Microsoft 365 vs Google Workspace: Which Is Right for Your Australian Business?
Published: 10 March 2026 | Reading time: 12 minutes | By: AyeTech
Key Takeaways
- Best overall for most Australian businesses: Microsoft 365 — deeper Office apps, stronger security, better compliance tooling, and Australian data centres in Sydney and Melbourne
- Best for startups and simple collaboration: Google Workspace — easier to learn, excellent real-time collaboration, and lower entry price at the Standard tier
- Pricing (AUD, ex-GST): Microsoft 365 starts at $9.00/user/month (Business Basic); Google Workspace starts at $10.80/user/month (Business Starter)
- Security edge: Microsoft 365 Business Premium includes advanced threat protection, Intune device management, and better ACSC Essential Eight alignment
- Migration: Moving between platforms typically takes 1–2 weeks for a 20-user business with an experienced MSP
Quick Verdict
Microsoft 365 is the right choice for most Australian businesses. It offers superior desktop applications, more granular admin controls, stronger built-in security at higher tiers, and proven Australian data residency. Google Workspace is the better pick if your team values simplicity, works primarily in a browser, and does not rely on advanced Excel or desktop Office functionality.
Neither platform is universally "better" — the right choice depends on your team's workflow, industry, compliance requirements, and existing technology stack.
Table of Contents
Pricing Comparison in AUD (2026)
Microsoft 365 is cheaper at the entry level; Google Workspace is more competitive at the mid-tier. Below is a side-by-side comparison of all business plans. Prices are per user, per month, billed annually, and exclude GST.
Microsoft 365 Business Plans
| Plan | Price (AUD/user/mo) | Office Apps | Email Storage | Cloud Storage |
|---|---|---|---|---|
| Business Basic | $9.00 | Web & mobile only | 50 GB | 1 TB OneDrive |
| Business Standard | $18.90 | Desktop, web & mobile | 50 GB | 1 TB OneDrive |
| Business Premium | $33.00 | Desktop, web & mobile | 50 GB | 1 TB OneDrive |
| E3 (Enterprise) | $54.90 | Desktop, web & mobile | 100 GB | 5 TB OneDrive |
| E5 (Enterprise) | $82.50 | Desktop, web & mobile | 100 GB | 5 TB OneDrive |
Google Workspace Plans
| Plan | Price (AUD/user/mo) | Office Apps | Email Storage | Cloud Storage |
|---|---|---|---|---|
| Business Starter | $10.80 | Web & mobile only | Pooled (30 GB/user) | 30 GB/user (pooled) |
| Business Standard | $16.80 | Web & mobile only | Pooled (2 TB/user) | 2 TB/user (pooled) |
| Business Plus | $27.00 | Web & mobile only | Pooled (5 TB/user) | 5 TB/user (pooled) |
| Enterprise | Custom pricing | Web & mobile only | Unlimited (with 5+ users) | 5 TB/user (expandable) |
Head-to-Head Pricing at Comparable Tiers
| Tier | Microsoft 365 | Google Workspace | Difference |
|---|---|---|---|
| Entry | Business Basic — $9.00 | Business Starter — $10.80 | M365 saves $1.80/user/mo |
| Mid | Business Standard — $18.90 | Business Standard — $16.80 | Google saves $2.10/user/mo |
| Premium | Business Premium — $33.00 | Business Plus — $27.00 | Google saves $6.00/user/mo |
Cost analysis: For a 20-user Australian business on mid-tier plans billed annually, Microsoft 365 Business Standard costs $4,536/year while Google Workspace Business Standard costs $4,032/year — a difference of $504/year. However, Microsoft 365 Business Standard includes full desktop Office apps (Word, Excel, PowerPoint, Outlook), which Google Workspace does not offer at any tier.
Feature-by-Feature Comparison
Microsoft 365 wins on desktop applications and advanced features; Google Workspace wins on real-time collaboration and simplicity.
