Which Is Cheaper, Google Workspace or Office 365?

Choosing the right cloud-based productivity suite is a critical decision for businesses seeking to optimise workflows and manage costs effectively. In today’s highly digital workplace, Google Workspace and Microsoft Office 365 are two of the leading contenders, each offering a comprehensive set of tools tailored for communication, collaboration, and productivity. Among the many factors influencing this choice, cost remains a primary concern for organisations aiming to balance functionality with budget constraints. Evaluating which platform is more cost-effective involves examining subscription pricing, additional fees, storage allocations, and scalability for different business sizes.

Google Workspace is known for its straightforward pricing plans that cater well to small and medium-sized enterprises, often providing greater storage capacity at comparable or lower price points. Meanwhile, Microsoft Office 365 offers a range of plans with advanced features and broad application options, but its tiered pricing and additional add-on costs can raise the total expenditure. Beyond just the sticker price, understanding the nuances of monthly versus annual billing, user limits, and the potential need for premium add-ons is essential. This essay will delve into these aspects to offer a clear comparison, helping businesses determine which suite—Google Workspace or Office 365—delivers the best value for money in 2025. Such insight empowers decision-makers to invest wisely in digital tools that support growth without compromising financial efficiency.

Pricing Overview Of Google Workspace And Office 365

Google Workspace offers four primary plans targeted at business users: Business Starter, Business Standard, Business Plus, and Enterprise. The pricing starts at $7 per user per month for the Business Starter plan if paid annually, rising to $8.40 for monthly payments. The Business Standard plan is $14 per user per month annually ($16.80 monthly), and the Business Plus plan costs $22 annually ($26.40 monthly). Enterprise plans have custom pricing depending on business requirements. Google Workspace’s Business Starter plan is ideal for small teams or freelancers who require essential features such as a custom professional email domain, 30 GB of cloud storage, and basic AI tools integrated into Gmail. The Business Standard tower offers significant storage expansion with 2 TB per user, additional security features, and enhanced video conferencing capabilities supporting up to 150 participants.

The Business Plus plan provides further storage (5 TB per user), advanced security, and the ability to host video meetings with up to 500 participants. The Enterprise tier delivers unlimited storage, advanced compliance, security features such as device management policies, and support for in-domain live streaming, and is priced based on organisational needs, typically suited for large-scale institutions. Notably, all Google Workspace plans now include Google’s Gemini AI-powered tools integrated throughout core apps, a feature that was previously offered in a standalone add-on but is now part of the subscription cost, contributing to the recent price increases. Google Workspace offers a discount for annual commitments, typically reducing monthly costs by about 20% compared to flexible monthly billing. This fosters better affordability for businesses willing to commit to a year’s subscription.

Google Workspace pricing typically ranges from $6 to $18 per user per month for standard business plans, with enterprise pricing available on request. The main tiers include:

Business Starter: around $6-$7 per user/month
Business Standard: around $12-$14 per user/month
Business Plus: around $18-$22 per user/month
Enterprise: custom pricing

Microsoft 365 (Office 365) also offers a range of plans segmented broadly into Business and Enterprise categories. The business-oriented plans most comparable to Google Workspace’s offerings are Business Basic, Business Standard, and Business Premium, priced respectively at $6, $12.50, and $22 per user per month, with the Business Premium plan incorporating advanced security and device management. Enterprise plans such as Microsoft 365 E3 and E5 escalate in price, costing $33.75 and $54.75 per user per month, respectively, and offer unlimited cloud storage, enhanced compliance, analytics, and AI tools.

There are also specialised plans like Microsoft 365 F3 designed for frontline workers at $8 per user per month, which includes basic Office apps and Teams. A significant change for 2025 is the announced 5% price increase on annual subscriptions with monthly billing effective from April 1, 2025, which affects all purchasing models, including direct, Cloud Solution Provider (CSP), and Microsoft Customer Agreement for Enterprise (MCA-E) agreements. Microsoft also offers Personal and Family plans priced at $9.99 and $12.99 per month, respectively, which include Microsoft Copilot AI tools integrated into core Office applications, added from early 2025. While these plans cater primarily to individuals and families, they exemplify the inclusion of AI features in Microsoft 365’s ecosystem, similar to Google Workspace’s Gemini.

