Don’t get too distracted by today’s big “AI for Google Workspace” announcement, because today is also the day Google Workspace increases in price. Last month, Google announced that the price of the most popular “professional” versions of Google Workspace would increase by 20%, and the company will launch an “annual” payment option on March 14. Today It’s a big day, and with this new payment plan, higher prices are available on the Google Workspace signup page for new users. Existing users will also see this 20% price increase at some point in the future, with the first rollout taking place in April. If you don’t want to pay more for Workspace, the new annual plan will let you sign up for Workspace for a year at the old price. Google’s new Workspace branding is a bit confusing. Previously, Google only branded the paid Professional versions of Google apps, which came with the option of a custom domain name for your Gmail account. Previously, this was “G Suite” and before it was “Google Apps for your domain”.
The new brand, “Workspace”, applies to both premium business accounts and free personal accounts. So obviously a free consumer Google Account for Gmail and Docs etc. are still free, but the three most popular enterprise versions – Business “Starter”, “Standard” and “Plus” – have increased in price. Companies pay for these accounts per user per month, so prices can add up quickly.
Annual plans were previously available to businesses through the traditional way of calling a sales representative, but now any business administrator can sign up for the annual plan online. Unlike the “flexible” monthly plans, Google’s terms of agreement say you’ll be limited to the number of users you choose at the beginning of the year, and although you can add new users and pay more more, but you can’t let them down. Even though you’re limited to one year of service, bills are still billed monthly, and added users will increase your bill in the future, so they’re prorated. You are not allowed to cancel the agreement earlier.
Many of these software-as-a-service companies offer you a deal if you sign up for a full year. Instead of lowering the price, Google actually raises the price of Workspace every month, so locking you into an annual plan can save you money. It’s hard to imagine leaving email anytime soon, isn’t it?
Prices are up 20% on all three major “business” versions. The “Business Starter” instance, which offers 30GB of storage per user, increased from $6 per user per month to $7.20. “Standard for Business” gets you up to 2TB per user and adds more Google Meet features like noise cancellation and meeting recording. It used to cost $12 per user per month, but now it will be $14.40. Business Plus, the 5TB plan, costs $18 a month, but is currently $21.6.