| Feature | Microsoft 365 (Outlook) | Google Workspace (Gmail) |
|---|---|---|
| Desktop app | Full Outlook desktop app Winner | No desktop app (web only) |
| Mailbox size | 50–100 GB | Pooled storage (30 GB–5 TB/user) |
| Shared mailboxes | Included free Winner | Requires Collaborative Inbox (limited) or additional licence |
| Calendar | Outlook Calendar (room booking, scheduling assistant) | Google Calendar (strong integration, appointment slots) |
| Search | Good | Excellent Winner |
| Focused Inbox / Priority | Focused Inbox | Priority Inbox, categories, nudges |
Office & Productivity Apps
| Feature | Microsoft 365 | Google Workspace |
|---|---|---|
| Word processing | Word (desktop + web) Winner | Google Docs (web only) |
| Spreadsheets | Excel (desktop + web) Winner | Google Sheets (web only) |
| Presentations | PowerPoint (desktop + web) | Google Slides (web only) |
| Real-time co-authoring | Supported in web & desktop | Native and seamless Winner |
| Offline access | Full desktop apps work offline Winner | Chrome extension for limited offline editing |
| Advanced features (macros, pivot tables, VBA) | Full support Winner | Limited; Apps Script as alternative |
| AI assistant | Microsoft Copilot (add-on: $45 AUD/user/mo) | Gemini (included in some plans) |
Collaboration & Communication
| Feature | Microsoft 365 | Google Workspace |
|---|---|---|
| Video conferencing | Microsoft Teams (up to 300 participants) | Google Meet (up to 500 on Business Plus) |
| Team chat | Microsoft Teams Winner | Google Chat |
| File sharing | OneDrive + SharePoint | Google Drive Winner |
| Intranet / wiki | SharePoint Winner | Google Sites (basic) |
| Project management | Planner, To Do, Project | Google Tasks, third-party needed |
| Whiteboarding | Microsoft Whiteboard | Google Jamboard (discontinued), Figjam integration |
Cloud Storage
| Feature | Microsoft 365 | Google Workspace |
|---|---|---|
| Personal storage | 1–5 TB OneDrive | 30 GB–5 TB per user (pooled) |
| Team storage | SharePoint (1 TB + 10 GB/user) | Shared drives (storage from pool) |
| Desktop sync | OneDrive sync client Winner | Google Drive for Desktop |
| File versioning | Yes (up to 500 versions) | Yes (30 days, or 100 versions) |
Best for Different Business Types
Choose Microsoft 365 if your business depends on desktop Office apps, advanced security, or operates in a regulated industry. Choose Google Workspace if you prioritise ease of use, real-time collaboration, and work primarily in a web browser.
Choose Microsoft 365
- Accounting and financial services firms
- Law firms and legal practices
- Healthcare and medical practices
- Government contractors
- Businesses reliant on Excel, macros, or VBA
- Organisations needing advanced compliance (APRA, ACSC Essential Eight)
- Companies with 50+ employees needing granular admin control
- Teams already using Microsoft-centric workflows
Choose Google Workspace
- Startups and early-stage businesses
- Creative agencies and design studios
- Education and training organisations
- Remote-first teams that work in browsers
- Businesses with mostly non-technical staff
- Companies using Google-centric tools (Android, Chrome, Chromebooks)
- Small teams (<20) prioritising simplicity
- Businesses with minimal Excel or desktop app needs
Industry-Specific Recommendations for Australia
| Industry | Recommended Platform | Reason |
|---|---|---|
| Accounting / Finance | Microsoft 365 | Excel is industry standard; APRA compliance; Xero/MYOB integration |
| Legal | Microsoft 365 | Document formatting, track changes, compliance, data retention |
| Healthcare | Microsoft 365 | RACGP compliance, Intune device management, Azure AD |
| Construction / Trades | Microsoft 365 | SharePoint for project docs, Teams for field communication |
| Creative / Marketing | Google Workspace | Real-time collaboration, Google Ads integration, simplicity |
| Tech Startups | Google Workspace | GCP integration, developer tooling, lower admin overhead |
| Education | Google Workspace | Google Classroom, Chromebook ecosystem, free Education tier |
| Real Estate | Microsoft 365 | Outlook for client management, SharePoint for listings, CRM integrations |
Security & Compliance Comparison
Microsoft 365 provides significantly stronger security and compliance tooling, particularly at the Business Premium and E3/E5 tiers. This is a critical consideration for Australian businesses that must comply with the Australian Privacy Act, Notifiable Data Breaches scheme, and ACSC Essential Eight.
