Most growing businesses choose their productivity suite once, make a few assumptions about cost, and move on. But when renewal comes around, or headcount jumps, the question resurfaces: is Microsoft 365 vs Google Workspace cost actually working in our favour?
The headline licence prices are closer than many people expect. At comparable tiers, the two platforms are within pennies of each other per user per month. The real cost difference lives elsewhere: in what each plan actually includes, how those inclusions stack up against your add-on spend, and what migration would genuinely cost if you decided to switch.
This guide breaks down Microsoft 365 vs Google Workspace cost at each tier, models the numbers for a 50-user business, and flags the hidden costs that rarely appear in the side-by-side comparison tables you find on vendor websites.
What Does Microsoft 365 vs Google Workspace Cost in the UK?
When businesses compare Microsoft 365 vs Google Workspace cost, they are looking at two SaaS productivity suites that cover broadly the same ground: email, calendar, video meetings, cloud document storage, and collaboration tools. Microsoft delivers this through Outlook, Teams, SharePoint, and OneDrive. Google delivers it through Gmail, Meet, Drive, and Docs.
At equivalent tiers on annual commitment (excluding VAT), the 2026 UK pricing sits like this:
- Entry tier: M365 Business Basic £5.75/user/month vs Google Workspace Business Starter £5.90/user/month
- Mid tier: M365 Business Standard £11.55/user/month vs Google Workspace Business Standard £11.80/user/month
- Upper tier: M365 Business Premium £18.10/user/month vs Google Workspace Business Plus £18.40/user/month
Across every tier, Microsoft 365 comes out marginally cheaper on the base licence fee. But price is not the only variable in a genuine Microsoft 365 vs Google Workspace cost comparison.
Why Licence Price Alone Does Not Tell the Whole Story?
The mid-tier comparison is where most businesses sit. Microsoft 365 Business Standard and Google Workspace Business Standard are both pitched at knowledge workers who need a full productivity suite. At £11.55 vs £11.80 per user per month, the licence gap for a team of 50 is roughly £150 per year, barely a rounding error on an IT budget.
What matters far more is what each platform bundles in at that price, what you will need to pay for separately, and, if you are considering a switch, what the transition will actually cost in time, disruption, and migration work. That is the honest Microsoft 365 vs Google Workspace cost picture, and the one this guide works through in full.
Is Microsoft 365 or Google Workspace the Right Fit for Your Growing Business?
Transputec works with UK businesses to assess their current productivity licence spend, model the true cost of each platform, and manage migrations without disruption. Talk to us before your next renewal.
Get a Strategic ConsultationWhat Each Platform Includes at the Mid Tier?
For most growing UK businesses, the mid-tier plans are the right comparison point. Microsoft 365 Business Standard and Google Workspace Business Standard are both designed for teams that need a full, professional productivity suite.
Microsoft 365 Business Standard (£11.55/user/month, annual) includes:
- Fully installed desktop versions of Word, Excel, PowerPoint, and Outlook on up to five devices per user
- Microsoft Teams for meetings, chat, and calls
- SharePoint Online and OneDrive with 1TB storage per user
- Exchange Online with 100GB mailbox per user
- Teams webinars, Microsoft Bookings, and meeting recording with transcription
- Web and mobile versions of all Office applications
Google Workspace Business Standard (£11.80/user/month, annual) includes:
- Gmail with 2TB pooled cloud storage per user
- Google Meet with recording capabilities (up to 150 participants)
- Google Drive, Docs, Sheets, Slides, and Forms
- Google Chat for team messaging
- Google Vault for eDiscovery and archiving (included from Business Standard)
- AppSheet for no-code application building
The most material difference is desktop applications. Microsoft 365 Business Standard includes a locally installed Office suite: Outlook on the desktop, Excel for Windows or Mac, Word, and PowerPoint. Google Workspace has no equivalent; all document work happens in a browser. For teams whose workflows are built around desktop applications, that distinction alone may settle the M365 vs Google Workspace comparison UK question for them before price enters the calculation.
Microsoft 365 Business Standard vs Google Workspace Business Starter: Price Comparison
One comparison worth running separately is Microsoft 365 Business Standard against Google Workspace Business Starter, a cross-tier check that some businesses consider when evaluating whether they need the full Google suite or whether the entry-level plan covers their needs.
On raw price, this is a significant gap: £11.55 vs £5.90 per user per month. For 50 users on annual billing, that is:
- M365 Business Standard: £6,930 per year
- GW Business Starter: £3,540 per year
- Annual saving on Business Starter: approximately £3,390
However, Google Workspace Business Starter is not a direct equivalent to M365 Business Standard. Starter gives you only 30GB of pooled storage per user, no meeting recording, and no Vault for eDiscovery. Teams in regulated industries or with storage-heavy workflows will typically need Business Standard or above regardless.
