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Google is known for its constant innovation and updates, but sometimes these changes come with a cost. In this case, Google is revamping its pricing structure for business users of Google Workspace, formerly known as G-Suite. The new pricing affects only business subscribers to the service, while the apps remain free for individual and personal use.
According to Ars Technica, new customers will immediately be affected by the price hike, while existing subscribers will begin to see changes from their next billing month, which is expected to be April. Monthly prices for business users are increasing by a fifth, and Google is now also offering an annual version of its service. However, business users must commit to a year-long contract to take advantage of the old pricing.
The monthly cost per user for the Flexible Plan is:
- Business Starter is now $7.20/month before $6/month
- Business Standard is $14.40/month before $12/month
- Business Plus is $21.60/month before $18/month
Google is pushing users to switch to an annual plan, as it prefers customers to commit to a year in advance. Users who choose this option will not have to pay the yearly fee upfront. Instead, it is a commitment to keep using the services for a year. They will be billed each month at the same rate they were before. However, it’s not possible to move to this new tier and then cancel after a month.
The new annual plan comes with its own set of problems. Business users who switch to this plan must specify in advance how big their team will become. While businesses can add more people and their fee will increase to match, they cannot reduce the number of users to save money. This lack of flexibility may be a deal-breaker for some businesses.
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While Google has been touting its new AI tools for Google Workspace, this pricing change has gone under the radar. However, it could have a significant impact on businesses that rely on the service. It remains to be seen how many business users will opt for the new annual plan and whether Google will make any further changes to its pricing structure in the future.
