Microsoft 365 vs Google Workspace: A UK SME Guide

Last updated: September 2026 

By Graham Dolan, Owner at Gray IT. 30 years supporting Kent SMEs. 

Microsoft 365 and Google Workspace are cloud productivity suites offering email, documents,  storage, video meetings and shared files. Microsoft 365 suits teams that rely on desktop Office  apps and Windows security. Google Workspace suits collaboration-first teams working in the  browser. Neither suite backs up your data, so third-party backup matters with both. 

Choosing between the two feels harder than it should. On paper they look almost identical. In  practice, the right pick depends on how your team works, what data you handle, and what happens  when something goes wrong. A small and medium-sized enterprise (SME) rarely needs every  feature. It needs the right fit. 

At Gray IT, we migrate Kent businesses in both directions. We see which choice firms regret, and the  one gap neither vendor puts on the sales page. This guide gives you a straight answer, the real costs,  and what to protect once you have chosen. 

What is the difference between Microsoft 365 and Google Workspace? 

The main difference is design philosophy. Microsoft 365, built around desktop Office and  Outlook, suits installed-software workflows. Google Workspace, built for the browser, suits real time collaboration. Both cover email, storage, meetings and files. They split most on desktop  apps, storage models and security design. 

Microsoft 365 is the current name for the product many people still call Office 365. It centres on  installed apps like Word, Excel and Outlook, plus Microsoft Teams for chat and calls. 

Google Workspace was built for the browser first. Its apps (Gmail, Docs, Sheets and Slides) run in a  browser tab. They were designed for people editing together at the same time. 

Storage works differently on each. Microsoft 365 gives every user a fixed allowance. Google  Workspace uses a pooled model shared across your whole organisation. 

Which is cheaper for a small business, Microsoft 365 or Google Workspace? 

Google Workspace is usually a little cheaper than Microsoft 365 on entry plans, though the two  are closely matched overall. All UK prices exclude 20% VAT. Monthly billing costs roughly 20%  more than an annual commitment. Your true cost also depends on AI add-ons, backup licensing  and admin time.

Plan	Price (per user/month, ex  VAT)	Best for
Microsoft 365 Business Basic	around £4.60	Web and mobile apps only

Microsoft 365 Business Standard	around £9.60	Adds desktop Office apps
Microsoft 365 Business Premium	around £16.90	Adds security and device   management
Google Workspace Business Starter	around £5.90	Small teams, 30 GB pooled storage
Google Workspace Business   Standard	around £11.80	2 TB pooled storage, larger meetings
Google Workspace Business Plus	around £18.40	Compliance tools and 500-person  meetings

Prices come from Microsoft’s UK pricing page and Google Workspace’s UK pricing page, as of 2026.  All figures exclude VAT and assume an annual commitment. 

Google tends to win on the entry tier. Microsoft closes the gap the moment you add desktop apps or bundled security. 

Hidden costs matter more than the headline. Both platforms add 20% VAT. Rolling monthly plans  cost about 20% more than a one-year commitment. 

As of 2026, Microsoft raised UK prices for Business Basic and Business Standard from 1 July, while  Business Premium held steady, according to Microsoft. Always confirm the live price before you buy. 

Is Microsoft 365 or Google Workspace more secure? 

Both suites are secure when set up correctly. Microsoft 365 Business Premium bundles  Defender for Business, Intune device management and conditional access. Google Workspace  offers strong default protections and simple admin controls. In practice, security depends more  on correct configuration, multi-factor authentication and staff habits than on the platform you  choose. 

Microsoft 365 Business Premium leans on Windows-native tools. Defender for Business, its endpoint protection, guards laptops from malware. Intune, its device manager, controls phones and laptops.  Conditional access blocks risky sign-ins. 

Google Workspace takes a simpler route. Its defaults are strong out of the box. Admins get clear  controls without deep configuration work. 

Multi-factor authentication (MFA) is the biggest single win on either platform. MFA adds a second  check, like a phone prompt, on top of a password. Turn it on for every user, whichever suite you run. 

Getting the setup right is where most SMEs slip. Sensible defaults are not the same as a hardened  tenant. This is core cyber security for SMEs work, and it pays for itself the first time an attack is  blocked. 

Does Microsoft 365 or Google Workspace back up your data? 

No. Neither Microsoft 365 nor Google Workspace is a backup. Both use a shared-responsibility  model, where the vendor keeps the service running and you stay responsible for your data.  Native recycle bins and retention are short-lived. They will not reliably recover files after  ransomware, malicious deletion or a departing employee. 

Here is the part vendors rarely spell out. Their job is uptime and infrastructure. Yours is the data  itself. That split is the shared-responsibility model, and it catches many owners by surprise.

Recycle bins help with quick mistakes. They do little six months later. A staff member deletes a  folder, leaves the company, and the retention window quietly closes. 

Ransomware makes the gap worse. It can encrypt files that then sync to the cloud. Without a  separate backup, your clean copy is already gone. 

The UK’s National Cyber Security Centre (NCSC) advises keeping backups separate from your live  systems. That is exactly what suite-native retention does not give you. 

A separate backup closes the gap. Good cloud backup for Microsoft 365 and Google Workspace keeps daily copies you control, ready to restore in minutes. 

How hard is it to migrate between Microsoft 365 and Google Workspace? 

Migrating between Microsoft 365 and Google Workspace is routine but rarely seamless. Email,  contacts and calendars move reliably. Friction shows up in shared mailboxes, permissions, third party app logins and file formatting. Most small-business migrations finish within days, with little downtime, when an experienced provider plans and runs the move. 

