5. Illustrative cases: Model assumptions, limits and costs
Cases A and B are hypothetical scenarios reproducible with the calculator. Case C is a compatibility guide without a validated financial budget.
Case A: A small team starting out (10 users, new business)
Reproducible assumptions: 10 users; annual commitment; USD; new business; Starter and Basic at USD 7/user/month; support 4 hours/month at USD 25/hour. Setup: 0 hours; training: USD 0; confirmed taxes: 0 for both providers. With the form's default 15 hours, setup adds USD 375, giving a total of USD 2,415.
A professional services agency or startup with 10 team members begins operations and needs business email, cloud storage and everyday productivity tools.
- Plans evaluated
- Google Starter vs Microsoft Basic (USD 7/month)
- Annual licenses
- USD 840.00 (both suites)
- Monthly support
- 4 hours/month × USD 25 = USD 1,200/year
- 12-month TCO
- USD 2,040.00 (full parity)
Functional decision criterion: At the same cost, Microsoft Business Basic includes 1 TB of individual OneDrive storage and Teams for 300 attendees. If the team values a lighter, more agile web interface, Google Starter offers simpler administration but only 30 GB of pooled storage.
Case B: A company already using Microsoft and considering Google migration (10 users)
Reproducible assumptions: annual commitment; USD; currently Microsoft; Starter USD 7 and Standard USD 14/user/month; 15 migration hours at USD 25; training USD 0; support 4 hours/month at USD 25 (USD 100/month for both); confirmed taxes 0 for both.
A company uses Microsoft 365 Business Standard (USD 14/month) and considers migrating to Google Workspace Business Starter (USD 7/month) to reduce costs.
- Monthly savings
- (14 - 7) × 10 = USD 70.00/month
- Switching cost
- 15 IT hours × USD 25 = USD 375.00
- Break-even point
- Month 6 (5.36 months precisely)
- Year 1 savings
- USD 465.00 net
Methodological limitation: The USD 375 investment pays back in month 6, but entails a deliberate reduction in capabilities: moving from desktop Office on 5 devices and 1 TB of storage to a strictly web-based environment with 30 GB. This is only advisable if the team does not depend on macros or installable software.
Case C: An organization with complex Excel macros or Outlook add-ins
A distributor or accounting department with 25 users works with spreadsheets containing Visual Basic for Applications (VBA) code, pivot tables with external sources and business templates installed on PCs.
- Recommended option
- Microsoft Business Standard or Premium
- Risk of moving to Google
- Rewriting macros in Apps Script
- Adaptation budget
- Pending inventory, testing and quotes
- TCO conclusion
- Undetermined without quotes and switching costs
Financial analysis: Inventory macros and add-ins and test them on the target platform. Google Sheets requires adapting macros to Apps Script; Outlook COM add-ins require Windows and a compatible version. No hours or savings are assigned without a quote. Compare both suites and adaptation costs before concluding which has a lower TCO.
6. Total cost of ownership breakdown (12 and 36 months)
To quantify each platform's financial impact, the model splits TCO into four independent components:
The real cost, in four components
A license is only the starting point. Add recurring costs over the period and the one-time transition cost if you choose to switch suites.
Licenses
Users × monthly price per user × months.
Use the price for your plan and market, with an annual or monthly commitment.Operations
Monthly support hours × hourly cost × months.
IT team or administrative support time has a verifiable direct cost.Transition
Migration hours × hourly cost + training.
If you already use that suite, the model does not charge migration to it. Include macro and workflow adaptation.Taxes
Period licenses × confirmed percentage.
Set the rate independently for each provider. Until confirmed, we show a provisional base.If the difference between both options is less than or equal to 1.5% of the lower TCO, the model declares TCO12 parity. In those cases, a price-only decision is not meaningful: consider desktop software compatibility, the security ecosystem and the team's working culture.
7. Technical migration and investment payback curve
Switching office suites involves more than entering a credit card. A successful corporate transition requires a phased technical project:
- Identity inventory and provisioning: Map user accounts, shared mailboxes, aliases, distribution groups and security policies.
- DNS record reconfiguration: Precisely adjust MX, SPF, DKIM and DMARC records to maintain email continuity without losses or bounces.
- Historical data migration: Move mailboxes from Exchange to Gmail (or vice versa), calendars, contacts and document repositories from OneDrive/SharePoint to Google Drive.
- Operational adaptation and training: Train staff in shortcuts and collaborative workflows and review macros or corporate templates.
Curve data and assumptions (USD)
10 users; annual commitment; currently Microsoft Standard at USD 14/user/month; target Google Starter at USD 7. Migration: 15 hours × USD 25 = USD 375. Support: 4 hours × USD 25 = USD 100/month for both. Training: USD 0. Confirmed taxes: 0 on both invoices. These plans differ functionally. Staying = 240 × months; migrating = 375 + 170 × months. The balance is staying minus migrating.
