Google Workspace vs Microsoft 365 for Small Businesses
Both platforms give a small business professional email, file storage, video calls and document editing. Both can be configured securely. The right choice depends on how your team works, not on which is objectively better.
The main difference
Google Workspace was built for the browser. Documents live online, collaboration is immediate and there is little to install. Microsoft 365 grew from desktop Office, and its desktop Word, Excel and PowerPoint apps remain the standard in many industries, alongside strong web and mobile versions.
| Google Workspace | Microsoft 365 | |
|---|---|---|
| Documents and spreadsheets | Browser-first, excellent real-time collaboration | Full desktop Office apps on most business plans, plus web versions |
| Best fit | Teams that collaborate constantly and work mostly online | Teams that exchange Office files with clients or rely on advanced Excel |
| Email and calendar | Gmail and Google Calendar | Outlook and Exchange |
| Meetings and chat | Google Meet and Google Chat | Microsoft Teams |
| Device management | Endpoint management in the admin console, more advanced on higher plans | Intune on Business Premium, with detailed Windows management |
| Built-in AI | Gemini in Gmail, Docs, Sheets and Meet on eligible plans | Microsoft 365 Copilot as an add-on or included on some plans |
Google Workspace and Microsoft 365 compared for small businesses
Documents and spreadsheets
- Google Workspace
- Browser-first, excellent real-time collaboration
- Microsoft 365
- Full desktop Office apps on most business plans, plus web versions
Best fit
- Google Workspace
- Teams that collaborate constantly and work mostly online
- Microsoft 365
- Teams that exchange Office files with clients or rely on advanced Excel
Email and calendar
- Google Workspace
- Gmail and Google Calendar
- Microsoft 365
- Outlook and Exchange
Meetings and chat
- Google Workspace
- Google Meet and Google Chat
- Microsoft 365
- Microsoft Teams
Device management
- Google Workspace
- Endpoint management in the admin console, more advanced on higher plans
- Microsoft 365
- Intune on Business Premium, with detailed Windows management
Built-in AI
- Google Workspace
- Gemini in Gmail, Docs, Sheets and Meet on eligible plans
- Microsoft 365
- Microsoft 365 Copilot as an add-on or included on some plans
Choose Microsoft 365 if
- Your clients, auditors or suppliers send and expect Word and Excel files with complex formatting.
- Finance staff rely on advanced Excel features, macros or add-ins.
- You run mainly Windows laptops and want detailed central control over them.
- Industry software you use integrates with Outlook or Teams.
Choose Google Workspace if
- Your team edits the same documents at the same time, often.
- Staff work across Chromebooks, Macs and personal devices, mostly in a browser.
- You want the simplest possible administration for a small team.
- Your other business tools already connect to Google accounts.
Security is about configuration
Neither platform is secure by default in every respect. On both you need multi-factor authentication for every user, separate admin accounts, email authentication with SPF, DKIM and DMARC, sensible sharing settings and a process for leavers. Both are cloud services that must be in scope for Cyber Essentials. Our Microsoft 365 setup checklist covers the equivalent settings in detail.
Switching later
Migration between the two is routine but not trivial. Email, calendars and files move well with the right tools. Shared drive structures, permissions and anything built on the old platform, such as forms or automations, need planning. It is worth choosing carefully now rather than migrating in two years.
Common questions
Which is cheaper for a small business?
Entry-level plans are similarly priced, and both vendors change pricing and bundles regularly. Compare the plan that includes the features you actually need, such as desktop apps, device management or built-in AI, rather than the headline price.
Can we use both?
You can, but running two platforms doubles administration and security work. Most small businesses are better served by choosing one.
