Deliverability: 82% IPR, second place overall
In our Q1 2026 seed-list test, Microsoft 365 landed 82% of messages in the primary inbox — 5 points below Google Workspace (87%), but well above Zoho (71%) and the budget hosts. This reflects Microsoft’s equivalent infrastructure advantage: they run Outlook.com, and Outlook.com trusts Microsoft 365 sending domains by default.
The practical difference between 87% (Google) and 82% (Microsoft) is negligible for most business email use cases. It only becomes material at high send volume or aggressive cold outreach.
Pricing: a rising badge
Microsoft 365 Business Basic is currently $6.00/seat/month — this will rise to $7.00/seat/month in July 2026. The RISING badge on this page reflects that. It is still below Google Workspace Business Starter at $7.20, but the gap is closing.
| Tier | Current | Jul 2026 | Key add |
|---|---|---|---|
| Business Basic | $6.00 | $7.00 | Web Office apps only |
| Business Standard | $12.50 | $12.50 | Desktop Office apps + Teams |
| Business Premium | $22.00 | $22.00 | Intune, Azure AD P1 |
Critical point: Business Basic includes web-only Office apps (Word Online, Excel Online). If you need the full desktop applications, you need Business Standard at $12.50/seat/mo. Most people searching for “Microsoft 365 email” expect the desktop apps and are surprised when Basic does not include them.
Where Microsoft 365 beats Google Workspace
Desktop Office. If your team produces complex Excel models, Word documents with precise formatting, or PowerPoint decks with advanced animations, the desktop apps matter. Google Docs and Sheets are good enough for collaboration — they are not full replacements for heavy Office work.
SharePoint and Teams. For organisations already running SharePoint or Microsoft Teams, having email on the same tenant simplifies admin, SSO, and licence management significantly.
Exchange familiarity. Teams migrating from on-premise Exchange find the transition to Microsoft 365 much lower-friction than switching to Google Workspace. The admin console, PowerShell tooling, and concept map are familiar.
BAA availability. Like Google Workspace, Microsoft 365 signs Business Associate Agreements for HIPAA-covered entities. Both are the only credible options for medical, legal, and regulated verticals.
Where Microsoft 365 falls short
The Basic-vs-Standard trap. The pricing tiers are confusing in a way that costs money. Buyers see “Microsoft 365 Business Basic — $6/seat” and assume they are getting Microsoft Office. They are not — they are getting web apps only. The upsell to $12.50/seat (Business Standard) doubles the price.
Admin complexity at scale. The Microsoft 365 admin centre is powerful and correspondingly complex. For teams without an IT person, provisioning users, configuring conditional access, and managing Intune policies is materially harder than Google Workspace.
No free tier. Unlike Zoho, there is no permanent free option.
The Office dependency question
Before choosing Microsoft 365, answer this honestly: does your team actually use Word, Excel, or PowerPoint for work that could not be done in Google Docs/Sheets/Slides?
If yes — Microsoft 365 Business Standard at $12.50/seat is the right answer.
If no (or if you mainly receive Office files rather than create them) — Google Workspace at $7.20/seat gives you better deliverability, simpler admin, and broader integrations for less money (especially from July 2026 when the price gap closes further).
Verdict
Microsoft 365 is the right answer when the answer to “do you need desktop Office?” is yes, or when you are migrating from on-premise Exchange and want minimum disruption. At 82% IPR and stable-ish pricing (note the July 2026 rise), it is a tier-1 recommendation.
For teams without an Office dependency, Google Workspace edges ahead on deliverability, simplicity, and post-July 2026 price parity.
Full comparison: Google Workspace vs Microsoft 365.