Google is raising prices for its G Suite Basic and G Suite Business productivity suites for the first time ever.
G Suite, which competes directly with Microsoft's Office 365, is raising its prices for the first time. G Suite Basic will raise prices from $5 per user per month to $6. G Suite Business will go from $10 per user per month to $12. According to Google, G Suite Enterprise, which runs $25 per user a month, isn't impacted by the price increase.
Competitively, the pricing moves are in line with Office 365, but mind the details when it comes to features. Microsoft's Office 365 Business Essentials is $5 per user a month with annual commitment with Office 365 Business at $8.25 a month and Office 365 Business Premium at $12.50 a month with same terms. Those plans are small business oriented.
The Microsoft plans differ on apps offered as well as storage.
Overall, G Suite pricing is a bit easier to follow. The G Suite price increases are global and go into effect April 2. Google argues that it has tripled the value delivered in G Suite via artificial intelligence, meeting tools and other features and apps.
A few things to note:
Customers on an annual contract will get new pricing when G Suite renews.
The prices apply globally with local market adjustments for certain regions.
Current contracts will be honored.
Customers that license G Suite through a reseller will hear directly from those Google partners.
For illustration purposes, a small business with 5 users of G Suite will see annual costs go from $300 to $360. A business with 100 users on G Suite will see annual costs go from $12,000 to $14,400.
In isolation, G Suite's price-to-value argument makes sense. However, technology prices are creeping higher due to everything from storage prices to components to trade wars. For a business, it adds up. Google's G Suite move may also indicate that cloud providers have pricing power in certain areas.
For Google, the G Suite price increases could materially add up. G Suite is estimated to be half of Google's cloud revenue.
Here are some primers to factor in the G Suite increases and options versus Office 365.
Best Google Chrome extensions for productivity, security, and performance (2018 edition)