💼 Productivity Suite Cost Comparison

Microsoft 365 vs Google Workspace: Complete Cost Comparison & Decision Guide

Current license prices, packaging differences and total-cost decisions. Equal base prices do not guarantee equal capabilities.

$7 / $14 / $22
US annual base tiers per user/month

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.

Select the Edition Before Comparing the Bill

The two entry prices both read $7, but Microsoft Business Basic supplies web/mobile Office and 1 TB OneDrive per user; Workspace Starter contributes 30 GB/user to pooled storage. At $14, Microsoft Standard adds desktop Office while Google Standard contributes 2 TB/user pooled storage. Microsoft Premium and Google Plus both list $22, but their security and governance packages are not interchangeable. Both Business families support up to 300 users; obtain enterprise quotes for larger deployments.

For Microsoft, decide whether Teams belongs in the purchase. No-Teams annual Basic/Standard/Premium cost $5.40/$10.79/$18.79/user/month. For work-grounded AI in Office, compare the explicit paid-yearly Standard with Copilot bundle at $23.50 or Premium with Copilot at $32 rather than assuming the base tier includes it. Gemini access in Workspace varies by edition and application. Copilot Chat and an Office Copilot bundle are not the same entitlement.

Hypothetical Buying Scenarios

These examples are arithmetic, not observed migration stories. For 100 Standard users, either base suite costs $16,800/year; entry and higher-tier equivalents in the table cost $8,400 and $26,400. Do not infer identical capabilities from those equal prices.

A 150-user Standard purchase is 150 × $14 × 12 = $25,200/year on either platform. Moving from Microsoft Premium to Google Standard would change base licenses from $39,600 to $25,200, a $14,400 difference, but only makes sense if the lost device/security capabilities are not required or their replacement cost is included. This is not guaranteed net savings.

A 100-user Microsoft Standard with Copilot purchase is 100 × $23.50 × 12 = $28,200/year. Its $11,400 difference from base Standard pays for a different entitlement; it cannot be presented as a universal premium for the same product.

For 500 users, Microsoft 365 E3 with Teams at $39/user/month models $234,000/year before negotiated terms. Google Enterprise needs a quote. A 500-seat Business Premium or Workspace Plus model would ignore the Business purchase boundary and is not used.

Decision Matrix for Procurement

  • Desktop document compatibility: test complex Office files and macros; do not equate web-only and desktop rights.
  • Storage: measure files per person, mailbox/photo usage where relevant, team-owned content and retention before comparing per-user OneDrive against a Google pool.
  • Security: map identity, endpoint and retention controls to the actual edition rather than a blanket vendor ranking.
  • AI: compare work-data access, application coverage, usage limits and administrative controls.
  • Commercial terms: match commitment, payment cadence, renewal price, seat-change rules and cancellation rights.

Evaluate the current Microsoft price owner and the canonical suite buying guide for more detail. This landing page is a purchasing checklist, not a new pricing owner.

What a Switching Quote Must Include

Start with the existing invoice and required capabilities. Add data/mailbox migration, permission mapping, training, support, temporary overlap and replacement add-ons. Pilot representative workflows before retiring licenses. There is no universal saving percentage or fixed two-week migration schedule.

Use the total-cost worksheet, dated historical baselines and price-change calculator for the separate cost questions. Existing Microsoft contracts may keep previous pricing until renewal; their historical invoice is not replaced by today's list price.

Review Your Actual License Requirements

Use your invoices and renewal terms with the SaaS audit tool. Published list prices are not negotiated quotes.