Microsoft 365 pricing ranges from $6 to $22 per user per month for business plans, with enterprise plans costing more. The main tiers include:

Business Basic: $6 per user/month
Business Standard: $12.50 per user/month
Business Premium: $22 per user/month
Enterprise plans with more features and licenses at a higher price

READ ALSO: How Much Does Google Office Cost?

Cost Comparison by Plan

Plan Level	Google Workspace Cost (per user/month)	Microsoft 365 Cost (per user/month)
Entry Level	$6 – $7	$6
Mid-Level	$12 – $14	$12.50
Top Business Plan	$18 – $22	$22

Both platforms have similar starting prices, but Microsoft 365 offers a slightly lower entry price and a longer free trial period (one month vs. 14 days for Google Workspace)

Additional Considerations and Recommendations for Which Is Cheaper, Google Workspace or Office 365?

While Google Workspace and Microsoft 365 offer comparable features, Google Workspace often proves to be more cost-effective, especially for smaller businesses and those prioritising cloud-based tools. However, the “cheaper” option depends on specific needs and features. Microsoft 365 excels in enterprise-level security and offline functionality, while Google Workspace offers a more streamlined, web-based experience. Here’s a more detailed breakdown:

Pricing:

Google Workspace:

Offers a tiered pricing model with plans starting at $6 per user per month for the Business Starter plan. Higher-tier plans provide more storage and features, but are priced accordingly. Google Workspace also has an enterprise plan with customised pricing.

Microsoft 365:

Similar tiered pricing, starting at $6 per user per month for the Business Basic plan. Microsoft 365 offers more robust features in its higher-tier plans, including desktop versions of the Office suite.

Key Differences:

Cloud Storage:

Google Workspace generally provides more storage per user in its Business Standard and plans (2TB and 5TB, respectively), while Microsoft 365 offers 1TB across all Business plans.

Software Suite:

Microsoft 365 includes the full desktop versions of Microsoft Office apps (Word, Excel, PowerPoint, etc.). Google Workspace primarily focuses on web-based applications.

Collaboration Features:

Microsoft 365’s Microsoft Teams is more robust for enterprise communication and collaboration, while Google Meet is simpler to use.

Security:

Microsoft 365 is often considered stronger on authentication and identity verification, especially for regulated industries.

Ease of Use:

Google Workspace is known for its simplicity and ease of use, particularly for users accustomed to Google’s ecosystem. Microsoft 365 can feel more complex, especially for users new to the suite.

Recommendation:

For smaller businesses or those prioritising cost:

Google Workspace may be the better choice, especially if the focus is on cloud-based tools and collaboration.

For larger organisations needing enterprise-level features, security, and integration with Microsoft products:

Microsoft 365 could be a better fit.

For businesses with diverse needs and workflows:

It’s possible to use both Google Workspace and Microsoft 365.

Neither Google Workspace nor Microsoft 365 is categorically cheaper across all tiers—the difference boils down to the specific plans, billing choices, storage needs, and the value attributed to AI integrations and native desktop applications. Google Workspace generally carries a modest premium on entry-level plans but offers generous storage and integrated AI tools, while Microsoft 365 provides competitive pricing with robust desktop apps and flexibility in licensing models, with a slight upcoming price increase.

Careful evaluation of feature sets combined with pricing plans and AI capabilities will enable businesses to choose the productivity suite that delivers the best return on investment while supporting collaborative workflows. As pricing and features continue to evolve in 2025, ongoing comparison and trial usage might be the best approach to determine which productivity suite is more affordable and functional for your organisation’s unique demands.

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