Announced last month, changes to Google Workspace pricing, including a price increase, are coming into effect from tomorrow onwards.

Google has long offered two payment plans for the entry Workspace Business tiers. With the Flexible Plan, you’re “billed monthly for each user account,” while the Annual/Fixed-Term Plan involves a commitment to “purchasing the service for a full year or multiple years.”

  • Flexible Plan: “You can add and remove accounts at any time and pay only for the accounts you have during that month. You can cancel service at any time without penalty.”
  • Annual Plan: “If your team grows, you can purchase more licenses and your monthly rate goes up. You can reduce licenses or monthly payments only when renewing your plan at the end of the contract. If you cancel your subscription before the contract is up, you still pay for the full commitment.”

Regardless of how you paid, the per user, per month cost for both plans was the same at $6 for Business Starter, $12 for Business Standard, and $18 for Business Plus. That’s now changing, with Flexible Plans going to $7.20, $14.40, and $21.60, respectively.

Google Workspace price increase
Old pricing

There are no changes to Annual Plan pricing, but you’ll be able to purchase it directly online instead of having to contact a “Google Sales representative” starting March 14. Additionally, existing Flexible Plan customers can switch to the Annual Plan via the Admin Console.

Google is also increasing the price of Google Workspace Enterprise Standard, though you have to contact sales to find out pricing, just as before. There are “no list price changes to the other Enterprise editions, including education upgrades.”

Lastly, Google is “adjusting some local currency pricing, something we evaluate periodically to maintain alignment with the exchange rates to the US dollar.”

For existing customers, pricing changes start rolling out next month and will continue through 2024 “depending on factors that include number of user licenses, current contract terms, and payment plan.” Google will provide at least 30 days notice before any change occurs.

For example, pricing for existing Google Workspace subscriptions with 10 or fewer user licenses will not change until January 2024. Customers will be notified via the Google Workspace Admin Console.

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Abner Li

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