Google Workspace users face higher costs as new pricing kicks in

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Google Workspace, the cloud-based productivity suite that includes Gmail, Docs, Drive, and Meet, is raising its prices for both business and enterprise customers. The new pricing, which was announced last year, is taking effect this month for existing customers, depending on their contract terms and payment plans. The price increases reflect the added value and innovations that Google Workspace delivers to its customers, according to the company.

Business plans see 20% price hike

The price increases affect all business-tier plans, which offer customers the option to pay as they go, with no commitment, and provide customers the option to add or delete user accounts at any time. The new prices for Google Workspace Business editions are:

  • $7.20 USD for Business Starter (previously $6)
  • $14.40 USD for Business Standard (previously $12)
  • $21.60 USD for Business Plus (previously $18)

The new prices apply to new customers who sign up for the flexible plan subscriptions starting March 14, 2023. Existing customers on the flexible plan will see the new pricing reflected in their first billing cycle after this week. Customers who have an annual plan can switch to the new pricing in the Admin Console.

Enterprise plans see variable price increases

The price increases also affect enterprise-tier plans, which are sold directly to businesses via salespersons, rather than using traditional subscription methods. The enterprise plans offer more advanced security, compliance, and management features, as well as custom solutions for specific needs. The new prices for Google Workspace Enterprise editions are not publicly listed, as they vary considerably based on factors such as number of user licenses, current contract terms, and payment plan.

Google Workspace

However, some customers have reported significant price increases, ranging from 38% to 54%, according to various sources. These price increases are taking effect during February 2024, but vary by account. Google said that it communicated the price changes to its enterprise customers over the course of 2023, and that it also adjusted some local currency pricing to maintain alignment with the exchange rates to the US dollar.

Google Workspace aims to deliver more value and innovation

Google Workspace, which was launched in October 2020 as a rebranding of G Suite, is Google’s cloud-based productivity suite that includes Gmail, Docs, Drive, Meet, Chat, Calendar, and more. The suite aims to provide a seamless and integrated experience for users to collaborate and communicate from anywhere, on any device. Google said that it delivered hundreds of new features to Google Workspace in 2022 alone, including improvements to its world-class security and reliability, as well as tools that increase the simplicity and helpfulness desired by smaller teams. Some of the recent updates include:

  • The ability to star messages and access a floating bar overflow sheet in Google Chat
  • A new Google Chat redesign that is widely rolling out on Android
  • The Duet AI side panel that can do various tasks in Gmail, Google Drive, and Docs
  • The ability to create and join meetings from Gmail and Google Calendar on the web
  • The ability to edit Microsoft Office files directly in Google Docs, Sheets, and Slides
  • The ability to use Google Assistant to create and join meetings, send emails, and more
  • The ability to use smart chips to mention people, files, and meetings in Google Docs
  • The ability to use live captions and translations in Google Meet
  • The ability to use breakout rooms and polls in Google Meet
  • The ability to use picture-in-picture mode in Google Meet on the web
  • The ability to use Google Workspace Add-ons to integrate third-party apps in Google Docs, Sheets, and Slides
  • The ability to use Google Workspace Frontline, a new edition designed for frontline workers
  • The ability to use Google Workspace Essentials, a new edition designed for teams that need access to Google Meet and Drive, but not Gmail or Calendar

Google said that the price increases reflect the higher value and innovations that Google Workspace delivers to its customers, and that it will continue to invest in the suite to make it more helpful, secure, and flexible for users.

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