Microsoft 365 vs Google Workspace for Small UK Businesses: An Honest Comparison

Almost every small business I speak to is on one or the other: Microsoft 365 or Google Workspace. Occasionally both, which usually means nobody made a decision and things just accumulated. Here is how I think about the choice, based on what I see working day-to-day with small businesses in Kent and South East London.

I will be direct: for most UK small businesses, Microsoft 365 is the better fit. But Google Workspace is genuinely excellent for certain types of business, and the honest answer depends on how your team actually works.

The basics: what each platform gives you

Microsoft 365

Email via Outlook (Exchange backend), Word, Excel, PowerPoint as desktop apps and in-browser, Teams for video calls and messaging, SharePoint for shared file storage, and OneDrive for personal cloud storage. Business Standard (the most popular tier) is around £10-£11 per user per month.

Google Workspace

Email via Gmail (Google backend), Google Docs, Sheets, and Slides in-browser (no desktop apps), Google Meet for video calls, and Google Drive for all file storage. Business Starter is around £5 per user per month; Business Standard (with more storage) is around £10.

Where Microsoft 365 wins

Compatibility with clients and suppliers

The UK business world runs on Word and Excel. If your clients send you .docx and .xlsx files daily, Microsoft 365 is the path of least resistance. Google Docs can open and edit these files, but formatting sometimes shifts, and for complex spreadsheets or templates, the compatibility gaps become noticeable.

For most professional services, construction, trades, healthcare, and any business dealing with other businesses, this alone tips the decision towards Microsoft.

Desktop applications

Microsoft 365 includes full desktop versions of Word, Excel, and PowerPoint. These work offline, handle large files better, and have more features than the browser versions. Google Workspace is browser-first: Docs, Sheets, and Slides are web apps with no offline desktop equivalent (beyond a limited offline mode in Chrome).

If any of your team works somewhere with unreliable internet, or handles complex documents regularly, this matters.

Teams vs Meet for business use

Microsoft Teams is deeply embedded in the Microsoft 365 ecosystem: calendar integration, shared channels, file sharing within conversations, and integration with SharePoint. Google Meet is simpler and more accessible but lighter on features for structured business use.

Where Google Workspace wins

Price, especially for smaller teams

Google Workspace Business Starter at £5 per user per month is significantly cheaper than the cheapest useful Microsoft 365 tier (Business Basic, from around £4.50, but with web-only apps). If your business is small and document complexity is low, the saving adds up.

Real-time collaboration without version confusion

Google Docs is genuinely better for multiple people editing the same document at the same time. There is only one version, in the cloud, and you can see other people cursors moving in real time. Microsoft 365 has caught up significantly, but Google still has the edge for teams where collaborative writing is a daily workflow.

Simplicity for non-technical teams

Google Workspace is easier to set up and easier to explain. If your team is not particularly technical and you want something that just works in a browser, Google is often smoother.

The hybrid trap

I sometimes encounter businesses running both: M365 for email, Google Drive for file sharing, Dropbox for something else, Teams for calls but also WhatsApp, and Zoom for external meetings. This is the worst of all worlds. You pay for overlapping capabilities, files end up in multiple places, and nobody quite knows where anything is.

Pick one platform. Move everything to it. Use the collaboration tools it provides. The cost saving and productivity gain from eliminating the overlap is worth more than any feature difference between the two.

My recommendation for most small businesses in Kent

If you deal with other businesses, send contracts and reports, or have staff who work with complex spreadsheets: Microsoft 365 Business Standard.

If you are a small, tech-comfortable team doing mostly internal work, writing collaboratively, and comfortable in the browser: Google Workspace Business Starter or Standard.

If you are unsure: Microsoft 365 is the safer default because it causes fewer compatibility headaches as the business grows.

If you would like help making the choice or migrating from one to the other, get in touch and I will give you a straight answer based on how your team actually works.

Microsoft 365 support services

ClearPath IT Services provides Microsoft 365 setup, migration, and support for small businesses across Kent, Medway and South East London.