Google Workspace: Compare Annual and Flexible Payment Plans

Google Workspace, formerly known as G Suite, has become a cornerstone for many businesses, providing essential tools for communication, collaboration, and productivity.

With various plans available, organizations have the option to choose between annual and flexible (monthly) payment plans. If you are planning to adopt Google Workspace for your business and get into the dilemma about which plan to choose, This blog will delve into the breakdown of the benefits and drawbacks of each plan and help you to make an informed decision.

Overview of Google Workspace

Google Workspace offers a suite of productivity tools, including Gmail, Google Drive, Google Meet, Google Calendar, Google Docs and more. Designed to streamline business operations, these tools facilitate effective communication and collaboration. The service is available in several plans: Business Starter, Business Standard, Business Plus, and Enterprise.

Flexible Plan

Adaptability and Ease of Use: The Flexible Plan is designed for ease and adaptability, allowing organizations to purchase, use, and modify their subscription with minimal effort.

Monthly Billing: Users are billed on a monthly basis per account. You can adjust the number of user accounts at any time, paying only for the active accounts within the month.

No Cancellation Penalty: You can cancel your subscription at any time without incurring a penalty, making it ideal for organizations with fluctuating workforce needs.

Standard Billing Rates (in USD):\

• Business Starter: $7.20 per user

• Business Standard: $14.40 per user

• Business Plus: $21.60 per user

• Cloud Identity Premium: $7.20 per user

Any country across the globe avails google workspace services based on the plans and pricing in its own currency. So depending upon your location of residence and workplace, you can check what are the prices of google workspace ,there.

Cloud Identity: Cloud Identity is an Identity as a Service (IDaaS) and enterprise mobility management (EMM) product.

Updated Pricing: Pricing changes for the Flexible Plan began in April 2023 for subscriptions with more than 10 licenses. New pricing will apply to subscriptions with 1–10 licenses starting in February 2024.

User Accounts: The Flexible Plan is ideal for businesses with a variable workforce, allowing easy addition or removal of user accounts. For example, a vacation resort can add temporary workers during peak seasons and only pay for the service used.

Service Cancellation: With the Flexible Plan, you can cancel your subscription anytime and are only billed for the service already utilized.

Payment Calculation: Billing is done monthly in arrears. For instance, if you have 7 user accounts under the Business Starter plan, you’ll be billed $50.40 ($7.20 per user) at the start of the following month. Charges adjust based on the number of accounts in use.

Prorated Payments: If you add or remove users during a month, payments are prorated. For example, adding a user on April 1 and removing them on April 15 will result in a charge for only half a month of service for that user.

Advance Payments: You can opt to pay in advance for your subscription by adding credit to your account, instead of making monthly payments. For more information, visit the "Make a manual payment or pay early" section.

Annual/Fixed-Term Plan

The Annual/Fixed-Term Plan works well for organizations with a constant or growing workforce.

Commitment Duration: You must subscribe for at least one full year, with the option to commit to multiple years for Google Workspace or Cloud Identity Premium.

Price Flexibility: The cost of the plan depends on the number of user licenses you purchase. If your team size increases, you can buy additional licenses, which will raise the price. Reductions in licenses can only be made at the end of the contract during renewal..

Early cancellation: If you cancel before the renewal date, you'll be charged a commitment cancellation fee for the remaining balance of your contract. No refunds are provided for cancellations made during the commitment term.

Subscription payment: Typically, payment is made annually upfront. However, in some cases, you can opt to pay monthly for part of the commitment. Billing options depend on your region, the type of subscription, and the purchase method.

User Licenses: With the Annual/Fixed-Term Plan, you commit to a specific number of licenses. You can add or remove accounts within this limit, but the number of licenses or the subscription price cannot be reduced until the renewal period.

You can’t transfer licenses between Google service accounts—for example, from one Google Workspace account to another.

Subscription Upgrade: You can upgrade your subscription at any time. If you are on an Annual/Fixed-Term Plan with yearly payments, upgrading requires switching to monthly payments. You'll receive a prorated credit for any remaining balance from your annual payment for the current subscription.

Subscription Downgrade: Downgrades are only possible after switching from the Annual/Fixed-Term Plan to a Flexible Plan.

Subscription cancellation: To cancel your subscription without incurring a penalty, you must wait until the end of your Annual/Fixed-Term contract. If you cancel before the end of your contract, you are still obligated to pay the full amount of your commitment. Any unpaid balance will be charged to your account.

Payment Calculation for Annual/Fixed-Term Plan

• Annual Payments: For an Annual/Fixed-Term Plan with annual payments, you are billed upfront for the entire year, typically at the end of the first month of your billing cycle..

• Monthly Payments: If you choose monthly payments, you pay at the beginning of each month. If you sign up in the middle of a month, you will make:

  
  

  • A prorated payment for the first partial month

  • Full payments for months 2–11

  • A prorated payment for the partial 12th month

• Time Zone for Billing: Google uses Pacific Time (PT) to determine the start date of your Annual/Fixed-Term Plan, regardless of your local time zone.

• Advance Payments: If the option for annual billing isn't available for the Annual/Fixed-Term Plan, you can still pay for the entire commitment upfront by adding credit to your account, rather than making monthly payments.

• Adding Licenses: If additional user licenses are purchased after the initial commitment, they are billed on a prorated basis. For example:

• Multi-year plans: For details about multi-year plans, contact a Google Sales representative.

Switching Plans

From Annual/Fixed-Term to Flexible Plan: You can change from the Annual/Fixed-Term Plan to the Flexible Plan during your free trial or at the time of your subscription renewal.

From Flexible to Annual/Fixed-Term Plan: You can switch from the Flexible Plan to the Annual/Fixed-Term Plan at any time through the Admin console. This switch requires an upfront annual payment.

Comparing Annual & Flexible Payment Plans

After knowing about both Flexible Plan and Annual Plan, lets compare each other side-by-side:

Annual Plan payment options vary depending on your region, your subscription type, and how you purchased your subscription.

Which plan to choose?

The Flexible Plan will be best for you, if you have:

1. Variable/small/limited workforce.

2. High employee turnover

3. Short term and achievable goals

With the Flexible Plan, you can remove user accounts at any time and your next monthly payment will decrease accordingly.

The Annual/Fixed-Term Plan will be best for you:

1. If you have large number of employees

2. If your team is growing

Within larger organizations, the benefits of the annual plan will be significantly more prominent and appealing. If your workforce is going to continue growing anyway, there is a low chance of not having enough licenses too. The Annual/Fixed-Term Plan offers the lowest per user per month price compared to the Flexible Plan.