Google Workspace vs Microsoft 365 for small business
Comparison

Google Workspace vs Microsoft 365 for small business

Google Workspace suits most small businesses; Microsoft 365 wins for heavy Office, Windows and desktop-app users. Here's how to pick.

A1 Digital A1 Digital · written & reviewed by the team 3 min read Updated 18 June 2026

Quick answer

Google Workspace and Microsoft 365 are both paid business email and productivity suites. Google Workspace is simpler and browser-first; Microsoft 365 is best if you rely on desktop Word, Excel and Outlook. Either is a major upgrade over running a business off a free Gmail address.

~£5/user/mo

starting price for both suites' entry business plans

30GB+

mailbox storage on the cheapest plan of either suite

99.9%

uptime guarantee both providers offer

People agonise over this choice far more than it deserves. Both cost about the same, both run your email on reliable, secure infrastructure, and honestly, most teams already know which one they want, they just haven’t admitted it. The decision comes down to how your team already likes to work, not a winner-takes-all verdict. Here’s how to read your own answer.

Google Workspace and Microsoft 365 are both paid business suites that give you professional email at your own domain plus document, calendar and storage tools. Google Workspace is the simpler, browser-first choice for most small businesses, while Microsoft 365 is better if your team relies on desktop Word, Excel and Outlook.

The short answer

  • Pick Google Workspace if you want the easiest setup, work mostly in a browser, and like Gmail and Google Docs.
  • Pick Microsoft 365 if your team already uses Outlook and Excel, runs Windows, or needs the full desktop Office apps.
  • Either is fine for the basics: custom-domain email, shared calendars, video calls, file storage, spam filtering.

Still emailing customers from a free @gmail.com or @hotmail.com? The bigger decision is simply to move to one of these. Here’s why you should stop using Gmail for business.

Side by side

Feature Google Workspace Microsoft 365
Email app Gmail Outlook
Documents Docs, Sheets, Slides Word, Excel, PowerPoint
Desktop apps Browser-first (offline available) Full installable apps on paid plans
Video calls Google Meet Microsoft Teams
Storage (entry plan) 30GB per user 1TB OneDrive per user
Best for Simple, web-based teams Office-heavy, Windows teams
Learning curve Low Moderate

Where each one shines

Google Workspace is built around the browser. Email, documents and shared drives all live online, which makes collaboration painless: two people can edit the same document at once and changes save automatically. Setup’s quick and the admin console is friendly for non-technical owners. It’s the natural choice if your business already lives in Gmail.

Microsoft 365 wins on depth. Excel is still the most powerful spreadsheet tool available, and many industries (accounting, construction, legal) run on Office file formats. Paid plans include the full desktop versions of Word, Excel, Outlook and PowerPoint, so staff who prefer working offline or on big files get the real apps, not just web versions. Teams is also deeply tied into many business workflows.

A quick test

Look at your last 20 work emails and documents. Mostly Gmail and Google Docs? Lean Workspace. Mostly Outlook calendars and Excel attachments? Lean Microsoft 365. Most people already know their answer before they finish looking.

What both get right (and why it matters)

Whichever you choose, you get the things a free inbox can’t give you:

  1. Email at your own domain, you@yourbusiness.co.uk looks credible and builds trust.
  2. Better deliverability, proper business email makes it far easier to pass authentication checks so your messages reach the inbox. (SPF, DKIM and DMARC explained.)
  3. A 99.9% uptime guarantee, your email’s on enterprise-grade infrastructure.
  4. Security and admin controls, two-step verification, the ability to reset or wipe a lost device, and to recover a leaving employee’s account.

Key takeaway

The choice between Google Workspace and Microsoft 365 matters less than the choice to use one at all. Both give you a professional domain email, real storage and proper security, a free inbox gives you none of that.

Switching and setup

The trickiest part of either suite is the initial setup: verifying your domain, updating DNS records (MX, SPF, DKIM), and migrating existing email without losing anything. Get a record wrong and email can stop arriving. This is exactly where a done-for-you provider earns its keep.

We set up branded email on Google Workspace or Microsoft 365 for clients on the Complete and Premier plans, including domain verification, authentication records, and inbox migration, so nothing breaks and emails land properly. See what each plan covers on the pricing page, or get in touch if you want us to handle the move.

Add email without touching your website

Already have a domain but no proper email? You can add either suite to your existing domain without changing your website. The two are separate, your site stays exactly where it is.

There’s no wrong answer here. Google Workspace is the friendlier, simpler suite for most small businesses; Microsoft 365 is the stronger pick for Office-heavy, Windows-based teams. Decide based on the tools your team already reaches for, then get set up with email at your own domain and stop running your business from a free inbox.

Frequently asked questions

Which is cheaper?

Both start at roughly the same price, around £5 to £6 per user per month for entry business plans. The real difference shows up at higher tiers and depends on whether you need desktop Office apps. For most small teams the price is close enough that features and familiarity matter more than the monthly fee.

Can I keep my own domain with either?

Yes. Both let you use email at your own domain, like you@yourbusiness.co.uk. You verify ownership of the domain and update a few DNS records during setup. This is the main reason to pay for either instead of using free Gmail or Outlook.com.

Do I have to install software?

No. Both work entirely in a web browser, so you can read email and edit documents from any computer. Microsoft 365 also includes installable desktop apps (Word, Excel, Outlook) on paid plans, which many prefer for heavy spreadsheet or document work. Google Workspace is browser-first but works offline once set up.

Which should a non-technical business choose?

If you mostly live in your inbox and want the simplest setup, Google Workspace is usually easier. If your team already knows Outlook and Excel or uses Windows-heavy workflows, Microsoft 365 feels more natural. Either is a major upgrade over running a business off a free Gmail address.

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A1 Digital

Written by the A1 Digital team

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