Microsoft 365 suits businesses that rely on Word, Excel and Outlook, need advanced desktop features, or already work with Windows and Teams. Google Workspace suits businesses that want simple, browser-based tools with easy real-time collaboration and less to install. Both are capable, so the better choice depends on how your team works, which files you share with customers, and what you want to pay per user.
What each suite is
Both are subscription productivity suites sold per user. Each bundles business email on your own domain, documents, spreadsheets, presentations, cloud file storage, video meetings and an admin console.
- Microsoft 365: Outlook for email and calendar, Word, Excel, PowerPoint, Teams for chat and meetings, and OneDrive and SharePoint for files. Some business plans include the installable desktop apps. Others are web and mobile only.
- Google Workspace: Gmail, Calendar, Docs, Sheets, Slides, Meet, Chat and Drive. It is designed to run in a web browser, with offline access and mobile apps available.
Head-to-head: the differences that matter
Documents and spreadsheets
Microsoft’s desktop apps, especially Excel, offer deeper features for heavy users: complex formulas, macros, large data sets and detailed formatting. Google Docs and Sheets cover what most office work needs and are simpler to learn. If your customers, banks or auditors send you complex Word and Excel files, Microsoft 365 avoids formatting surprises.
Collaboration
Both now support several people editing the same document at once. Google built its tools around this from the start, and many teams find sharing and commenting in Docs very simple. Microsoft has added co-authoring to Word, Excel and PowerPoint, and links it closely with Teams.
Email and calendar
Outlook is a full-featured desktop email client that many office workers already know. Gmail is fast, browser-based and has strong search. Both offer calendars, shared mailboxes or groups, and spam filtering.
Meetings and chat
Teams combines chat, channels, file sharing and meetings in one app, which suits organisations that run much of their work through it. Google Meet is lighter and easy to join from a browser. Google Chat handles messaging.
Storage and file sharing
OneDrive handles personal files and SharePoint handles team sites and shared libraries. Google Drive offers My Drive for personal files and shared drives for teams. Storage limits vary by plan, so check the current figures on each vendor’s site.
Administration and security
Both provide an admin console, two-factor authentication, device management and data protection features, with more advanced controls on higher plans. Microsoft’s tools are detailed and suit organisations with an IT team. Google’s admin console is often considered simpler for small businesses.
Price
Both charge per user per month, with several plan levels and different prices for monthly and annual commitments. Prices change and vary by country, so compare the current plans directly on each vendor’s site. Count every user who needs a mailbox. Per-user pricing adds up quickly as your team grows.
Which is better for your business?
Choose Microsoft 365 if
- Your team uses Excel heavily or depends on desktop Office features.
- You exchange a lot of Word and Excel files with clients, government or banks.
- You run Windows devices and want Teams at the centre of your communication.
- You have an IT person or partner to manage it.
Choose Google Workspace if
- You want everything in the browser, with little to install or update.
- Your team collaborates live on documents a lot.
- Staff already use Gmail and Google Docs personally.
- You want simple administration without a dedicated IT team.
What if you only need business email?
Many small businesses buy a full suite when what they really need is professional email on their own domain. If your staff are happy using free document tools or already own Office, dedicated business email can cost far less, because you are not paying for apps you do not use.
Tremhost business email includes webmail, IMAP, POP3 and SMTP so it works in Outlook and phone mail apps. It also includes spam and virus filtering, two-factor authentication, and SPF, DKIM and DMARC set up for you. The SME plan is $5 a month or $60 a year for up to 50 mailboxes with 75 GB in total. It is not priced per user. Corporate Plus is $10 a month or $120 a year for up to 500 mailboxes.
Things to plan before you switch
- Migrating email: plan how existing mail, contacts and calendars will move.
- DNS changes: MX, SPF, DKIM and DMARC records must be updated correctly, or mail may bounce or land in spam. See why emails go to spam.
- Training: allow time for staff to learn the new tools.
- Exit plan: make sure you can export your data if you change again later.
Frequently asked questions
Can Google Workspace open Word and Excel files?
Yes. Google Docs and Sheets can open, edit and save Office files. Complex formatting, macros and advanced Excel features may not convert perfectly.
Can I use my own domain with either suite?
Yes. Both let you use email addresses on your own domain. You prove ownership and update your domain’s DNS records.
Can I mix suites, or use one with separate email hosting?
Yes. Some businesses use dedicated email hosting for mailboxes and buy suite licences only for staff who need the apps. This can lower costs, but it means two systems to manage.
Which is more secure?
Both offer strong security when set up properly. Most breaches come from weak passwords, phishing and poor settings rather than the platform. Turn on two-factor authentication whichever you choose.
Next step
If professional email is your main need, compare plans on the Tremhost business email page.
