Microsoft 365 or Google Workspace: which should a small business choose?

Most small companies that want an address like name@company.com end up choosing between two familiar options: Microsoft 365 or Google Workspace. Both bundle email on your own domain, office apps, cloud storage and video meetings. The real difference is philosophy: Google builds everything around the browser, while Microsoft centres on installed Word, Excel and PowerPoint that sync to the cloud. This guide pulls together the vendors' official documentation and public comparisons so you can decide for yourself. Plan prices change over time and by reseller, so check them on the product pages.

Plans aimed at small businesses

Both vendors cap their small-business lines at 300 users.

• Microsoft 365: the Business line is Business Basic, Business Standard and Business Premium. Microsoft's FAQ says an organisation can hold at most 300 licences across the whole Business family combined; beyond that you move to Enterprise plans.
• Google Workspace: Business Starter, Business Standard and Business Plus allow up to 300 users. Enterprise has no user cap and is sold through Google's sales team.

One common trap: Microsoft 365 Business Basic does not include installed desktop Word, Excel or PowerPoint — only the web and mobile versions. You need Business Standard or higher for desktop apps. The question comes up regularly on the Microsoft Q&A forum, where the usual advice is to pick Basic only if staff can work entirely in the browser.

Quick comparison by need

Figures come from the vendors' official pages at the time of writing; limits change, so re-check before you buy.

Email on your own domain

Gmail is simple, fast to search and familiar to anyone who has used a personal Gmail account. Outlook is stronger on rules, folders and automated mail handling; Computerworld's take is that Outlook suits heavy email users while Gmail wins on simplicity.

Storage is counted differently:

• Microsoft: the Exchange Online limits page (2026 revision) lists a 100 GB user mailbox for Business Basic, Standard and Premium, separate from OneDrive. Business Premium also gets an auto-expanding archive of up to 1.5 TB. Many older comparisons still say 50 GB, so trust the official page.
• Google: email, Drive and photos draw from one organisation-wide pool. On Business Starter each user adds only 30 GB to that pool, so a company that sends lots of large attachments can hit the ceiling sooner than expected.

Documents and collaboration

This is where the two differ most, and public comparisons largely agree:

Google Slides (Google Workspace) showing a slide with a pie chart

PowerPoint (Microsoft 365) with the Animations ribbon

• Google Docs, Sheets and Slides are built for many people editing at once; sharing is just a link. Computerworld describes collaboration in Workspace as built in rather than bolted on.
• Word, Excel and PowerPoint go much deeper: more templates, more chart types, complex formatting, tracked changes. If your accountant relies on Excel macros and complex pivots, or you exchange Word/Excel files with larger clients, Microsoft carries less risk of broken formatting.

Google Sheets can open Excel files, but migration guides consistently warn that complex documents usually need manual clean-up after conversion.

Meetings and internal chat

Teams puts chat, team channels, meetings and files (stored in SharePoint) in one place; per Microsoft's limits documentation, all three Business plans can host meetings of up to 300 people. Google Meet is lightweight and runs straight in the browser, but its participant cap rises with the plan and Starter cannot record. Computerworld rates Teams as more complete than Google Chat for organisation-wide communication; for a team of five to ten people the gap matters less.

Administration and security

Both offer two-step verification, central user management and spam/phishing filtering. The differences show up in the higher tiers:

• Microsoft 365 Business Premium adds Defender for Business, Defender for Office 365 Plan 1, Intune (device management) and Entra ID P1 (conditional access). Microsoft Learn positions it as the plan for organisations of up to 300 people who want productivity and security in one bundle.
• Google Workspace Business Plus includes Vault (retention and eDiscovery) and advanced endpoint management; Starter and Standard get the fundamental level only.

Several IT service providers argue Microsoft is the stronger fit when you need to manage Windows devices and meet strict compliance demands. That is their opinion; whether any plan satisfies your specific legal obligations needs to be checked separately.

Moving between the two

Switching the platform is easier than moving the content. Both vendors ship official tools:

• Google to Microsoft: Exchange Online migrates mail and rules, calendars and contacts in batches of users. Microsoft's documentation lists what does not carry over, such as auto-reply settings, shared calendars and room bookings; migrated mail rules arrive switched off.
• Microsoft to Google: the Data migration service in the Admin console moves mail from Exchange Online, supports delta runs for new mail and handles up to 250 users at a time; Google announced calendar migration as an open beta.

The heaviest part is usually files: converting Docs/Sheets to Office formats (or the reverse), moving shared folders and fixing formatting. One IT consultancy notes that support requests rise noticeably in the first month after a switch, and third-party apps connected to email need reconfiguring. Many comparisons give the same advice: if your current platform works, only switch when you hit a specific limitation the other one solves.

Which one should you pick?

Google Workspace fits when:

• Staff work mostly in the browser, already know Gmail and co-edit documents a lot.
• You are a new company with no legacy systems and want a fast setup with little admin.
• Your documents are simple and you rarely need advanced Excel.

Microsoft 365 fits when:

• Work depends on desktop Excel and Word, or you trade Office files with partners regularly.
• Company PCs are mostly Windows and you want central management (Business Premium).
• You want a large mailbox separate from file storage, or run larger internal meetings.

Both vendors offer trials. The safest approach is to have a few employees use one for a week or two on their real daily work before pointing your domain's MX records at the new platform. For current prices, see the Microsoft 365 Business and Google Workspace product pages on Dùng Gì.

Frequently asked questions

Does Microsoft 365 Business Basic include desktop Word and Excel?

No. Business Basic includes only the web and mobile versions of Word, Excel and PowerPoint; you need Business Standard or higher for the desktop apps.

How is email storage counted on each?

Microsoft 365: each user gets a 100 GB mailbox on the Business plans, separate from OneDrive. Google Workspace: email, Drive and photos share one organisation-wide pool; on Business Starter each user adds only 30 GB to it.

Should we switch from one to the other?

Many comparisons advise switching only when you hit a specific limitation the other platform solves. The heaviest part is usually files: converting Docs/Sheets to Office formats (or the reverse), moving shared folders and fixing formatting.