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Both suites now cover essentially the same feature list on paper — email, documents, spreadsheets, cloud storage, video calls — so the deciding factor is usually collaboration style and file compatibility with people outside your organization.
Google Workspace: browser-first, real-time collaboration
Google Workspace was built browser-first from the start, and its real-time multi-editor collaboration in Docs and Sheets is still generally considered smoother than Microsoft's equivalent, particularly for teams collaborating live rather than passing files back and forth. If your team works mostly in-browser across mixed devices (Chromebooks, Macs, Windows), Workspace's platform-agnostic design is a real advantage.
Microsoft 365: desktop-app depth and enterprise integration
Microsoft 365 Business still has the more feature-complete desktop applications — Excel's advanced formula and pivot table capabilities in particular remain ahead of Google Sheets for complex spreadsheet work. It also integrates more deeply with enterprise tools many companies already run (Active Directory, SharePoint, Teams).
File compatibility with the outside world
If you regularly exchange files with clients or partners, it's worth checking which format they expect — Microsoft's native .docx/.xlsx formats remain the more universally expected standard in many industries, even though Google Workspace can export to those formats without issue.
Personal vs. team pricing
For individual or family use rather than a team deployment, Microsoft 365 Personal and Microsoft 365 Family are priced very differently from the business tiers above — don't compare business-tier pricing against a personal use case.
Storage limits differ by plan tier within each suite
Cloud storage allowances vary significantly by specific plan tier within both Google Workspace and Microsoft 365, not just between the two suites — heavy file users should compare storage limits at the exact tier they're considering rather than assuming all tiers within a suite offer the same allowance.
Admin console complexity is worth a mention for anyone managing the deployment themselves rather than through IT — Google Workspace's admin console is generally regarded as more approachable for a small team managing their own setup, while Microsoft 365's admin center has more depth but a steeper learning curve for a non-specialist.
Third-party app marketplace integrations differ between the two ecosystems — if your team already relies on specific third-party tools, checking their native integration support with each suite beforehand avoids discovering a compatibility gap after migrating.
Migration tools for moving an existing email archive and files from one suite to the other are provided by both vendors, though the process can take significant time for large mailboxes — worth planning a migration during a lower-activity period rather than mid-project.
Both suites offer nonprofit and education-specific discounted pricing tiers separate from standard business pricing, worth checking eligibility for either if you qualify.
Both suites support two-factor authentication and single sign-on for enterprise security, worth enabling by default regardless of which suite you choose.
Both suites support custom email domains at every paid tier, so a professional address tied to your own domain works identically either way.
The bottom line
Real-time browser collaboration, mixed-device team: Google Workspace. Desktop app depth, existing Microsoft ecosystem: Microsoft 365. Both are in Productivity & Education alongside standalone tools like Slack and Asana.