Choose Microsoft 365 if your team needs the desktop Word, Excel and Outlook apps, or already works in Teams; that means Business Standard or Business Premium, because Business Basic includes only the web versions of the apps. Choose Google Workspace if your team lives in the browser and you want storage that pools across the company. Neither is a mistake for a small business: both include business email, video meetings, shared file storage and Office-file compatibility, and both cap their business plans at 300 users.
Most of the real difference is in the details that decide whether a plan fits: how storage is counted, how many people a meeting can hold, which tier adds email retention, and which tier adds device management.
This comparison is desk research from Google’s and Microsoft’s own documentation, checked on October 9, 2026. Neither suite was used hands-on for this page. Plan prices change and aren’t quoted here; both vendors publish them on their plan pages.
Google Workspace vs Microsoft 365 at a glance
| Google Workspace (Business plans) | Microsoft 365 (Business plans) | |
|---|---|---|
| Plans | Business Starter, Standard, Plus | Business Basic, Standard, Premium |
| User limit | 300 users on each Business plan | 300 users across the Business plans |
| Storage per user | Pooled: 30 GB, 2 TB or 5 TB by plan | 100 GB mailbox plus 1 TB OneDrive |
| Video meetings | Meet: 100, 150 or 500 participants | Teams: up to 300 people on all three |
| Desktop Office apps | Browser apps; opens and edits Office files | Business Standard and Premium only |
| Retention and eDiscovery | Vault included with Business Plus | Archive mailbox: 50 GB, or up to 1.5 TB on Premium |
How the plans line up
Entry plans: Google Business Starter vs Microsoft 365 Business Basic. Both give each person business email, video meetings and cloud storage, and neither includes desktop apps. Starter’s storage is 30 GB per user, pooled; Basic gives each person a 100 GB mailbox and 1 TB of OneDrive. Starter meetings hold 100 participants and can’t be recorded to Drive; Teams meetings on Basic hold up to 300 people. Google’s Starter plan includes Gemini in Gmail and Vids and basic access to the Gemini app; Gemini in Docs, Sheets, Slides, Drive, Meet and Chat starts at Business Standard.
Middle plans: Google Business Standard vs Microsoft 365 Business Standard. This is where most small offices land. Microsoft’s Standard adds the desktop Microsoft 365 apps. Google’s Standard raises storage to 2 TB per user, meetings to 150 participants with recording to Drive, and adds appointment booking pages and eSignature in Docs and PDFs.
Top business plans: Google Business Plus vs Microsoft 365 Business Premium. Google’s Plus adds Vault for retention and eDiscovery, 5 TB per user, 500-participant meetings and advanced endpoint management. Microsoft describes Business Premium as its productivity-and-security plan for businesses with up to 300 users: it adds management and security for Windows, Mac, iOS and Android devices and protection against phishing, ransomware and data loss. Exchange Online also gives Premium users an archive mailbox that auto-expanding archiving can grow to 1.5 TB.
Microsoft 365 Business Standard is also sold on Amazon as a 12-month, one-person subscription with the desktop apps and 1 TB of OneDrive. That suits a solo business; for a team, buying seats inside one Microsoft 365 admin account keeps billing and licenses in one place.
Storage is counted differently
Google pools storage. Each Business Starter seat adds 30 GB to a shared company total, each Standard seat adds 2 TB and each Plus seat adds 5 TB, and that pool is shared across the organization. So one person’s heavy use draws on the company total rather than a fixed personal allowance.
Microsoft splits storage by service. Each person on a Business plan has a 100 GB Exchange mailbox and 1 TB of OneDrive, and the archive mailbox is 50 GB on Basic and Standard. On Premium it starts at 100 GB and can grow to 1.5 TB once auto-expanding archiving is turned on. Exchange stops a mailbox from sending at 99 GB and rejects incoming mail at 100 GB, so long-running inboxes need an archive or retention plan either way.
Meetings, retention and offboarding
Meeting size. If you run webinars or all-hands calls, check the cap first. Google Meet holds 100 participants on Starter, 150 on Standard and 500 on Plus. Microsoft Teams holds up to 300 people on Business Basic, Standard and Premium alike.
Retention. Google Vault, which can keep email, chat and files after people delete them, is included with Business Plus and isn’t part of Starter or Standard. Google’s Vault help notes that deleting a user, or removing a license Vault needs, may irreversibly purge that person’s data. So decide what to keep before you remove anyone.
Offboarding. On either suite, treat each account as company property. Write down where each person’s mail, files and shared drives go when they leave, and run that as part of your permission audit. Shared folders that belong to the company, not to one person, make this easier on both platforms; see how to manage shared files.
How to choose
- List the apps people open every day. If anyone needs desktop Excel or Outlook, Microsoft 365 Business Standard and Premium include them; Google Workspace and Business Basic don’t. If everyone works in a browser, both suites qualify.
- Check what clients and partners send you. Google lists Office-file interoperability on every plan, but a team that edits complex Office files all day may be better served by the desktop apps.
- Size storage the way each vendor counts it. Add up current mailbox and file storage per person. Google’s pooled model forgives uneven use; Microsoft’s per-person mailbox and OneDrive limits are generous but fixed.
- Match the meeting cap to your biggest regular call.
- Decide whether you need retention or device management now. Those are the main reasons to move up to Business Plus or Business Premium. If you don’t, the middle plan on either side covers most small offices.
- Stay with the suite your other tools connect to. Your CRM, scheduling and file tools probably sync with one suite more cleanly than the other; check the email and CRM sync details before switching.
Frequently Asked Questions
Can Google Workspace open Word and Excel files?
Yes. Google lists interoperability with Office files on every Workspace plan. If people need the desktop Word, Excel and Outlook apps themselves, that’s Microsoft 365 Business Standard or Premium; Business Basic includes only the web versions.
Which plan includes email retention and legal holds?
On Google Workspace, Vault comes with Business Plus, not Starter or Standard. On Microsoft 365, Business Premium has the largest archive mailbox (up to 1.5 TB with auto-expanding archiving, versus 50 GB on Basic and Standard).
Is it OK to buy Microsoft 365 Business Standard on Amazon?
Amazon sells a 12-month, one-person Microsoft 365 Business Standard subscription. That can suit a solo business. A team usually manages seats more easily by buying them in one Microsoft 365 admin account.
Sources
Checked October 9, 2026.
See Also
If you want to move from general advice into actual product choices, start with Business Phone Service for a Small Team: VoIP Options and 911 Rules, E-Signature Tools for a Small Business: Docusign, Dropbox Sign or Google Workspace, and How to Version Control SOPs So Updates Don't Get Lost.
For a wider picture after the basics, Brother QL-800 Review: Office Labels, Red Printing and the Width Limit and CRM for Beginners: A Simple Guide for Small Business Teams are the next places to read.