The more useful cross-platform comparison is Business Standard to Business Standard. There, the Microsoft 365 Business Standard vs Google Workspace Business Starter price comparison gives way to a closer contest: £11.55 vs £11.80 per user, with M365 marginally ahead on licence cost alone. See Microsoft’s official plan comparison and Google Workspace’s UK pricing page for the latest published rates.
If your team is weighing Office 365 vs G Suite pricing at a 50-user scale, the headline licence cost difference on equivalent tiers is modest. The question that actually drives the decision is what each platform bundles in and what you will need to add on separately.
Hidden Costs: What Each Platform Charges Extra For
This is where the Microsoft 365 vs Google Workspace cost comparison gets genuinely interesting. Both platforms charge extra for capabilities that many businesses discover they need after signing up.
Microsoft 365 Hidden Costs to Watch
- Advanced security (Defender for Business, Intune, Azure AD Premium P1): These are included in Business Premium only. Organisations on Business Standard that need endpoint management or conditional access policies pay for them separately as add-ons, which can push the effective per-user cost close to or above Business Premium pricing. Our post on Microsoft 365 Business Basic vs Standard vs Premium covers this cost modelling in detail.
- Microsoft Copilot: The AI productivity assistant is an add-on at approximately £25/user/month on top of any Business plan. It is not bundled into any Business licence at current pricing.
- Audio conferencing: Dial-in phone numbers for Teams meetings require an additional licence on Business Standard and below.
- Additional storage: OneDrive and SharePoint storage beyond the included 1TB per user carries extra cost.
Google Workspace Hidden Costs to Watch
- Google Vault: eDiscovery and archiving is included from Business Standard upwards but not in Business Starter. Organisations in regulated sectors that require it on the entry plan pay extra.
- Endpoint management: Google’s endpoint management is functional but organisations with complex BYOD environments or Windows device fleets often need supplementary MDM tooling.
- Gemini AI: Google’s AI assistant is an add-on at Business Standard and below, mirroring Microsoft’s Copilot pricing model.
- Additional pooled storage: High-volume businesses with large file libraries or extensive Meet recording archives can exhaust the per-user allowance.
Transputec’s Microsoft 365 licensing team carries out add-on audits for UK businesses that want a clear picture of what they are actually spending versus what is included in their plan. If your current spend includes security add-ons on top of M365 Standard, a move to Business Premium may cost less overall than your existing configuration.
Is Google Workspace Cheaper Than Microsoft 365 for 50 Users?
The honest answer to “is Google Workspace cheaper than Microsoft 365 for 50 users” is: at equivalent tiers, marginally no. Microsoft 365 is fractionally cheaper on the base licence across all three comparable tiers in 2026.
At 50 users on annual billing (ex VAT), the mid-tier comparison looks like this:
- M365 Business Standard: 50 × £11.55 = £577.50/month / £6,930/year
- GW Business Standard: 50 × £11.80 = £590/month / £7,080/year
- Annual difference: £150 in favour of Microsoft 365
That gap widens slightly at the entry tier and closes at the upper tier, but in all cases the difference is modest, well under 2% of total annual spend. No business should choose one platform over the other purely on that basis.
How to Decide: A Framework for UK Growing Businesses?
With licence costs so closely matched, the decision between Microsoft 365 and Google Workspace comes down to fit rather than fee. Work through these questions:
- Do your users rely on desktop Office applications? If yes, Microsoft 365 Standard or above is the natural home. Google has no offline desktop equivalent.
- Do you need advanced endpoint management or identity controls? Microsoft 365 Business Premium bundles Intune, Defender, and Azure AD Premium P1 in one licence. Equivalent capability on Google Workspace requires third-party tooling at additional cost.
- Is your team already fluent in one platform? Retraining 50 people costs money even when it is never itemised on an invoice. Factor it in.
- What does your current add-on spend look like? Run a Microsoft 365 licence audit before signing a renewal. Many businesses are paying for features twice over.
- What did the July 2026 price changes mean for your renewal? Microsoft increased Business Basic and Standard pricing this year. Our post on the Microsoft 365 price increase 2026 covers the impact in full.
Transputec’s Modern Workplace team works with UK businesses to model the genuine total cost of each platform, accounting for current add-on spend, migration costs if applicable, and security tooling requirements. The goal is to give IT leaders a decision grounded in real numbers.
The Real Cost of Switching from Google Workspace to Microsoft 365
For organisations asking about switching from Google Workspace to Microsoft 365 cost UK, the migration question carries more financial weight than the licence fee. A full platform migration for 50 users involves:
- Email and calendar data migration (typically two to four weeks of project time)
- File migration from Google Drive to SharePoint and OneDrive, with permission mapping
- User training on unfamiliar applications and workflows
- Productivity adjustment during the transition period
- Potential third-party migration tooling costs
For a 50-user business, a professionally managed migration typically runs between £3,000 and £8,000 depending on data volume, complexity, and whether training is included. That cost needs to be weighed against any licence saving and set against the operational benefits of the new platform.