| Security Feature | Microsoft 365 | Google Workspace |
|---|---|---|
| Multi-factor authentication (MFA) | Included (all plans) | Included (all plans) |
| Advanced threat protection | Defender for Office 365 (Business Premium+) Winner | Basic protection; advanced requires third-party |
| Device management (MDM/MAM) | Microsoft Intune (Business Premium+) Winner | Basic MDM; advanced requires third-party |
| Data Loss Prevention (DLP) | Built-in DLP (E3+) Winner | DLP available (Business Standard+) |
| Conditional access policies | Azure AD Conditional Access (Business Premium+) Winner | Context-Aware Access (Business Standard+) |
| Email encryption | Microsoft Purview Message Encryption Winner | S/MIME (Business Plus+), TLS default |
| eDiscovery | Built-in (E3+) Winner | Google Vault (Business Plus+) |
| SIEM integration | Microsoft Sentinel, Defender XDR Winner | Google Cloud Security Command Center |
| Australian data residency | Sydney & Melbourne data centres Winner | Data region policies (Business Standard+); Sydney region available |
ACSC Essential Eight Alignment
The Australian Cyber Security Centre's Essential Eight framework is increasingly expected for businesses working with government or in regulated sectors. Microsoft 365 provides native tooling for more Essential Eight strategies:
- Application control: Microsoft Defender for Endpoint + Intune (M365 Business Premium) vs third-party needed on Google Workspace
- Patch applications: Microsoft Intune handles patch management natively; Google requires Chrome Enterprise or third-party tools
- Configure Microsoft Office macro settings: Group Policy / Intune covers this directly; not applicable to Google Workspace (no macros)
- User application hardening: Defender for Endpoint provides browser and app hardening; Google relies on Chrome-level security
- Restrict admin privileges: Both platforms support role-based access; Azure AD offers more granular roles
- Multi-factor authentication: Both platforms support MFA across all plans
- Regular backups: Neither platform provides comprehensive backup natively — third-party backup is recommended for both
Australian Compliance Summary
For Australian businesses in regulated industries, Microsoft 365 Business Premium ($33.00 AUD/user/month) is the most cost-effective way to get enterprise-grade security. It includes Intune (device management), Defender for Office 365 (threat protection), Azure AD Premium P1 (conditional access), and Azure Information Protection (data classification) — features that would require third-party add-ons with Google Workspace.
Integration Ecosystem
Microsoft 365 has a larger enterprise integration ecosystem; Google Workspace integrates more naturally with web-native and Google Cloud tools.
Microsoft 365 Integration Strengths
- Power Platform: Power Automate, Power BI, Power Apps for custom business automation
- Azure Active Directory: Single sign-on (SSO) with thousands of enterprise applications
- Dynamics 365: Tight CRM and ERP integration
- Line-of-business apps: Most enterprise software (SAP, Salesforce, ServiceNow) has deeper M365 integration
- Australian accounting: Xero, MYOB, and Reckon offer strong Microsoft integrations for Excel-based reporting
- Teams app ecosystem: 1,400+ third-party apps available in Teams
Google Workspace Integration Strengths
- Google Cloud Platform (GCP): Native integration for businesses using GCP infrastructure
- Google Ads / Analytics: Seamless marketing platform integration
- Chrome Enterprise: Best-in-class browser management and Chromebook support
- AppSheet: No-code app builder included in some plans
- Third-party SaaS: Strong integrations with Slack, Asana, Notion, and modern SaaS tools
- Google Marketplace: Growing ecosystem of workspace add-ons
Migration Considerations
Migrating between platforms is straightforward with the right tools and planning, but should not be underestimated. A poorly planned migration can result in lost emails, broken workflows, and days of lost productivity.
Migrating to Microsoft 365
- Microsoft provides free migration tools for email, contacts, calendars, and files
- Google Docs, Sheets, and Slides can be automatically converted to Office formats
- Some formatting may change during conversion (especially complex Sheets → Excel)
- Shared drive permissions need to be remapped to SharePoint/OneDrive
- Google Forms, Google Sites, and other Google-native tools will need replacements
Migrating to Google Workspace
- Google provides a data migration service for email, contacts, and calendars
- Office files can be used natively in Google Drive or converted to Google formats
- VBA macros, complex Excel workbooks, and Access databases will not migrate
- SharePoint sites and workflows need to be rebuilt in Google Sites or third-party tools
- Outlook rules and custom folder structures need manual recreation
Typical Migration Timeline (20-User Business)
| Phase | Duration | Tasks |
|---|---|---|
| Planning & assessment | 2–3 days | Audit current environment, plan user mapping, identify risks |
| Setup & configuration | 1–2 days | Provision licences, configure DNS, set security policies |
| Data migration | 2–5 days | Migrate email, files, calendars (often runs over a weekend) |
| DNS cutover | 1 day | Switch MX records, verify mail flow |
| User training & support | 2–3 days | Train staff on new platform, resolve individual issues |
Tip for Australian businesses: Schedule your migration over a long weekend or during a quieter business period. An experienced MSP can handle the entire process with minimal disruption to your team.
