A pricing increase for Google Workspace plans has been revealed by Google, and it will take effect on April 11th, 2023. If your organisation is signed up for a Flexible Plan, you can save costs by switching to an Annual Plan.
The pricing changes follow the release of more than 300 new Google Workspace features in 2022, including appointment scheduling, email marketing, and videoconferencing enhancements. Users normally benefit from these upgrades almost instantly because Google Workspace apps are cloud-based and don’t require local software updates. We also anticipate more AI-powered capabilities later this year, which will enhance productivity and collaboration even more.
For a number of years, Google has provided two payment options for Google Workspace editions: a Flexible Plan which allows you to pay monthly for each user account, and an Annual Plan which requires you to purchase the service for at least a full year.
The cost per user, per month for both plans was the same for Business Starter (£4.60), Business Standard (£9.20), and Business Plus (£13.80), regardless of how you paid. The monthly cost for Flexible Plans users is now increasing to £6, £12, and £15, respectively. The Annual Plan pricing is now a more attractive option for organisations looking to lock in the lowest price.
Google is also raising the cost of Google Workspace Enterprise and Frontline editions, as shown in the table below. There are no list price changes to Education upgrades.
The price increase also includes an 11% currency adjustment for the pound against the US dollar.
Which Google Workspace Billing plans to choose?
The Annual Plan is available for all Google Workspace editions and comes at the lowest per-user price. With an Annual Plan, you agree to purchase the service for a full year or multiple years. If your team grows, you can buy more licenses for the remainder of the contract period. You can only reduce the number of licenses when renewing your plan at the end of the contract. You must pay for the entire commitment if you cancel your subscription before the contract expires.
Under the Flexible Plan, you are charged monthly for each user account. You only pay for the accounts you have in that month and can add or remove them whenever you want. The service cancellation process is free of charge at any time.
Can you switch between Google Workspace billing plans?
You are allowed to move from a Flexible Plan to an Annual Plan at any time.
Switching from an Annual Plan to a Flexible Plan is only allowed during a free trial or at the time of contract renewal.
When is the new Google Workspace pricing coming into effect?
The new pricing will be applied from April 2023, and its implementation will vary depending on factors such as the number of user licenses, current contract terms, and payment plan as well as region.
We understand that if you only have 10 or fewer licenses, the prices will not change until January 2024. Furthermore, any existing contract on Annual Plan will be honoured until the renewal date or the end of a multi-year contract.