Microsoft 365 or Google Workspace – which fits small businesses?
An honest comparison for SMBs: cost, data protection, integration and migration effort – without the marketing fluff.
Email, calendar, files, documents, video calls – almost every business needs this foundation. The question is rarely whether, but with what: Microsoft 365 or Google Workspace? Both work. The difference is in the detail – and that's exactly where it's decided which one fits your operation.
The short answer
My rule of thumb from practice:
- Microsoft 365 is the obvious choice for most SMBs as soon as Office documents (Word, Excel, PowerPoint) play a central role, Windows devices are in use, or line-of-business software needs to be connected. That's almost always the case for classic businesses – trades, retail, services.
- Google Workspace plays to its strengths when the team already works browser-based, edits documents together in real time a lot, and wants the leanest possible administration – often with young, digitally minded teams.
If you're unsure and already use Office files and Windows, Microsoft 365 Business Standard is usually the pragmatic starting point.
Cost
Both vendors bill per user per month. Reference points (as of spring 2026, net, annual plan – please check current figures):
| Plan | Microsoft 365 | Google Workspace |
|---|---|---|
| Entry | Business Basic ≈ €5.20 | Business Starter ≈ $7 |
| Standard | Business Standard ≈ €10.80 | Business Standard ≈ $14 |
| Premium | Business Premium ≈ €19.10 | Business Plus ≈ $22 |
Two important notes:
- Microsoft raises prices on 1 July 2026 (Business Basic approx. +25%, Business Standard approx. +12%; Business Premium stays stable). If you plan longer-term, factor this in.
- Google Workspace prices vary by region and tax; exact euro amounts are on the official pricing page.
But the raw licence price is rarely the deciding factor. More relevant: which features you actually need (often the smaller plan suffices), migration effort, and day-to-day support/training effort.
Data protection (GDPR)
For German companies this is often the knockout criterion. Both vendors have improved: Microsoft offers EU data processing via the "EU Data Boundary", Google a comparable option with "data regions". Both provide a data processing agreement (DPA).
What to watch: actually conclude the DPA, configure the data region correctly, and consciously assess possible third-country transfer (especially the US). The details change constantly – this article is not legal advice, it shows the points that matter in practice.
Integration into daily work
| Criterion | Microsoft 365 | Google Workspace |
|---|---|---|
| Office documents | strength | good, sometimes conversion needed |
| Live collaboration | good | strength |
| Windows / device management | seamless (Intune in Premium) | neutral |
| LOB software integration | usually easier | depends on vendor |
| Administration | more extensive | very lean |
Migration: the underestimated effort
The switch rarely fails on the tool, but on the migration. A proven approach in five steps:
- Inventory: mailboxes, aliases, distribution lists, shared drives, calendars and permissions.
- Target structure & licences: pick plans matching actual usage – not blanket the biggest.
- Test migration: with a small pilot group before everyone moves.
- Cutover: transfer data finally, switch DNS/MX records, closely accompanied.
- Follow-up: short training, old system as fallback, then shut it down cleanly.
With a plan it's done in days – without one it becomes weeks of frustration.
Conclusion
There is no "better" – there is "better for you". Whoever thinks through cost, data protection and migration beforehand spares themselves expensive re-switches.
Unsure which solution fits your business? In a free initial consultation we'll look at your situation concretely.