[mdasen]

I guess it doesn't seem cheap compared to Microsoft 365. Google's $6 plan includes 30GB per user while Microsoft's includes 1TB per user. Google offers a $12 plan and Microsoft a $12.50 plan, but Microsoft's $12.50 plan includes Word/Excel/PowerPoint/etc. for desktop. If your business is going to be licensing those apps, it seems like a good deal compared to Google's subscription.

Maybe people just really prefer Gmail? I know people have negative feelings toward Microsoft Teams.

I guess with Google Workspace, I'm not quite sure how it's that different from what people are used to getting for free (other than with corporate permissions). Google's $6 plan doesn't really include much for storage and their $12 feels like Microsoft's $6 plan.

If Google is in a tough place, I'd argue it's because they anchored their pricing to free with their consumer offerings. You're not wrong that Workspaces provides a lot of value compared to a lot of subscriptions. At the same time, it's something people are accustomed to getting for free and the $6 plan doesn't really offer much on top of their free services. Microsoft is throwing storage at their low-tier plan - offering a clear differentiator from their free service. Microsoft is offering their Office suite for their mid-tier plan - something that is a $440 purchase or $12/mo over the course of 3 years; you're basically getting all the services for free for the price of Microsoft Office. Microsoft is offering lots of device management tools that businesses need in their high-tier plan.

You are totally right that Google's pricing is low for some definition of low. Lots of SaaS that does a lot less costs more. It's just that Microsoft seems to be throwing more value for your dollar at the problem. If you're going to be buying the Office suite for a lot of your employees, wouldn't it make more sense to buy Microsoft 365? Or are Google's services so superior that you'd rather pay twice? That's not a rhetorical question, it's just been a while since I've had a basis of comparison.

Ultimately, you're right. It's kinda silly for businesses to quibble over even $50/mo/user given that they might be paying their employees more than that per hour. But I think that people aren't always rational when it comes to pricing and Microsoft is likely counting on that with their offering.