More than a decade ago, Google introduced Gmail, the first cloud-native productivity app, to help make email safer and easier for everyone. Since then, Google pioneered more ways for teams to collaborate in real-time with products like Google Calendar, Docs, Drive and Hangouts. Together, these apps make up G Suite, a set of intelligent, secure productivity and collaboration tools.
Google also brought businesses more than a dozen new G Suite services to help them reimagine how they work, including powerful video conferencing (Hangouts Meet), secure team messaging (Hangouts Chat) and enterprise-grade search capabilities (Cloud Search). They’ve also infused its products with advanced artificial intelligence to make it easier to respond to emails, gather insights from data and protect against phishing attacks before they happen.
Why is Google increasing G Suite prices?
Today, more than 4 million organizations use G Suite to collaborate efficiently and securely, and analysts have taken notice of this investment. According to a research director at IDC, Wayne Kurtzman: "Google has established G Suite as a secure, enterprise-ready, AI–powered productivity and collaboration platform. With its broad set of capabilities, G Suite offers a strong value proposition to customers.”
G Suite has increased in value through the years, but its price has remained the same for more than a decade. In order to keep pace with the value that G Suite now delivers, starting April 2, 2019, Google will increase the list price of the G Suite Basic- and Business editions.
These prices will apply to all new customers as of the effective date of April 2, 2019. For existing customers on the Flexible Plan, the new list prices will go into effect on April 2, 2019. For customers on the Annual Plan, the new prices will go into effect the first time their plan renews on or after April 2, 2019. These changes will not impact any contract or renewal events prior to that date.
Specifically, G Suite Basic Edition will increase to be $6 per user/month and G Suite Business Edition will increase to be $12 per user/month. Pricing for G Suite Enterprise Edition customers will not change. These are globally price. There will be local adjustment for certain regions. GoPomelo can provide the offers to help you lock in the old G Suite pricing.
Even after the price changes, the price of Basic and Business SKUs, which offer a full suite of services, remain below prices of a single service from many competitors. Google believes that while the price is increasing, it’s doing so in line with the value they’ve added to G Suite since the launch of Google Apps Premier Edition in 2007. A subscription now comes with triple the products and storage, plus a host of new features for each product. If small businesses purchased each of these capabilities independently, the total amount spent would be inordinately more.
Additionally, G Suite Basic edition delivers the most comprehensive suite of capabilities and innovative features that a business needs in order to succeed. These price increases will bring it to parity with the value Google has added to G Suite over the years.
While Google reserves the right to make price adjustments in the future, they don’t expect to make any additional changes in the near term. We understand the impact this change may have on our customers, but believe this price increase is aligned with the value customers get from our products today.