The short answer
Microsoft 365 and Google Workspace both give you professional email on your own domain, shared documents, video calls and cloud storage, and both are solid, mainstream choices for a UK small business. Whichever you choose, it's worth reading 10 admin tasks small businesses can automate this month, since a lot of email and document automation works equally well on either platform. Microsoft 365 tends to suit businesses that want familiar Word, Excel and Outlook, deeper desktop app features, and tighter control over devices and files. Google Workspace tends to suit businesses that live mostly in a browser, want simpler real-time collaboration, and prefer a cleaner, less feature-heavy interface. Neither is "better" outright; the right choice is usually whichever one your team, your accountant, and the software you already use are most comfortable with.
What you get with each
Microsoft 365
- Outlook for email and calendar, with the desktop apps most UK businesses already know
- Word, Excel and PowerPoint, both desktop and browser versions
- Teams for chat and video calls
- SharePoint and OneDrive for file storage and sharing
- Stronger device and security management features as you move up the plans, useful once you have several staff and devices to look after
Google Workspace
- Gmail for email and Google Calendar
- Google Docs, Sheets and Slides, built for real-time collaboration in the browser
- Google Meet for video calls
- Google Drive for file storage and sharing
- A simpler, more streamlined interface that many people find quicker to pick up
Comparing them side by side
| Microsoft 365 | Google Workspace | |
|---|---|---|
| Email client | Outlook (desktop and web) | Gmail (web, with desktop/mobile apps) |
| Documents | Word, Excel, PowerPoint | Docs, Sheets, Slides |
| Best known for | Familiar desktop software, deep formatting and features | Simple, fast, real-time collaboration |
| Video calls | Teams | Meet |
| File storage | OneDrive and SharePoint | Google Drive |
| Offline use | Strong, especially with desktop apps | Possible but more limited |
| Learning curve | Lower if your team already knows Word and Excel | Lower if your team already uses personal Gmail or Docs |
| Works well with | Accounting and trade software built around Office formats | Businesses that are already Google-first, or very browser-based |
| Admin and security controls | Extensive, especially on business-grade plans | Solid, slightly simpler to administer for a small team |
How to actually decide
- What does your team already use personally or at a previous job? Familiarity genuinely speeds up adoption and reduces support calls in the first few months.
- Does your other software expect Office file formats? Some industry-specific software (certain accounting add-ins, legal and property tools, trade-specific packages) is built around Word and Excel and works more smoothly with Microsoft 365, though both suites can open and save in either format.
- How much do you rely on desktop, offline work? If your team often works without reliable internet, Microsoft 365's desktop apps generally offer a more complete offline experience.
- How many people are collaborating on the same document at once? Google Workspace's browser-first design handles simultaneous editing very smoothly, which some teams prefer.
- Do you need detailed device and security management? As you add staff and devices, Microsoft 365's business-grade plans offer detailed control over company devices, though Google Workspace has equivalent tools for its own ecosystem.
If security and backups are the main driver behind this decision, our cyber security checklist for small businesses is worth reading alongside this guide, since a lot of good security practice sits on top of whichever platform you choose rather than being decided by it.
Cost and plans
Both providers offer tiered plans, from a basic email and office apps tier up to plans with more storage, device management and advanced security. Pricing and what's included in each tier change fairly often on both platforms, so check current pricing directly with Microsoft and Google before budgeting, rather than relying on a figure you've seen elsewhere. As a rough principle, the entry-level plans from either provider cover most small businesses' day-to-day needs; the higher tiers earn their cost once you have more staff, more devices to manage, or specific compliance needs like Cyber Essentials.
Migrating between them
Moving from one to the other, or setting either up for the first time, usually involves:
- Setting up your domain's email records correctly (MX, SPF, DKIM and similar) so email delivers reliably and doesn't get marked as spam
- Migrating existing email, calendar entries and contacts across
- Moving files from wherever they currently live (a shared drive, personal accounts, or the other platform) into the new one
- Setting permissions so the right people have access to the right files, and nothing more
- A short training session so the team knows where things have moved to
This is fiddly to do well, particularly the email records, and it's where most of the problems happen if it's rushed. If your business runs on scattered personal email accounts today, our guide on why your business needs email on its own domain covers the step before this one.
What to watch out for
- Don't let this become a bigger decision than it needs to be. Both platforms are mature, reliable and used by millions of businesses; there's rarely a wrong answer, only a better fit.
- Check your existing software's compatibility first, especially anything industry-specific, before assuming either platform works perfectly with it.
- Migrate email records carefully. A mistake in your domain's email settings during a switch can mean missed emails for days, which is one of the most common and avoidable problems.
- Set up multi-factor authentication from day one, whichever platform you choose; it's one of the single most effective security steps available and takes minutes to turn on.
- Plan who owns admin access. One named person (not a shared personal login) should control the business account, with a backup administrator in case they're unavailable.
If you'd rather not do this yourself
We'll help you choose between Microsoft 365 and Google Workspace based on how your business actually works, then set it up or migrate you across properly, including email records, permissions and training. Have a look at our IT support and security service, or tell us what you're working with now for a free 30-minute call.
Frequently asked questions
Which is cheaper, Microsoft 365 or Google Workspace?
Both offer broadly comparable entry-level pricing for a small team, and both change their plans and pricing from time to time. Check current pricing directly with each provider rather than relying on a figure that may be out of date, and compare like-for-like plans rather than headline prices alone.
Can I switch from one to the other later without starting again?
Yes, though it takes proper planning, particularly around email continuity and file migration. It's more disruptive than choosing well the first time, so it's worth taking the decision seriously upfront, but switching later is not unusual and is manageable with the right approach.
Which one works better with Xero or QuickBooks?
Both accounting platforms work well with either Microsoft 365 or Google Workspace; neither requires a specific one. The more relevant compatibility question is usually any industry-specific software you use, which can lean towards Office file formats.
Do I need the most expensive plan to be secure?
No. Sensible security, like multi-factor authentication, proper permissions and regular backups, is available on entry-level business plans from both providers. Higher tiers add more detailed device management and advanced threat protection, which matter more as you grow, not a baseline requirement from day one.
Can I mix and match, like Gmail with Word documents?
It's technically possible but adds friction, since you lose the tight integration each suite has between its own email, calendar, files and video calls. Most businesses get a smoother experience sticking with one platform's full set of tools.
How long does migrating to a new platform take?
For a small business with a handful of staff, a well-planned migration typically takes one to two weeks, including setting up email records correctly, moving files and data across, and training the team. Rushed migrations, particularly around email records, are where most problems happen.