Choosing between Microsoft 365 and Google Workspace is one of the most common decisions small business owners ask us about. Both are excellent, mature platforms - so the question isn't really which is better, it's which is better for your specific situation.
Having migrated businesses in both directions, and managing both platforms daily for clients across Nottingham, Derby and Leicester, here's our honest assessment.
The Quick Answer
If you need a shortcut before we get into detail:
- Choose Microsoft 365 if your team works heavily in Word, Excel or PowerPoint; if you use Teams for communication; if you need robust desktop apps; or if you're in a regulated sector that requires advanced security and compliance tools.
- Choose Google Workspace if your team primarily needs web-based collaboration, you're comfortable with browser-based tools, and simplicity matters more than feature depth.
In practice, we recommend Microsoft 365 to the majority of UK small businesses - primarily because of the depth of the platform, the security tooling available in Business Premium, and the fact that most UK SMEs are already using Office file formats for client work.
Applications Comparison
| Function | Microsoft 365 | Google Workspace |
|---|---|---|
| Word processing | Word (desktop + web) | Google Docs (web only) |
| Spreadsheets | Excel (desktop + web) | Google Sheets (web only) |
| Presentations | PowerPoint (desktop + web) | Google Slides (web only) |
| Outlook / Exchange | Gmail | |
| Calendar | Outlook Calendar | Google Calendar |
| Video calling | Microsoft Teams | Google Meet |
| File storage | OneDrive / SharePoint | Google Drive |
| Team messaging | Teams | Google Chat |
The most significant functional difference is desktop apps vs browser-only. Microsoft 365 includes full desktop versions of Word, Excel, PowerPoint and Outlook. Google Workspace is entirely browser-based - which works well on fast, reliable internet connections but can be frustrating in areas with poor connectivity or on lower-spec hardware.
Pricing
As of 2026 (ex-VAT, annual billing):
| Plan | Price/user/month | Key inclusions |
|---|---|---|
| M365 Business Basic | £4.90 | Web apps, Teams, 1TB OneDrive |
| M365 Business Standard | £9.90 | Desktop apps, Teams, 1TB OneDrive |
| M365 Business Premium | £16.60 | Standard + Intune, Defender, advanced security |
| Google Workspace Starter | £4.60 | 30GB storage, web apps, Meet, Chat |
| Google Workspace Standard | £9.20 | 2TB pooled storage, enhanced security |
| Google Workspace Plus | £18.40 | 5TB storage, advanced security, eDiscovery |
Prices are comparable at equivalent tiers. The meaningful difference comes at the premium tier: Microsoft 365 Business Premium at £16.60/user/month includes a genuinely comprehensive security stack (Intune for device management, Microsoft Defender for endpoint and email security, Azure AD P1 for Conditional Access) that would cost significantly more to replicate with standalone Google Workspace add-ons.
Security and Compliance
For regulated sectors - healthcare, legal, financial services, accountancy - this section matters most.
Both platforms offer strong baseline security. The key differences at the premium tier:
- Microsoft 365 Business Premium includes Microsoft Intune (full MDM/MAM), Microsoft Defender for Business (EDR for endpoints), Defender for Office 365 (advanced email security), and Azure AD Conditional Access. This is an enterprise-grade security stack available to businesses with as few as one user.
- Google Workspace Plus includes endpoint management (less comprehensive than Intune), Vault for eDiscovery and retention, and DLP. It's solid, but less integrated with endpoint security.
For businesses seeking Cyber Essentials certification, both platforms support it - but M365 Business Premium makes meeting many of the technical requirements significantly easier to demonstrate and maintain.
Migration Considerations
If you're migrating from one platform to the other, here's what to plan for:
Migrating to Microsoft 365
- Email migration from Google Gmail is well-supported via Microsoft's migration tools
- Google Drive files in native formats (Docs, Sheets, Slides) will need converting to Office formats - some formatting may not transfer perfectly
- Allow 1–2 days downtime-free for a business of under 50 users
Migrating to Google Workspace
- Email migration from Exchange/Outlook is supported via Google's migration tools
- Office files (.docx, .xlsx, .pptx) will need to be opened and re-saved in Google formats, or kept as Office format files in Drive
- Staff require training - the interface and workflow differences are meaningful for heavy Excel/Outlook users
The Bottom Line
Google Workspace is an excellent, genuinely competitive product - particularly for startups, tech-forward teams, and businesses that prioritise simplicity over depth. If you're already deep into Google's ecosystem and your team loves it, there's no compelling reason to move.
For most UK small businesses, particularly those in professional services, finance, healthcare or any sector where they produce documents that clients expect in Office format, Microsoft 365 Business Premium represents the better long-term platform - the security tools alone justify the modest premium over Business Standard.
If you're evaluating platforms or planning a migration, talk to CloudHost. We're a Microsoft Cloud Solution Provider and we can advise on the right licensing structure, manage a migration with zero disruption to your team, and handle ongoing support.