Admin & Management Comparison
Microsoft 365 offers more granular administrative control; Google Workspace is easier to administer for smaller teams.
| Admin Feature | Microsoft 365 | Google Workspace |
|---|---|---|
| Admin console | Microsoft 365 Admin Center (powerful but complex) | Google Admin Console (clean and simple) Winner |
| User provisioning | Azure AD, SCIM, PowerShell | Google Admin, SCIM, CLI tools |
| Role-based access control | 60+ admin roles Winner | ~10 predefined roles, custom roles available |
| Group management | Microsoft 365 Groups, distribution lists, security groups, dynamic groups Winner | Google Groups |
| Reporting & analytics | Microsoft 365 Usage Reports, Power BI integration Winner | Google Workspace Reports, BigQuery export |
| Scripting & automation | PowerShell, Microsoft Graph API, Power Automate | Apps Script, Google Workspace API |
| Learning curve for admins | Steeper (many consoles and portals) | Gentler (single admin console) Winner |
For businesses without dedicated IT staff, Google Workspace is easier to self-manage. For businesses with an MSP (like AyeTech) handling administration, Microsoft 365's deeper controls allow for more precise configuration and security policy enforcement.
Need Help Choosing or Migrating?
AyeTech helps Australian businesses select, deploy, and manage Microsoft 365 and Google Workspace. Get a consultation to find the right platform for your team.
Book a ConsultationFrequently Asked Questions
Microsoft 365 is the better choice for most Australian businesses, especially those that rely on desktop Office applications, need advanced security and compliance features, or work in regulated industries like finance, legal, or healthcare. Google Workspace is better suited for startups, creative teams, and businesses that prioritise real-time collaboration and simplicity. Microsoft 365 Business Basic starts at $9.00 AUD/user/month, while Google Workspace Business Starter begins at $10.80 AUD/user/month.
Microsoft 365 pricing in Australia (per user, per month, billed annually, ex-GST): Business Basic at $9.00, Business Standard at $18.90, Business Premium at $33.00, E3 at $54.90, and E5 at $82.50. The most popular plan for small businesses is Business Standard at $18.90/user/month, which includes full desktop Office applications.
Google Workspace pricing in Australia (per user, per month, billed annually, ex-GST): Business Starter at $10.80, Business Standard at $16.80, Business Plus at $27.00, and Enterprise at custom pricing. The Business Standard plan at $16.80/user/month is the most popular mid-tier option with 2 TB pooled storage per user.
Yes, you can migrate between platforms. Microsoft provides free migration tools to move from Google Workspace to Microsoft 365, including email, contacts, calendars, and files. Migrating from M365 to Google Workspace is also possible using Google's data migration service. A typical migration for a 20-user business takes 1–2 weeks. An MSP like AyeTech can handle the entire migration with minimal disruption to your team.
Microsoft 365 offers more comprehensive built-in security features, especially at the Business Premium ($33.00 AUD/user/month) and E3/E5 tiers. It includes Microsoft Defender for Office 365, Intune device management, Azure Information Protection, and conditional access policies. Microsoft 365 also has dedicated Australian data centres in Sydney and Melbourne, and offers better support for ACSC Essential Eight compliance. Google Workspace provides solid baseline security but typically requires third-party tools to match Microsoft's advanced threat protection and device management capabilities.
Microsoft 365 has data centres in Sydney and Melbourne, offering Australian data residency for core services including Exchange Online, SharePoint Online, and OneDrive for Business. Google Workspace stores data in Google's global network and offers data region policies for Business Standard and above, allowing you to set data at rest to be stored in Australia (Sydney region). For strict Australian data sovereignty requirements, Microsoft 365 currently provides more granular control over data location.
Both platforms integrate with Australian accounting software like Xero and MYOB. However, Microsoft 365 offers deeper integration through Power Automate workflows, Power BI reporting dashboards, and Excel-based analysis that most Australian accountants and bookkeepers are already trained on. If your business relies heavily on spreadsheets and financial modelling, Microsoft 365 with full desktop Excel is the stronger choice.
About AyeTech
AyeTech is a Sydney-based managed service provider (MSP) helping Australian businesses select, deploy, and manage cloud productivity platforms including Microsoft 365 and Google Workspace. We provide end-to-end migration services, ongoing administration, security configuration, and user training.
Contact Information:
- Phone: 02 9188 8000
- Email: [email protected]
- Address: Suite 203, Level 8, 99 Walker St, North Sydney, NSW 2060
- Service Areas: Sydney, Melbourne, Brisbane, Perth, Adelaide
Services: Managed IT Services | Cybersecurity | IT Consulting