Google Hikes G-Suite Productivity Software Pricing For The First Time Ever

Google’s G Suite has long been a cheaper alternative to Microsoft’s Office 365 plans. However, this price gap is quickly shrinking. Google recently announced that it will be increasing the price of G Suite Basic and Business by 20 percent. This is the first time Google has upped the pricing in over a decade.

G Suite Basic Edition will increase from $5 to $6 USD per user/month, while the Business edition will increase from $10 to $12 per user/month. There will be a few pricing adjustments based off of the markets in various regions. The new pricing will be effective starting April 2nd, and users will receive an email about their domains no later than February 28th. G Suite Enterprise Edition pricing will remain the same at $25 per user/month, while accounts for non-business users are still free.

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David Thacker, Vice President of Product Management, believes that the price increase is justified because Google now offers more tools than it did when it launched G Suite. He remarked, “Since then, we pioneered more ways for teams to collaborate in real-time with products like Google Calendar, Docs, Drive and Hangouts...Today, more than four million organizations use G Suite to collaborate efficiently and securely…”

Many believe that Google is increasing the pricing to better compete with Microsoft. The various plans from both companies are not directly comparable, but they do share some similarities. For example, both of them feature office services and 24/7 support. The Microsoft Office 365 Business pricing ranges from $5 per user/month to $12.50 per user/month. Their Enterprise pricing tends to vary by company.

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Google seems to be trying to compete for Microsoft’s business clients, whereas Microsoft is trying to attract more casual users. The Redmond software giant recently posted a job listing for a Microsoft 365 Consumer Subscription product manager and senior product manager. The listings are part of a plan to engage “professional consumers” who know how to use technology but need help to get more done. Google's free services likely already hog this share of the market. It will be interesting to see whether Google's price hike will help it to better compete against Microsoft and if Microsoft's upcoming consumer subscription will be able to entice Google's free users.