Is Google Workspace Really Better Than Microsoft 365? (A New Report Says Yes).
Picking your company's core productivity suite can feel like a toss-up, can't it? It’s usually Google Workspace or Microsoft 365, and the decision often comes down to "what you've used before" or which one has the best-known spreadsheet app.
But what if it's not a 50/50 choice? What if one platform gives your team a clear, measurable advantage over the other?
An independent research firm, Hypothesis Group, just surveyed 1,600 users across seven countries to compare the experiences of organisations using either Google Workspace or Microsoft 365. The results aren't vague—they are strikingly clear.
The Surprising Stat: It’s About Keeping Your People
Let's get straight to the most important point for any business owner: keeping your team happy. Finding and keeping great people is the hardest job you have.
According to the study, 76% of organisations using Google Workspace said it improves employee retention. For Microsoft 365, that number was just 58%.
That's an 18-point gap. It turns out that the tools your team uses every single day have a significant impact on whether they actually want to stay. And it doesn't stop there—85% of Workspace users said it improves team member satisfaction, compared to 76% for M365.
So, Where Does Google Workspace Pull Ahead?
Happy team members are a great start, but the data shows the advantages go deeper, hitting everything from your bottom line to your security.
1. Your Team Will Actually Use the AI
You can't escape the AI hype, but is it useful? According to users, one platform is making it far more practical. A massive 82% of Workspace users find its AI features (like Gemini) valuable, not just marketing fluff. That number plummets to 66% for M365 users (with Copilot).
More telling? Workspace users reported a 17-point lead in feeling confident about integrating that AI into their actual, everyday work.
2. Fewer Security Headaches (and Lower Costs)
This is a significant issue, especially if you don't have a large IT department. Organisations using Google Workspace were significantly more likely to say it lowers IT management costs (77% vs. 64% for M365).
But here's the real kicker: security. Thirty-three per cent of Workspace users reported that the number of security incidents at their company had decreased over the last 24 months. Only 22% of M365 users could make the same claim. Fewer security issues and lower costs are a powerful combination.
3. It Links Directly to Productivity and Growth
When your team is happier and has better tools, they accomplish more. Eighty-five per cent of Google Workspace users agree that the suite makes their team more productive.
This isn't just a "feeling," either. The report found a clear correlation with business growth. Two-thirds of the companies using Workspace reported an increase in revenue in the past two years—a full 14 points higher than their M365-using counterparts.
It’s Not a 50/50 Choice Anymore
So, while it might seem like a simple choice on the surface, the data from thousands of real-world users tells a different story.
Teams on Google Workspace report feeling more productive, see more value from AI, experience fewer security incidents, and are ultimately happier in their jobs, which helps with retention.
We've just pulled the highlights from the full October 2025 Hypothesis Group report. You can (and should!) grab the full PDF download using the form right here on this page to see all the data for yourself.
But if you've seen enough data and just want to know what this would look like for your business, let's talk. If you'd like an expert to help you map out a move or maximise the potential of the tools you already have, the next step is to book a video call with us.
