Google Workspace and Microsoft 365 are the two suites almost every small and mid-size business ends up choosing between for email, documents, storage, and meetings. Both have reshaped their lineups around built-in AI in 2026 – but they’ve gone about it very differently, and that difference shows up directly in the price you pay per seat. Here’s how the current plans, storage, and AI inclusion actually compare, based on each vendor’s own pricing pages.
At a Glance
| Category | Google Workspace | Microsoft 365 Business |
|---|---|---|
| Entry price (annual commitment) | $7/user/mo (Business Starter) | $7.00/user/mo (Business Basic, with Teams) |
| Entry-tier storage | 30 GB pooled per user | 1 TB per user + 100 GB mailbox |
| Built-in AI assistant | Gemini, included on every tier (limited on Starter) | Copilot, bundled into specific “with Copilot” SKUs at a higher price |
| Top business tier | Business Plus – $22/user/mo, 5 TB | Business Premium with Copilot – $32/user/mo, 1 TB + 1.5 TB archive mailbox |
| Best for | Teams that want AI and generous storage bundled in cheaply | Teams already standardized on Windows, Outlook, and Microsoft security tooling |
Short Verdict
If your team is AI-curious and storage-hungry on a budget, Google Workspace gives you more for less – Gemini is included at every tier, and even the mid-tier Business Standard plan jumps to 2 TB of pooled storage per user. Microsoft 365 is the better fit if you’re already locked into Outlook, Teams, and Windows device management, and you’re willing to pay a premium to bundle Copilot in – but Copilot’s pricing is layered and easy to misread, so budget carefully before you commit.
What It Is
Google Workspace bundles Gmail, Calendar, Drive, Docs/Sheets/Slides, Meet, and Chat under one admin console, with Gemini woven into the apps rather than sold as a separate product. Microsoft 365 bundles Outlook, OneDrive, Word/Excel/PowerPoint, Teams, and Exchange-hosted email, with Copilot available either bundled into specific SKUs or as an add-on for other tiers. Both suites pool storage per user, both offer admin and security controls scaled to plan tier, and both are sold on monthly or annual-commitment billing (annual commitment is cheaper per seat in both cases).
Pricing Breakdown
| Plan | Price per user/mo (annual commitment) | Price per user/mo (flexible/monthly) | Storage |
|---|---|---|---|
| Google Workspace Business Starter | $7.00 | $8.40 | 30 GB pooled |
| Google Workspace Business Standard | $14.00 | $16.80 | 2 TB pooled, full Gemini |
| Google Workspace Business Plus | $22.00 | $26.40 | 5 TB pooled, full Gemini |
| Google Workspace Enterprise | Contact sales | Contact sales | 5 TB+, expandable |
| Microsoft 365 Business Basic | $7.00 (with Teams) / $5.40 (no Teams) | Higher month-to-month rate applies | 1 TB + 100 GB mailbox, 50 GB archive |
| Microsoft 365 Business Standard with Copilot | $23.50 (with Teams) / $20.30 (no Teams) | Higher month-to-month rate applies | 1 TB + 100 GB mailbox |
| Microsoft 365 Business Premium with Copilot | $32.00 (with Teams) / $28.80 (no Teams) | Higher month-to-month rate applies | 1 TB + 1.5 TB archive mailbox |
One pricing quirk worth flagging: Microsoft currently runs a promotion dropping its standalone Copilot add-on from $21 to $18 per user/month between July and December 2026 for existing eligible customers on other plans – that’s separate from the “with Copilot” bundled SKUs above, and it’s worth confirming which path applies before you buy, since Microsoft’s packaging around Copilot has changed more than once in the last two years.
Pros
- Google Workspace: Gemini is included rather than a paid add-on from Business Standard up; storage jumps are generous (2 TB, then 5 TB); simpler, flatter pricing with no separate AI SKU to track.
- Microsoft 365: Deeper enterprise security and compliance tooling even at the Business tier; tightest fit for organizations already standardized on Windows, Active Directory/Entra ID, and Outlook; Teams is a stronger fit for large, structured meetings and webinars.
Cons
- Google Workspace: Business Starter’s 30 GB pooled storage is thin for teams that share large files; fewer enterprise-grade compliance add-ons than Microsoft at equivalent price points.
- Microsoft 365: Copilot pricing and packaging is genuinely confusing – bundled-in-SKU vs. stand-alone add-on vs. promotional pricing can all apply differently depending on your existing plan; entry-tier Business Basic lacks the desktop versions of Word/Excel/PowerPoint (web and mobile only).
Who It’s a Good Fit For / Who Should Look Elsewhere
Good fit for Google Workspace: startups and small teams that want AI assistance included without an extra line item, teams that collaborate primarily in-browser, and anyone prioritizing cheap, generous storage. Good fit for Microsoft 365: businesses already running Windows/Active Directory, teams that need desktop Office apps and deep Exchange/Outlook features, and organizations with compliance requirements Microsoft’s security stack already satisfies. Look elsewhere if: you need only a handful of the apps in either bundle – in that case, standalone tools (a dedicated video app, a dedicated file-sharing service) can cost less than a full suite seat.
Bottom Line
Dollar for dollar, Google Workspace currently bundles more storage and AI into its stated price than Microsoft 365 does – but Microsoft’s tooling is harder to replace once an organization has built its identity and security stack around it. For a new team choosing from scratch with no prior lock-in, Google Workspace’s simpler, AI-inclusive pricing is the easier sell. For a team already standardized on Windows and Outlook, Microsoft 365 Business Premium is still the more defensible choice despite the higher price per seat.
FAQ
Is Gemini really included free with Google Workspace?
Yes, on Business Standard and above Gemini is fully included in the subscription price with no separate add-on; Business Starter gets limited Gemini access.
Is Copilot included in Microsoft 365 Business plans?
Only in the specific “with Copilot” SKUs of Business Standard and Business Premium shown above. Other Microsoft 365 plans require Copilot as a separate paid add-on.
Which suite gives more storage per user?
Google Workspace, once you’re past the entry tier – Business Standard jumps to 2 TB pooled per user versus Microsoft 365’s 1 TB across its Business plans.
Can a company run both suites at once?
Yes, and some do during migrations or for specific teams, but running both long-term doubles licensing cost and complicates admin and identity management, so most businesses standardize on one.
Which is cheaper for a 10-person team?
On entry tiers they’re close ($700/mo for Google Business Starter vs. $700/mo for Microsoft Business Basic with Teams, both annual commitment). The gap widens at the mid-tier, where Google Business Standard ($1,400/mo) undercuts Microsoft Business Standard with Copilot ($2,350/mo) because Microsoft’s mid-tier price already has Copilot built in.