New research from Gartner senior analyst Domenico Scriva finds that switching from Microsoft 365 to Google Workspace does not deliver meaningful financial advantages, despite popular perception that Google’s solutions are cheaper. The move appears driven more by dissatisfaction or preference than clear economic benefit.
- Migrating to Google Workspace does not guarantee cost savings over Microsoft 365 E5
- Additional Microsoft 365 features add value beyond base licensing costs
- Hardware shifts and user dissatisfaction drive many migrations despite ROI concerns
What happened
Gartner’s Domenico Scriva conducted research showing that companies switching from Microsoft 365 to Google Workspace are not realizing meaningful return on investment. While Google Workspace licenses generally start at a lower cost, Microsoft’s M365 E5 subscriptions include added benefits that factor into total cost considerations, such as telephony, enhanced security, and operating system licenses.
Scriva highlights that the perceived savings from switching are undermined by the added services in Microsoft’s offering and the incremental cost of features like AI helpers—Google includes its Gemini AI in plans while Microsoft charges extra for Copilot. Despite Google Workspace’s lower license price, this makes it roughly $2 more expensive per user monthly after a full comparison.
Why it matters
The decision to switch software platforms often stems more from user dissatisfaction rather than a solid financial business case. Scriva emphasizes that unhappiness with Microsoft 365 should not constitute a business reason to undertake migration, especially given the usually high costs of retraining employees and transitioning infrastructure, which can negate any apparent savings.
Additionally, shifts in hardware trends may be influencing these changes. Google Workspace tends to align cost-effectively with Macs, which have longer refresh cycles, and Chromebooks, which have lower acquisition costs. This suggests that migration decisions might reflect broader changes in enterprise IT beyond pure software preference.
What to watch next
Enterprises should focus on measurable business outcomes rather than instinctual reactions when considering platform changes. As AI integration and software capabilities evolve rapidly, organizations might benefit by waiting to see how these developments impact productivity suites before committing to costly migrations.
Stakeholders should also carefully evaluate the total cost of ownership, including hidden migration expenses and impacts on user workflows. The ongoing competition between Microsoft and Google for enterprise customers will likely continue, shaped by software innovation, pricing structures, and emerging hardware trends.