Differences
Historically, Microsoft Office has been installed directly on computers, with documents saved locally. In contrast, Google Workspace (formerly G Suite) operates within an internet browser, such as Chrome, and doesn't require software installation. With Google Workspace, documents are primarily stored online.
| Google Workspace | Microsoft 365 | |
|---|---|---|
| documents saved | online only | on a computer as well as online |
| computer software | not included | included |
Since the 2013 version, MS Office requires an internet connection for periodic activation validation, and documents are automatically synced with Microsoft OneDrive (cloud) by default.
Sync Google with Microsoft Office
Google Workspace Sync for Microsoft Outlook application connects MS Office Outlook emails and calendar with Workspace.
Google Drive syncs various document types, such as text files and spreadsheets, across devices using Workspace. These devices can be PCs, tablets, or mobile phones running Microsoft, Mac, or Android systems. However, syncing between Google Workspace and Microsoft Office is far from perfect, and if you opt for Workspace, it's often better to avoid using Microsoft Office altogether. Android devices work best with the Workspace cloud, though Chrome laptops, while an option, remain less popular.
Microsoft 365 pricing Australia vs Google Workspace
Microsoft 365 Business Basic starts from around $6 AUD per user per month (internet-only, no desktop apps). The equivalent Google Workspace Starter plan starts from around $11 AUD per user per month.
Microsoft 365 Personal, without business features such as Exchange email, starts from around $109 AUD per year.
Microsoft 365 Business Standard, which includes desktop software and Exchange email, starts from around $18.70 AUD per user per month. Prices are approximate and change frequently - check Microsoft and Google for current rates.
Free personal email vs business email hosting
Personal emails look like: 
Business emails look like: 
Parts after @ are called domains. Gmail.com and Hotmail.com are the same for everyone in the world, so you cannot choose any username. But a business email server is linked to unique domains, usually a business name. So, you can have any email you like if it is unique to your business. Apart from the professional look, the advantage of business email hosting is the control over data and advanced features not available or limited in free email services.
Both Google Workspace and Microsoft 365 Business include an email server. Google confusingly call it Gmail but within the Workspace suite - it is similar to free Gmail but not the same. Microsoft's business email server is Exchange.
Outlook and Outlook.com difference
Outlook is the desktop email client included with Microsoft 365. Microsoft renamed the free online email service Hotmail to Outlook.com. The login for paid Microsoft 365 online is the same as for free Outlook.com. Basic email and document features are shared, but paid Microsoft 365 adds desktop software and a business email domain.
The new free Outlook app for Windows, available from the Microsoft Store, replaces the older Windows Live Mail client.
Issues with Microsoft 365
- Disrupting work features such as Focused inbox
- Complicated security, data retention, and administration policies.
- OneDrive can struggle with syncing a large number of files. For example, syncing 100 GB of files on a typical NBN connection with a 20 Mbps upload speed could take around 11 hours. This can also lead to syncing issues when multiple users access the same files.
Advantages of Microsoft 365
- Wide adoption, interoperability within organisations.
- Fast support responses.
- Easy domain setup
- Extensive functionality.
Issues with Google Workspace
- Synchronization with Microsoft Outlook may have limitations or inconsistencies.
- Self-certified for compliance but does not provide granular control over data.
- Inconsistent support with limited accountability.
Advantages of Google Workspace
- Simple and robust. Core services are relatively stable due to minimalism and a base of fanatic software developers.
Disclaimer
This comparison reflects the author’s direct experience configuring and supporting both platforms in small business environments.
Conclusion
For a small business or startup, Google Workspace is the way to go. Companies with IT support can choose Microsoft 365 Business.