current offers.

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