Google Workspace vs Microsoft 365 for Business

Choosing Business Email and Office Tools

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When you set up a business website, you'll usually want matching email addresses, such as hello@yourbusiness.com.au, instead of a free Gmail or Hotmail address. For most small businesses, that comes down to two options: Google Workspace or Microsoft 365. Both provide professional email on your own domain, cloud storage, documents and video meetings. Both are mature, secure and widely used.

So which one suits your business? This guide compares Google Workspace vs Microsoft 365 for Australian small businesses: email, documents, storage, meetings, admin and security, plus how to choose and how to switch. We don't quote prices here because plans and pricing change regularly. Check each provider's Australian pricing page for current plans.

The Short Answer

• Choose Google Workspace if your team works mostly in a browser and on phones, values simplicity, and collaborates on documents in real time.
• Choose Microsoft 365 if your team relies on desktop Word, Excel and Outlook, shares files with clients who use Office, or uses industry software that integrates with Microsoft.

Both will handle email for a small business well. The bigger difference is how your team likes to work with documents.

Email: Gmail vs Outlook

Google Workspace (Gmail)

• Business Gmail on your domain, with the familiar Gmail interface in the browser and mobile apps.
• Strong search and spam filtering.
• Labels instead of folders, which some people love and others find confusing.
• Works with other email apps, including Outlook, if needed.

Microsoft 365 (Outlook and Exchange)

• Outlook on desktop, web and mobile, backed by Exchange Online.
• Folders, rules and a calendar that many office workers already know.
• Strong integration with Teams and shared mailboxes.

Setting up either one

Whichever you choose, you'll need to update your domain's DNS records, including MX records for mail and SPF, DKIM and DMARC records so your emails are trusted and less likely to land in spam. Our guide to stopping contact form spam explains why these records also matter for website form notifications.

Documents and Spreadsheets

Google Docs, Sheets and Slides

Google's apps run in the browser, save automatically and are built for real-time collaboration. Several people can edit a document at once and see each other's changes. They can open and export Word and Excel files, but complex formatting, macros and advanced Excel features may not convert perfectly.

Word, Excel and PowerPoint

Microsoft's apps are the standard in many industries. Some Microsoft 365 business plans include the full desktop apps, while entry-level plans are limited to the web and mobile versions. Check which plan includes desktop apps if your team needs them. Real-time co-authoring works well too, especially when files are stored in OneDrive or SharePoint.

Which matters for you?

If you exchange complex spreadsheets, templates or tracked-changes documents with accountants, lawyers, builders or government agencies, Microsoft's apps avoid formatting headaches. If most of your documents are internal, Google's simplicity is hard to beat.

File Storage and Sharing

• Google Drive: simple folder structure, shared drives for teams, easy sharing links.
• OneDrive and SharePoint: OneDrive for personal work files, SharePoint and Teams for shared team files. More powerful, but more to learn.

Both sync files to computers and phones, support sharing with people outside your business, and let you control access. Storage limits differ by plan.

Video Meetings and Chat

• Google Meet and Google Chat: simple, browser-based meetings and chat that suit small teams and client calls.
• Microsoft Teams: meetings, chat, channels and file collaboration in one app. Teams is powerful and widely used by larger organisations, which can matter if your clients use it.

Admin and Security

Both offer an admin console to add and remove users, reset passwords, manage devices and set security policies.

Essential settings for either platform:

• Turn on multi-factor authentication for every user, especially admins.
• Use separate admin accounts for administration where practical.
• Set up email authentication (SPF, DKIM, DMARC).
• Remove access promptly when staff leave.
• Back up important data, or check what your plan's retention features cover.

The Australian Cyber Security Centre publishes practical guidance for small businesses, including advice on multi-factor authentication and backups.

Ownership: Keep Control of Your Account

Whoever sets up your Workspace or Microsoft 365 account controls your business email. Make sure the main admin account belongs to the business and that an owner or manager holds the login, not just an IT contractor or former staff member. Our guide on who owns your website explains why the same principle applies to your domain, hosting and website.

How to Choose

Ask these questions:

1. Do staff need desktop Word and Excel, or are web apps enough?
2. Do clients or suppliers send you complex Office files?
3. Does your industry software integrate with one platform better?
4. How much real-time collaboration does your team do?
5. Which platform are your team already comfortable with?
6. What storage do you need per person?

If the answers are mixed, both providers offer free trials. Set up a trial with a couple of users and try your everyday tasks before committing.

Switching From One to the Other

Moving between platforms is common and both providers offer migration tools for email, contacts and calendars.

• Plan the cutover: pick a quiet time, such as a Friday afternoon.
• Migrate data first: copy old email and files before changing MX records.
• Update DNS: switch MX records and add the new provider's SPF and DKIM records. Remove the old provider's records once migration is complete.
• Reconnect devices: staff will need to set up email on phones and computers again.
• Update website forms: if your website sends email through your old provider, update the settings and test the forms.

If you're also moving your domain to a new registrar, do it separately from the email switch, so you're not troubleshooting two changes at once. Our guide to the .com.au domain eligibility rules covers what you need to keep your domain licence in order.

Common Mistakes

• Using a personal Gmail account as the business admin account.
• Forgetting SPF, DKIM and DMARC, leading to emails landing in spam.
• Buying more licences than you need. Shared mailboxes or aliases can often handle addresses like info@ and accounts@ without a paid user, depending on the plan.
• Not turning on multi-factor authentication.
• Leaving former staff accounts active.

Frequently Asked Questions

Is Google Workspace or Microsoft 365 better for small business?

Neither is better for everyone. Google Workspace suits browser-based teams that collaborate a lot. Microsoft 365 suits teams that rely on desktop Office apps or work with clients who use them.

Can I use Outlook with Google Workspace?

Yes. Google Workspace email can be used with Outlook and other email apps, although some features work best in Gmail.

Do I need to change my website to switch email providers?

Usually not, but you'll update DNS records and should test any website forms that send email.

How many email addresses do I need to pay for?

Usually one licence per person. Shared addresses like info@ can often be set up as aliases or shared mailboxes, depending on the provider and plan.

If you'd like help setting up a domain, website and email together, see our services.

Related guide: How to Transfer a .com.au Domain Safely