Google Workspace vs Microsoft 365: which is better for small business?
Since Microsoft's July 2026 price rise, both suites cost almost the same. The real differences are desktop apps, storage, AI and how your team likes to work.
Quick answer
Choose Google Workspace if your team works in the browser, collaborates live on documents and wants AI included in the price.
Choose Microsoft 365 if you rely on desktop Word and Excel, complex spreadsheets or a Windows-based IT setup.
Prices are now nearly identical, so a Google Workspace promo code (up to 14% off for 3 months) can make Google Workspace the cheaper start.
Price comparison
Microsoft raised its business prices on July 1, 2026. The plans now line up almost one to one. US prices per user per month with annual billing:
| Level | Google Workspace | Microsoft 365 |
|---|---|---|
| Entry | Business Starter: $7 | Business Basic: $7 |
| Most popular | Business Standard: $14 | Business Standard: $14 |
| Advanced security | Business Plus: $22 | Business Premium: $22 |
| Promo code | 10% to 14% off first 3 months | No public promo codes |
With list prices this close, the Google Workspace promo code discount and the included AI become the tie-breakers on cost.
Feature comparison
| Feature | Google Workspace (Standard) | Microsoft 365 (Standard) |
|---|---|---|
| Gmail with your domain | Outlook with your domain | |
| Storage | 2 TB per user, pooled | 1 TB OneDrive + 50 GB mailbox per user |
| Office apps | Docs, Sheets, Slides in the browser | Word, Excel, PowerPoint desktop and web |
| Real-time co-editing | Excellent | Good |
| Video meetings | Meet, up to 150 people | Teams, up to 300 people |
| AI assistant | Gemini included | Copilot Chat included; full Copilot is a paid add-on |
| Best on | Any browser, Chromebooks, Mac, phones | Windows PCs |
AI: Gemini vs Copilot
This is the biggest practical difference in 2026. Google includes Gemini in its Business plans: on Standard and Plus it works inside Docs, Sheets, Slides, Drive, Meet and Chat at no extra cost.
Microsoft includes Copilot Chat, but the full Microsoft 365 Copilot that works inside Word, Excel and Outlook with your company data is a separate paid add-on per user. For a team that wants AI in its daily documents, Google Workspace is usually the cheaper route.
Which one should you choose?
your team works from anywhere, edits documents together, uses Macs, Chromebooks or phones, and wants AI included.
you depend on desktop Excel and Word, advanced macros, large Teams meetings or Windows device management.
Run the Google Workspace 14-day free trial with real work for a week. Most small teams know within days.
Switching from Microsoft 365 to Google Workspace
- Start a Google Workspace trial and verify your domain.
- Use Google's data migration tool to copy email, calendars and contacts from Microsoft 365.
- Move OneDrive and SharePoint files into Google Drive and shared drives.
- Switch your MX records to Google when everything is copied, then cancel Microsoft 365.
Docs, Sheets and Slides open and edit Word, Excel and PowerPoint files, so you don't need to convert everything on day one. Need a hand? Ask us for free setup advice.
Start Google Workspace with a promo code
Click Get code to copy it, click Sign up now, then paste the code at checkout.
Want more options? See every Google Workspace promo code.
FAQ
Is Google Workspace cheaper than Microsoft 365?
List prices are now almost the same ($7, $14 and $22 per user). Google Workspace includes Gemini AI and offers promo codes for up to 14% off the first 3 months, so it's often cheaper to start.
Can Google Workspace open Word and Excel files?
Yes. Docs, Sheets and Slides open, edit and save Microsoft Office files.
Which has better AI, Gemini or Copilot?
Both are strong. The key difference is cost: Gemini is included in Google Workspace Business plans, while the full Microsoft 365 Copilot is a paid add-on.
Is there a Microsoft 365 promo code?
Microsoft doesn't offer public promo codes for its business plans. Google Workspace does, through partner promo codes.
How hard is it to switch from Microsoft 365?
For a small team, a few days. Google's migration tools copy email, calendars and contacts, and files can be moved to Drive.
Prices are US list prices as of October 2026 and may change. Microsoft 365 is a trademark of Microsoft. SMBSaver is not affiliated with Google.