Microsoft 365 vs Google Workspace - team collaboration

Microsoft 365 vs Google Workspace: Which Is Better for SMBs in 2026?

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Microsoft 365 vs Google Workspace is one of the most common questions SMBs face when moving their business to the cloud. Both are excellent productivity platforms — but they suit different types of businesses, workflows, and budgets. Here’s an honest, practical comparison to help you decide.

Microsoft 365: The Case For

Microsoft 365 is the dominant choice for UK SMBs, and for good reason. It includes the full suite of Office applications — Word, Excel, PowerPoint, Outlook — in their most capable form, along with Exchange Online for email, Teams for communication and collaboration, SharePoint for document management, and OneDrive for file storage.

If your business already uses any Microsoft products, or if your clients and partners predominantly use Office file formats, Microsoft 365 is almost certainly the better fit. It also offers deeper integration with Windows devices and a more mature enterprise security and compliance framework — important considerations for regulated industries.

Google Workspace: The Case For

Google Workspace (formerly G Suite) is browser-first, which makes it genuinely device-agnostic. Gmail, Google Docs, Sheets, Slides, Drive, and Meet are all strong products that work seamlessly across any device. For businesses that work heavily in the browser, have remote or international teams, or are starting from scratch without existing Microsoft dependencies, Google Workspace is a compelling option.

It’s also generally simpler to administer, with a cleaner interface and faster onboarding for non-technical users.

Key Differences at a Glance

  • Office applications — Microsoft 365 wins on desktop app power; Google Workspace wins on simplicity and real-time collaboration
  • Email — Outlook vs Gmail: both excellent, personal preference often decides this
  • Storage — Both offer generous storage; Microsoft 365 Business plans include 1TB OneDrive per user
  • Security and compliance — Microsoft 365 has a more mature compliance toolkit, better suited to regulated sectors
  • Cost — Comparable at similar tiers; Microsoft 365 Business Basic starts from around £4.90/user/month
  • Integration — Microsoft 365 integrates better with Windows and most third-party business applications

Which Should You Choose?

For most UK SMBs, Microsoft 365 is the stronger choice — particularly if you use Windows devices, need robust compliance tools, or work frequently with Office file formats. Google Workspace is the better option if your team is entirely browser-based, highly distributed, or if simplicity and ease of administration are the priority.

At Arrival IT Solutions, we help SMBs choose, deploy, and manage both platforms. Get in touch and we’ll help you make the right call for your business.