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 tier | Microsoft 365 with Teams | Google Workspace | Annual licenses for 100 users, either listed tier |
|---|---|---|---|
| Entry | Business Basic: $7/user/month | Business Starter: $7/user/month | $8,400 |
| Standard | Business Standard: $14/user/month | Business Standard: $14/user/month | $16,800 |
| Higher business tier | Business Premium: $22/user/month | Business 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.
| Scenario | Calculation | What the number excludes |
|---|---|---|
| 100 users, either Standard base plan | 100 × $14 × 12 = $16,800/year | Migration, training, support, add-ons and taxes |
| 100 users with both Standard base subscriptions | 100 × ($14 + $14) × 12 = $33,600/year | Removing one subscription reduces license charges by $16,800 only if its capabilities and contract can be retired |
| 50 users, either Standard base plan | 50 × $14 × 12 = $8,400/year | There is no automatic base-license saving from switching |
| 500 Microsoft 365 E3 users, with Teams | 500 × $39 × 12 = $234,000/year | Enterprise 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
- Inventory subscriptions, license assignments and required controls.
- Confirm contract end dates, cancellation rights and the exact Teams/AI edition.
- Pilot representative files, mailboxes and sharing permissions.
- Estimate migration and training with accountable owners; avoid an assumed two-week deadline.
- 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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