Microsoft 365 vs Google Workspace: Which Is Right for Your Small Business?

We get asked this question a lot. Both Microsoft 365 and Google Workspace are mature, capable platforms that will serve most small businesses well — the question is which one fits your specific situation better. There's no universally right answer, so here's a straightforward breakdown of both.

What You Get with Each

Microsoft 365 Business Basic (from ~£5/user/month)

• Exchange email with your own domain
• Teams (chat, video calls, meetings)
• SharePoint (intranet / file sharing)
• OneDrive (1TB cloud storage per user)
• Web versions of Word, Excel, PowerPoint, Outlook
• Desktop Office apps on Microsoft 365 Business Standard (£10.30/user/month)

Google Workspace Business Starter (from ~£5.20/user/month)

• Gmail with your own domain
• Google Meet (video calls)
• Google Chat
• Google Drive (30GB per user on Starter, pooled storage)
• Docs, Sheets, Slides, Forms — all browser-based
• Google Sites, Jamboard, Vault (depending on tier)

The Case for Microsoft 365

Office compatibility is the big one. If your clients, suppliers, or staff send you Word documents, Excel spreadsheets, or PowerPoint presentations, Microsoft 365 handles them natively. Google's import/export is decent but not perfect — formatting can drift, complex spreadsheets can break, and macros won't work.

Outlook is still the gold standard for business email. For users who manage high volumes of email with complex folder structures, rules, and calendar integration, Outlook is hard to beat. Gmail is simpler but for heavy users it can feel limiting.

Teams is deeply integrated into the Microsoft ecosystem. If your business already uses Azure, SharePoint, or any other Microsoft services, Teams slots in naturally. For businesses with more than 10–15 staff, the SharePoint/Teams combination for document management and internal communication is genuinely powerful.

Desktop apps matter for some users. Staff who work offline, do heavy spreadsheet work, or use advanced Word features really benefit from full desktop Office — particularly Excel power users. The web version is improving but it's not there yet.

The Case for Google Workspace

Real-time collaboration is where Google leads. Google Docs, Sheets, and Slides allow multiple people to edit the same document simultaneously with no version conflicts. Microsoft has added this to 365 but it's still not as seamless as Google's implementation.

It's simpler to set up and manage. Google's admin console is straightforward. Setting up a new user, configuring email routing, or managing devices through Google's MDM is generally quicker and easier than navigating Microsoft's admin portal, which is powerful but complex.

Gmail is excellent. For users who aren't heavy Outlook users, Gmail is fast, reliable, and familiar to most people. The search is outstanding and spam filtering is among the best in the industry.

Everything runs in the browser. No software to install, no updates to manage, works on any device. For teams using Chromebooks, MacBooks, or a mix of devices, this is a significant practical advantage.

Security and Admin: A Closer Look

Both platforms offer solid security at their respective tiers. For small businesses, the key features to look for are:

• Multi-factor authentication (MFA) — both support it, both should have it enforced
• Mobile device management — Microsoft's Intune is enterprise-grade but complex; Google's basic MDM is simpler and adequate for most small businesses
• Email security — both include spam filtering and phishing protection. Microsoft Defender for Office 365 (available on higher tiers) is excellent for higher-risk environments
• Compliance and data residency — both offer data residency options for EU-based businesses with GDPR considerations

Migration Considerations

If you're already on one platform, switching has a cost — not just financial but in staff time and disruption. Before switching:

• Email migration is straightforward on both sides
• File migration requires checking for formatting issues in documents
• Staff will need time to adjust — budget for a few weeks of reduced productivity
• Custom integrations (CRMs, accounting software) may need reconfiguring

Which Should You Choose?

Here's a simple decision framework:

• Choose Microsoft 365 if: your staff use desktop Office apps, you exchange a lot of documents with external clients, you have more than 15 staff and need robust device management, or you're already using other Microsoft services (Azure, Dynamics, etc.)
• Choose Google Workspace if: you want simplicity and easy setup, your team is small and collaborative, you work across mixed devices, or your staff already use Gmail and Google personally
• Either will work if: you're setting up a new business, you primarily communicate by email, and your document needs are straightforward

For what it's worth: most of the small businesses we support in County Durham are on Microsoft 365, largely because Office familiarity is so embedded. But we've set up and managed both, and Google Workspace is genuinely excellent for the right business.