Google Workspace vs Microsoft 365 for a Growing Australian Business
Most businesses end up on one of these two platforms not because they made a deliberate decision, but because of what their first IT person set up or what their accountant was already using. If you are reconsidering that choice — or making it for the first time as you grow — this is an honest comparison of where each platform is stronger and where it falls short.
They are more similar than the marketing suggests
Both Google Workspace and Microsoft 365 give you email, calendar, video conferencing, document editing, file storage, and team collaboration. For a small business with simple requirements, either works. The differences that matter emerge when you look at security controls, compliance requirements, desktop application needs, and the depth of the ecosystem around each platform.
The decision is rarely purely technical. It often comes down to what your clients and partners use, what your industry expects, and what level of control you need over devices and data as the business grows.
Side-by-side comparison
| Area | Google Workspace | Microsoft 365 |
|---|---|---|
| Gmail (web-first) | Outlook (desktop + web) | |
| Documents | Google Docs (web-only) | Word, Excel, PowerPoint (desktop + web) |
| File storage | Google Drive (15 GB – 5 TB+) | OneDrive (1 TB per user) |
| Video conferencing | Google Meet | Microsoft Teams |
| Team collaboration | Google Chat + Spaces | Microsoft Teams |
| Device management | Google Endpoint Management | Microsoft Intune |
| Identity and access | Google Identity (limited CA) | Entra ID + Conditional Access (P1+) |
| Advanced threat protection | Limited in standard plans | Defender for Office 365 (Business Premium) |
| Compliance tools | Google Vault | Microsoft Purview |
| Desktop Office apps | — | ✓ (Business Standard+) |
| Offline document editing | Limited | ✓ (full desktop apps) |
| Power Platform / automation | Google AppSheet (separate) | Power Automate + Power Apps (included) |
| AI assistant | Gemini for Workspace | Microsoft Copilot |
| ERP/CRM integration | Limited native | Deep (Dynamics 365, SAP, Salesforce) |
Where Google Workspace is genuinely stronger
- 01
Simplicity and onboarding speed
Google Workspace is faster to set up and easier for non-technical staff to use from day one. There is no desktop application to install, no configuration complexity, and the Gmail interface is something most people already know. For very small businesses with low IT overhead, this matters.
- 02
Real-time collaboration on documents
Google Docs pioneered simultaneous multi-user editing and it remains smoother than Microsoft's co-authoring experience in Word and Excel. If your team regularly edits the same documents together in real time, Google's approach is more reliable.
- 03
Price at the lower tiers
Google Workspace Business Starter is around $9 per user per month. Microsoft 365 Business Basic is comparable. Google's standard tier (Business Standard, around $18/user) includes more storage than the equivalent Microsoft plan. For very cost-sensitive environments, Google can be slightly cheaper.
- 04
Cross-platform consistency
Google Workspace works identically on every browser and operating system. There is no 'it works better on Windows' — the experience is the same on macOS, Linux, Chromebook, and any mobile device. For mixed-device environments with no desire to manage endpoints, this is an advantage.
Where Microsoft 365 is stronger for a growing business
- 01
Desktop Office applications
Word, Excel, and PowerPoint remain the standard in Australian professional services, finance, legal, and government. If your clients send you complex spreadsheets, formatted Word documents, or PowerPoint presentations, working in the native application matters. Google's web-based equivalents handle simple documents well but have real limitations with complex formatting, macros, and large file sizes.
- 02
Security and device management depth
Microsoft Intune, Entra ID, Conditional Access, and Microsoft Defender for Business give you a level of security control that Google's endpoint management does not match at an equivalent price point. For any business that needs to manage devices, enforce compliance, or meet cyber insurance requirements, Microsoft's security stack is materially stronger.
- 03
Teams as a true communications hub
Microsoft Teams has become the default collaboration platform in Australian enterprise and government. If your clients, partners, or regulators use Teams, being on Microsoft 365 removes friction. External Teams federation and guest access work seamlessly in ways that cross-platform video calls do not.
- 04
Power Platform and automation
Power Automate, Power Apps and Power BI are included in Microsoft 365 licences and provide a complete automation and application development platform without additional software. Google's equivalent (AppSheet) is a separate product with separate pricing. For businesses looking to automate processes and build internal tools without custom development, Microsoft's included tools are a significant advantage.
- 05
Compliance and data governance
Microsoft Purview provides data classification, retention policies, data loss prevention, and audit capabilities that are significantly more mature than Google Vault. For regulated industries — financial services, healthcare, legal, government — the compliance toolset in Microsoft 365 Business Premium is substantially more capable.
- 06
Ecosystem integration
Microsoft 365 integrates deeply with Dynamics 365, Azure, and the majority of enterprise business software used in Australia. If you are running Xero, MYOB, Salesforce, or any major ERP, the Microsoft integration story is typically better established and more complete.
The compliance reality for Australian businesses
Australian data sovereignty has become increasingly relevant. Microsoft's Australian datacentres (Sydney and Melbourne) mean that Microsoft 365 data for Australian customers is stored in Australia by default. Google has Australian infrastructure but the data residency story for all Workspace products is less uniformly Australian.
For businesses subject to the Privacy Act, Australian Government security frameworks, or industry-specific regulations, this distinction is worth examining in detail with your compliance adviser.
When Google Workspace makes sense
- Small team (under 15) with simple document needs and no compliance requirements
- Primarily browser-based work with no need for offline desktop applications
- Strong preference for simplicity over security depth
- Clients and partners are also primarily on Google
- Budget is the primary constraint and security requirements are minimal
When Microsoft 365 makes more sense
- Professional services, finance, legal, healthcare, or government-adjacent work
- Regular use of complex Excel, Word, or PowerPoint files
- Remote or hybrid workers using personal or company devices
- Compliance, cyber insurance, or data governance requirements
- Clients and partners primarily on Microsoft (the majority in Australian enterprise)
- Plans to use automation, Power Apps, or Copilot
- Growing business that needs scalable security and device management
Most Australian businesses that outgrow Google Workspace migrate to Microsoft 365, not the other way around. The migration is not trivial — it involves mailbox, Drive, and document migration — so getting the platform decision right earlier saves significant effort later.
Migrating from Google Workspace to Microsoft 365
If you are currently on Google Workspace and considering a move, the migration involves mailboxes (Gmail to Exchange Online), file storage (Google Drive to OneDrive and SharePoint), and document conversion (Google Docs/Sheets/Slides to Word/Excel/PowerPoint). The conversion is largely automated but complex documents often require manual review.
The right time to migrate is before the business grows large enough that the migration itself becomes a major project. Migrating 20 users is manageable. Migrating 80 is a significant undertaking.
Next step
Microsoft Cloud
If you are moving from Google Workspace to Microsoft 365, or setting up Microsoft 365 properly for the first time, the Microsoft Cloud service covers the implementation, configuration and migration work.
Learn more