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In this article
- What you're actually comparing
- Pricing in NZD
- Microsoft 365 Business plans (current NZD pricing)
- Google Workspace Business plans (USD pricing, NZD approximate)
- What actually differs day-to-day
- Collaboration
- Offline access
- Video conferencing
- Xero and accounting software integration
- Who should pick which
- A third option: Zoho Workplace
- The bottom line
Microsoft just announced the biggest price increase to its 365 suite since 2022, and it takes effect on 1 July 2026. If you run a NZ small business and your Microsoft 365 subscription is up for renewal, this is a good moment to check whether you're on the right platform.
This article compares Google Workspace and Microsoft 365 on the things that actually matter for NZ businesses: price in NZD, collaboration features, offline access, storage, IRD/accounting integrations, and how well each works if half your team is remote or rural.
What you're actually comparing
Both platforms give your team a business email address, cloud storage, word processing, spreadsheets, and video calls. The difference is in the ecosystem each one is built around.
Microsoft 365 is the better fit if your team already lives in Word, Excel, and PowerPoint. Documents move between desktop and cloud without fuss, and features like pivot tables and mail-merge work exactly as expected. The mobile and web apps are genuinely capable, not stripped-down ports.
Google Workspace is built around the browser. Docs, Sheets, and Slides are weaker on advanced formatting but excellent for real-time collaboration. If you have a distributed team working across different devices and locations, Google's live co-editing is smoother and more reliable than Microsoft's.
Pricing in NZD
Microsoft 365 Business plans (current NZD pricing)
| Plan | Price | Storage | Key features |
|---|---|---|---|
| Business Basic | NZD $9.70/user/month | 1TB OneDrive | Web/mobile apps, Teams, Exchange email |
| Business Standard | NZD $20.20/user/month | 1TB OneDrive | Full desktop Office apps, Teams, Bookings |
| Business Premium | NZD $35.60/user/month | 1TB OneDrive | All of Standard + Intune device management, advanced security |
Price increase alert: From 1 July 2026, Microsoft is raising prices across several Business plans (announced December 2025). Business Basic moves from roughly USD $6 to USD $7/user/month (+17%), and Business Standard from USD $12.50 to USD $14/user/month (+12%). The NZD equivalents will follow. If you renew before 1 July, you can lock in the current rate for your full subscription term.
Business Premium pricing stays unchanged in the July revision.
Google Workspace Business plans (USD pricing, NZD approximate)
| Plan | USD price | NZD approx (×1.65) | Storage | Key features |
|---|---|---|---|---|
| Business Starter | $7/user/month | ~NZD $11.55 | 30GB pooled | Gmail, Meet, Drive, Docs suite |
| Business Standard | $14/user/month | ~NZD $23.10 | 2TB pooled | All Starter + recording, noise cancellation, eSignature |
| Business Plus | $22/user/month | ~NZD $36.30 | 5TB pooled | All Standard + enhanced audit, attendance tracking |
Google bills in USD regardless of where you are. Your credit card does the currency conversion, so the NZD cost fluctuates with the exchange rate. Microsoft's NZD pricing is set in local currency and doesn't change with daily FX movements.
What actually differs day-to-day
Collaboration
Google Workspace wins on real-time co-editing. Multiple people can work in the same Google Doc or Sheet simultaneously with cursor tracking. Microsoft's equivalent (via OneDrive + Office Online) has improved significantly, but it still has edge cases where syncing gets confused on complex spreadsheets.
If your team sends around a lot of formatted Word documents or complex Excel models, Microsoft's desktop apps are better. Google Docs handles most documents fine but has noticeably weaker support for tracked-changes workflows and complex formatting.
Offline access
Microsoft's desktop apps work fully offline. Google Workspace requires manual enabling of offline mode per device, and Docs/Sheets offline functionality is more limited.
For NZ businesses with rural or remote team members where broadband is unreliable, Microsoft has a practical advantage. You can finish a document on a train through the Manawatu Gorge without stressing about sync.
Both platforms provide professional email with your domain. Gmail's interface is more widely liked by people who deal with high email volume. Outlook has more powerful rules and calendar features, which matters for businesses that live in their calendar (consultancies, trades businesses, anyone scheduling heavily).
Video conferencing
Google Meet comes with every Workspace plan and works well without installing anything. Microsoft Teams comes with all 365 Business plans and is more full-featured for team channels and threaded discussions, but heavier on system resources.
Xero and accounting software integration
Both Google Workspace and Microsoft 365 integrate with Xero, MYOB, and most NZ accounting software via third-party connectors. Neither has a native NZ accounting tie-in that gives it a clear edge here. If you're on Xero, you'll use the Xero app regardless of whether your email is Gmail or Outlook.
Who should pick which
Pick Microsoft 365 Business Standard (NZD $20.20/user/month) if:
- Your team produces complex Word, Excel, or PowerPoint documents as core work output
- You need solid offline access for remote or rural staff
- You're already running Windows desktops (Office integration works natively)
- You need detailed mail merge, pivot table workflows, or advanced Excel modelling
Pick Google Workspace Business Starter (~NZD $11.55/user/month) if:
- Your team does most of its work collaboratively in real time
- You're a distributed or hybrid team who doesn't want to think about syncing
- You're cost-conscious and don't need full desktop Office apps
- You use a lot of Google-native tools (Forms, Looker Studio, YouTube)
If you're currently on Microsoft 365 and your subscription renews after July 1: renew early to lock in current rates. The process is simple in the Microsoft 365 admin centre. The saving on a five-person Business Standard plan is around NZD $170/year at current exchange rates.
A third option: Zoho Workplace
If cost is the primary driver and you can live without Microsoft Office compatibility, Zoho Workplace starts at USD $3/user/month (~NZD $5/month). It includes email, documents, sheets, and video calls. The interface is less polished than either Google or Microsoft, and file compatibility with Word and Excel is imperfect.
Zoho is viable for a solo operator or a very small team that stays within the Zoho ecosystem. It becomes awkward when clients or contractors expect to co-edit Microsoft Office files.
The bottom line
For most NZ small businesses with three to twenty people, Google Workspace Business Starter at around NZD $11.55/user/month is the better starting point if you're building from scratch. The collaboration is smoother, the pricing is lower, and the browser-based approach ages better as remote work becomes the norm.
If your team already depends on Excel's advanced features, works offline frequently, or produces a lot of document-heavy deliverables for clients, Microsoft 365 Business Standard at NZD $20.20/user/month is worth the extra cost. Just renew before 1 July 2026 if you can.
If you're already on Microsoft 365 and it's working: there's no urgent reason to switch. Migrating email and files has a real productivity cost that often outweighs the savings for established teams.
Toby Downs runs tpdowns.com from Wellington, NZ. Pricing data sourced from microsoft.com/en-nz and workspace.google.com pricing pages, June 2026.