| Month | Stay | Migrate | Balance in favor of migration |
|---|---|---|---|
| 0 | 0 | 375 | -375 |
| 1 | 240 | 545 | -305 |
| 2 | 480 | 715 | -235 |
| 3 | 720 | 885 | -165 |
| 4 | 960 | 1,055 | -95 |
| 5 | 1,200 | 1,225 | -25 |
| 6 | 1,440 | 1,395 | 45 |
| 7 | 1,680 | 1,565 | 115 |
| 8 | 1,920 | 1,735 | 185 |
| 9 | 2,160 | 1,905 | 255 |
| 10 | 2,400 | 2,075 | 325 |
| 11 | 2,640 | 2,245 | 395 |
| 12 | 2,880 | 2,415 | 465 |
In the charted example, a 10-user company currently using Microsoft 365 Business Standard (USD 14/month) considers Google Workspace Business Starter (USD 7/month). The upfront switching investment is USD 375 (15 IT hours at USD 25/hour). With recurring monthly license savings of USD 70, the exact mathematical break-even point is:
Break-even point = Incremental transition cost / Recurring monthly savings
Break-even point = USD 375.00 / USD 70.00 = 5.357 months (5 months and 11 days)Therefore, the first complete month with a positive net financial balance is month 6. During the first five months, the company has a cumulative deficit due to migration spending. At the end of year 1, cumulative net savings are USD 465.00 (TCO of USD 2,415 compared with USD 2,880 for staying).
Scenarios with no payback: If a company considers moving between plans at price parity (for example, Google Standard to Microsoft Standard, both at USD 14), recurring license savings are zero. In that situation, license savings never recover the migration cost: strong functional needs are required to justify the change.
8. Decision matrix by requirements and governance
When annual list prices match at USD 7, USD 14 and USD 22, technological architecture and team requirements should guide your choice:
Evaluate simultaneous requirements: if you need Intune, Defender and conditional access, consider Premium whether or not you need installed Office. If you need installed Office without those security requirements, consider Standard. If web collaboration and pooled storage are priorities, compare Google Standard/Plus with the relevant Microsoft capabilities. Then compare switching costs and your current situation: no single requirement rules out the others.
Technology selection guidelines:
- Choose Microsoft 365 Business Standard or Premium if: Your finance, accounting or legal team depends on advanced Excel macros, compatible Outlook add-ins (COM on Windows) or offline editing of complex documents in installed applications. Check every macro and add-in on the specific platform.
- Choose Microsoft 365 Business Premium if: Your organization needs to protect remote workstations with conditional access policies, file encryption, mobile device management (Intune MDM/MAM) and ransomware protection (Defender EDR) in a single USD 22 subscription.
- Choose Google Workspace Business Standard or Plus if: Your corporate culture is cloud-native, you prioritize fast simultaneous collaboration on shared browser documents, use Chromebooks or lightweight MacBooks and value pooled storage management (2 TB or 5 TB per user).
- Consider keeping your current platform if: The platform meets all your requirements and the savings or operational improvements from switching do not justify the cost. Enter verifiable costs; do not assume every migration eliminates savings.
9. International taxation and tax framework
The financial model compares base costs in US dollars (USD) and accepts custom regional quotes per provider. Billing country, bank currency, distribution channel and tax treatment can materially change the final invoice.
In Colombia, for example, the standard VAT rate is 19%. However, the National Tax and Customs Directorate (DIAN), in Oficio 1447 of 2019, Oficio 21930 of 2019 and Concepto 017056 of 2017 recognizes that cloud computing services are excluded from VAT if they meet the five technical characteristics established in the rules (on-demand self-service, broad network access, resource pooling, rapid elasticity and measured service). Related services (training or local support) do not automatically inherit this exclusion.
For electronic invoicing requirements, supporting documents (DIAN Resolution 000167 of 2021) and VAT treatment in other international markets, see our specialist guide:
Software invoicing and taxes by country →
See how international SaaS subscriptions are taxed, DIAN doctrine, cross-border VAT and when withholding applies.
10. FAQs, methodology and official sources
Which is cheaper in my country?
Compare equivalent regional quotes and add operations, transition and confirmed taxes on each invoice. Reference rates are not valid offers in every country.
What tax should I enter?
The confirmed percentage on the licenses in your invoice. Your country, provider and tax status can change it. Until confirmed, the result is a provisional base estimate.
Does Google Workspace have desktop applications?
No. Google's tools (Docs, Sheets, Slides) run in the web browser and mobile applications. Google Drive for desktop synchronizes local folders, but editing relies on the web environment. If your business requires locally installed office software, Microsoft 365 Business Standard or Premium includes licenses for 5 PCs or Macs per user.
What happens to prices after Microsoft's July 2026 increase?
From July 1, 2026, new contracts and renewals for Microsoft 365 Business Basic rose from USD 6 to USD 7, and Business Standard from USD 12.50 to USD 14/month with an annual commitment. An annual subscription signed before that date retains its agreed contractual price until the billing period expires.
How do migration and training affect the real cost?
Subscription cost is only one component of TCO. Migrating historical mailboxes and folder permissions and training staff on a different interface require technical work hours. When two plans have nominal price parity, switching costs can favor keeping the current platform unless there are underlying operational reasons to change.
Model methodology and assumptions
CosteSoftware's mathematical simulator uses linear cash flows with constant users, list rates, exchange rate and support hours. Transition and training are one-time, nonrecurring outlays. The model does not calculate net present value, inflation, advanced third-party add-ons or deductible tax credits. The administrative support budget applies symmetrically to both options.
Official primary sources and verification dates
Commercial and technical information checked against official vendor websites: Google Workspace Pricing, Google Business editions, Microsoft 365 Business with Teams (Colombia), Microsoft Licensing Updates (July 2026) and DIAN Oficio 1447 of 2019.
Commercial verification dates: September 29 and September 30, 2026. Editorial lead: Juan Cuervo.