Both Microsoft 365 and Google Workspace are excellent productivity suites. Both will give your team email, document collaboration, video calls, and cloud storage. The question isn't which one is objectively better — it's which one is better for your specific business.
We've migrated Sydney businesses in both directions — from Google to Microsoft and Microsoft to Google — so this isn't a vendor pitch. Here's what you actually need to know to make the right call.
Side-by-Side Comparison
| Feature | Microsoft 365 Business Standard | Google Workspace Business Starter |
|---|---|---|
| Price (AUD/user/month) | ~$21.60 | ~$10.80 |
| Outlook + Exchange Online (50GB) | Gmail (30GB pooled) | |
| Word processing | Word (desktop + web) | Google Docs (web only) |
| Spreadsheets | Excel (desktop + web) | Google Sheets (web only) |
| Video calls | Microsoft Teams | Google Meet |
| File storage | OneDrive (1TB/user) | Google Drive (30GB pooled) |
| Desktop apps | Yes (Word, Excel, Outlook, etc.) | No |
| Offline access | Full offline via desktop apps | Limited offline mode |
| Advanced security | Business Premium adds Defender + Intune | Enterprise tier required |
Where Microsoft 365 Wins
Desktop Office applications
This is the biggest differentiator for most Australian businesses. Microsoft 365 Business Standard (and above) includes the full desktop versions of Word, Excel, PowerPoint, and Outlook — installed on up to five PCs or Macs per user.
For accountants working in complex Excel models, lawyers formatting detailed Word documents, or anyone who spends significant time in Office apps, the desktop experience is substantially better than the web-only alternatives. Google Docs and Sheets have improved considerably, but they still lag behind on complex formatting, advanced Excel formulas, and macro support.
Security and compliance features
Microsoft 365 Business Premium includes Microsoft Defender for Business, Intune device management, Azure AD Premium P1, and Microsoft Purview compliance tools. This is enterprise-grade security at SMB pricing, and it's genuinely difficult to match with Google Workspace at equivalent price points. For businesses handling sensitive data — legal, medical, financial, or government-adjacent — this often makes the decision straightforward.
Outlook and Exchange
Many Australian businesses have staff who prefer Outlook's interface, particularly for managing shared calendars, delegate access, and complex email rules. Exchange Online also integrates more cleanly with on-premise systems if you have any legacy infrastructure.
Microsoft Teams calling
Teams Phone (available as an add-on to M365) allows businesses to replace their entire phone system with Teams-based calls, including direct numbers, call routing, and voicemail. Google Meet does not offer equivalent calling plan functionality for Australian businesses.
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Real-time collaboration
Google pioneered real-time document collaboration, and while Microsoft has closed the gap significantly, Google Docs and Sheets still feel smoother for multiple people editing simultaneously. If your team heavily co-authors documents in real time — marketing agencies, consultancies, editorial teams — Google's collaboration experience is marginally better.
Simplicity and onboarding speed
Google Workspace is easier to set up and requires less configuration to be functional out of the box. For very small businesses without dedicated IT support, this matters. There's less to configure, fewer security settings to worry about at the basic tier, and the admin console is more intuitive for non-technical administrators.
Price at entry level
Google Workspace Business Starter is roughly half the cost of Microsoft 365 Business Standard. For businesses where staff only need web-based email and basic document collaboration, this price difference is meaningful — especially at 20+ users.
Search
Google's search across Gmail and Drive is unsurprisingly excellent. Finding an email from three years ago or a document you half-remember is genuinely easier in Google Workspace than in Outlook and OneDrive.
Which Industries Typically Choose Each Platform
| Microsoft 365 — Common Fits | Google Workspace — Common Fits |
|---|---|
| Legal and professional services | Startups and tech companies |
| Accounting and finance | Creative agencies and media |
| Healthcare and allied health | Education |
| Construction and engineering | Companies already in the Google ecosystem |
| Government-adjacent businesses | Businesses with heavy real-time collaboration |
| Businesses with compliance obligations | Very small teams (1–10 staff) |
What About Migrating Between Them?
Both directions are achievable with the right tooling and planning. The most common migration we handle is Google Workspace to Microsoft 365 — typically because a business has grown, taken on enterprise clients with compliance requirements, or simply needs the full desktop Office suite.
Key things to know about migrations:
- Email migration is straightforward in both directions. Google and Microsoft both have official migration tools and the process is well understood.
- Drive to OneDrive / SharePoint is more nuanced. Folder structure, sharing permissions, and file naming conventions all need to be mapped before the migration starts.
- Calendar and contacts migrate cleanly in most cases, but shared calendars and resource rooms require careful handling.
- Plan for a 1–2 week transition for most SMBs. Rushing a migration creates email downtime and frustrated staff.
Our recommendation for most Sydney businesses: If you are starting fresh and your team is comfortable working in a browser, Google Workspace Business Standard is a cost-effective, capable platform. If your team relies heavily on desktop Office apps, you handle sensitive client data, or you have more than 15 staff, Microsoft 365 Business Standard or Premium is the better long-term choice.
The Honest Answer
For the majority of Sydney SMBs we work with, we recommend Microsoft 365. The desktop Office apps alone justify the price difference for most office-based teams, and the security capabilities in Business Premium are increasingly important as cyber threats targeting SMBs grow.
But “most businesses” is not “every business.” If your team lives in a browser, you have a tight budget, and you don't have complex security or compliance requirements, Google Workspace is a perfectly good choice — and we'll tell you that honestly.
What we won't do is recommend one platform without understanding your specific situation. If you're evaluating both and want an independent view, get in touch — this is exactly the kind of question we answer in a free strategy session.