Transputec manages cloud migrations for UK businesses, including Google Workspace to Microsoft 365 transitions. A pre-migration assessment gives a realistic view of effort, cost, and timeline before any commitment is made.
Conclusion
The Microsoft 365 vs Google Workspace cost question does not resolve cleanly in either platform’s favour. On base licence fees, Microsoft 365 is marginally cheaper at every comparable tier in 2026. On total cost of ownership, the platform that costs less depends on what your team actually needs, what security tools you carry alongside your licence, and whether a migration to a different platform would be worth the transition investment.
For most UK growing businesses sitting on a standard productivity plan, the better question is not “which is cheaper?” but “which gives us the most value for what we are already spending?” That often means auditing current add-ons before renewal, modelling the cost difference between Standard and Premium, and getting a clear view of what a migration would actually involve before treating it as a serious option.
Transputec works with UK businesses as a certified Microsoft Solutions Partner to carry out licence assessments, model platform costs, and manage transitions without disruption. Contact us to arrange a conversation before your next renewal.
FAQs
What is the Microsoft 365 vs Google Workspace cost difference in the UK?
In 2026, Microsoft 365 vs Google Workspace cost at equivalent tiers favours Microsoft by a small margin. On annual commitment (ex VAT), Microsoft 365 Business Basic is £5.75/user/month vs Google Workspace Business Starter at £5.90, Business Standard is £11.55 vs £11.80, and Business Premium is £18.10 vs Business Plus at £18.40. Across every tier, Microsoft 365 is marginally cheaper on base licence cost. The bigger cost variables are add-on tools, security capabilities bundled into each plan, and — for businesses considering a platform change — migration costs. Transputec’s Microsoft 365 team carries out total cost comparisons for UK businesses to give a realistic picture of actual spend.
Is Microsoft 365 Business Standard cheaper than Google Workspace Business Standard?
Yes, Microsoft 365 Business Standard is marginally cheaper than Google Workspace Business Standard in the UK. On annual billing (ex VAT), M365 Business Standard costs £11.55 per user per month versus £11.80 for Google Workspace Business Standard — a saving of £0.25 per user per month, or approximately £150 per year for a 50-user team. The platforms bundle different features at that tier: M365 Standard includes fully installed desktop Office applications, while Google Workspace Business Standard does not offer a desktop Office equivalent but includes Vault for eDiscovery and more generous pooled cloud storage. The right choice depends on what your team actually needs, not the licence cost difference alone.
How much does it cost to switch from Google Workspace to Microsoft 365 for 50 users in the UK?
For a 50-user business in the UK, switching from Google Workspace to Microsoft 365 typically costs between £3,000 and £8,000 in migration services, covering email and calendar migration, Google Drive to SharePoint and OneDrive file migration with permission mapping, user training, and project management. Data volume, workflow complexity, and whether training is included all affect the final cost. The annual licence saving on equivalent tiers is approximately £150 for 50 users — far less than a typical migration engagement — so the business case for switching needs to be grounded in platform fit and capability, not the marginal price difference. Transputec manages cloud migrations for UK businesses and provides pre-migration assessments before any commitment is made.
Which is better value for money: Microsoft 365 or Google Workspace?
Neither platform is definitively better value across all business types — it depends on working patterns and security requirements. Microsoft 365 Business Premium offers strong value for businesses that need endpoint management (Intune), advanced identity controls (Azure AD Premium P1), and threat protection (Defender for Business) in a single licence. If you are currently paying for those tools as separate add-ons on Standard, Premium may already cost less overall. Google Workspace Business Standard offers good value for cloud-native teams that live in a browser, need generous shared storage, and do not rely on desktop Office applications. For a detailed cost model for your specific headcount and configuration, speak with Transputec’s Modern Workplace team.
Has the Microsoft 365 price increase in 2026 made Google Workspace more competitive?
The July 2026 Microsoft 365 price increase did make Google Workspace slightly more competitive in relative terms. Microsoft raised Business Basic by approximately 17% and Business Standard by approximately 12%, while Google Workspace pricing did not change at the same time. Even after those increases, Microsoft 365 remains marginally cheaper than Google Workspace at each comparable tier. Business Premium was not affected by the July 2026 increase, narrowing the gap between Standard and Premium. If your M365 subscription renews in the second half of 2026, review your plan mix before auto-renewal: a move from Standard with security add-ons to Premium may cost less than you expect. Read our full analysis of the Microsoft 365 price increase 2026 for the complete breakdown.
