Tech

Businesses are dropping Microsoft 365 in favor of Google, but if the ROI is no different, why are people switching?

Published

2 hours ago

16 September 2026

NewsAdmin

M365 E5 plans tend to include more than their Google Workspace counterparts
Google can sometimes work out cheaper for Mac and Chromebook users
Software is undergoing an AI change, so is it best to just wait?

New research from Senior Gartner principal analyst Domenico Scriva has deemed that switching from Microsoft 365 to Google Workspace doesn’t actually deliver any meaningful savings (via The Register).

This is despite Google Workspace licenses generally coming in cheaper than their Microsoft 365 counterpart, M365 E5.

Instead, Scriva claims that many companies are only switching to Google out of pure spite or dissatisfaction with M365, without assessing the ROI.

Why are businesses switching from M365 to Google Workspace?

Scriva argued that being unhappy with Microsoft isn’t itself a business case for switching, while also noting that the E5 subscription adds additional things like telephony, security and even OS licences, which customers wouldn’t otherwise get with a Google Workspace subscription.

All of this considered, plus the fact that Gemini is included in Google plans while Copilot is a paid extra, still leaves Google coming out at $2 per month more expensive, the analyst revealed.

However, migrations could be spelling out much more than a preference of software, because Scriva admitted that Google Workspace plans can actually be most cost-effective for Macs, which tend to have longer service lives, and Chromebooks, which are usually cheaper to acquire in the first place.

With this in mind, it’s possible that we’re also seeing a shift in hardware tendencies, be it a reduction in refresh cycle frequency or a total migration to a new type of hardware.

Still, whether it’s a software migration, a hardware switch, or both, Scriva warns that retraining costs can instantly wipe any ROI that a company could have otherwise achieved.

At the end of the day, Gartner warns that enterprises should consider specific business outcomes rather than acting on instinct, and with AI likely to change software as a whole, many may be better off riding out their lesser-preferred software option to see where things are heading.