A typical migration follows these steps: 

1. Audit your current mailboxes, files and shared drives. 
2. Set up the new suite and verify your domain. 
3. Migrate email, contacts and calendars in a test batch first. 
4. Move files and remap shared permissions. 
5. Reconnect third-party apps and mobile devices. 
6. Cut over, then keep the old system read-only for a short spell. 

Most data moves cleanly. The snags are predictable. Shared mailboxes, calendar permissions and  app logins all need manual attention. 

File formatting is the other catch. A complex Excel sheet may not open perfectly in Google Sheets,  and the reverse happens too. Planned Microsoft 365 migration work tests these files early, so  nothing breaks on switch-over day. 

Which suite is better for desktop Office and Excel-heavy teams? 

For heavy desktop Excel work, Microsoft 365 is the stronger choice. It gives full desktop Office  apps and complex Outlook workflows. Google Sheets and Docs handle everyday tasks well but  lack some advanced desktop features. Collaboration-first teams that live in the browser often  prefer Google Workspace for real-time editing and a simpler design. 

Some jobs still need real desktop power. Advanced Excel formulas, macros and large financial  models run best in the installed app. 

Google shines in a different way. Two people can edit one document at once with no version clashes. For many teams, that speed matters more than deep features.

Copilot vs Gemini: which suite includes AI, and is it worth it? 

Gemini, Google’s AI assistant, now comes bundled with Google Workspace Business plans at no  extra cost. Copilot, Microsoft’s AI assistant, is usually a paid add-on on top of a Microsoft 365  licence. For small firms, this makes AI a real cost factor: included with Google, an upsell with  Microsoft. Confirm current terms, because both change often. 

Bundled AI changes the maths. With Google, the assistant is part of the plan. With Microsoft, you  pay more per user to add Copilot. 

Whether it earns its keep depends on use. Teams that draft, summarise and analyse daily see value  fast. Occasional users may barely notice it. 

Which should a Kent SME actually choose? 

Most Kent SMEs are best served by Microsoft 365 Business Premium. It suits firms that handle  client data or use desktop Office, thanks to bundled security and device management.  Collaboration-first businesses with simpler needs fit Google Workspace well. Your choice  depends on existing tools, security duties and how staff prefer to work. 

A note on transparency. Gray IT is a Microsoft Partner. We still recommend Google Workspace when it fits a business better, and we say so plainly. 

Choose Microsoft 365 if you: 

• Rely on advanced desktop Excel or Outlook. 
• Handle sensitive or regulated client data. 
• Want security and device management inside one plan. 

Pick Google Workspace if you: 

• Work mostly in the browser. 
• Value fast, real-time collaboration. 
• Prefer simple admin and AI included as standard. 

Can you run Microsoft 365 and Google Workspace together? 

Yes. Businesses can run Microsoft 365 and Google Workspace side by side, and some do during  a transition or across departments. It works, but it adds admin overhead, licensing cost and  support complexity. Split email or file systems can also confuse staff. For most small firms,  standardising on one suite is simpler and cheaper. 

Running both has real uses. A company mid-merger often inherits each. One department might  prefer a different toolset to another. 

Complexity is the price. Two admin panels, two bills and two support contracts soon add up. Most  SMEs settle on a single suite within a year. 

The bottom line for your business 

Fit decides this, not brand. Microsoft 365 rewards desktop-heavy, security-conscious teams. Google  Workspace rewards browser-first, collaboration-led teams. Whichever you choose, the suite alone  will not back up your data.

Gray IT plans and runs Microsoft 365 and Google Workspace migrations for Kent SMEs, and sets up  the backup and security the suites leave out. Book a no-obligation review with our managed IT  support in Kent team, and get a straight answer for your business. 

Not sure which suite fits how your team works? Tell us, and we will point you the right way. Frequently asked questions 

Is Google Workspace cheaper than Microsoft 365? 

At UK list prices, Google Workspace is usually slightly cheaper than Microsoft 365 on entry tiers,  though the two are closely matched overall. All prices exclude 20% VAT, and monthly billing costs  about 20% more than annual. True cost also depends on AI add-ons, backup and admin overhead. 

Is Microsoft 365 or Google Workspace more secure? 

Both are secure when configured correctly. Microsoft 365 Business Premium bundles Defender,  Intune and conditional access, suiting Windows-heavy firms. Google Workspace offers strong secure  defaults and simple controls. In practice, security depends more on correct setup, multi-factor  authentication and staff behaviour than on which platform you pick. 

Does Microsoft 365 or Google Workspace back up my data? 

No. Neither suite is a backup. Both use a shared-responsibility model: the vendor keeps the service  running, but you are responsible for your data. Native retention is short-lived and will not reliably  recover from ransomware, deletion or a leaver. Third-party backup is essential with either suite. 

Can I migrate from Google Workspace to Microsoft 365? 

Yes, and in the other direction too. Email, contacts and calendars migrate reliably, while shared  mailboxes, permissions and file formatting need careful handling. Most SME migrations finish within  days with minimal downtime when planned and run by an experienced provider. A phased cut-over  reduces the risk of disruption. 

Which is better for a small business? 

It depends on how your team works. Microsoft 365 suits businesses reliant on desktop Office,  Outlook and Windows security. Google Workspace suits collaboration-first teams comfortable in the  browser. For Kent SMEs handling client data, Microsoft 365 Business Premium is often the safer  default, but neither replaces proper backup.