Google Workspace vs Microsoft 365 for Government Contractors: Which Is Better?

Summary:

Microsoft 365 is the only platform that provides an end-to-end solution for organizations requiring compliance with DFARS 7012, CMMC, and ITAR. 

• Google Workspace can be CMMC compliant but requires additional configurations and third-party tools to meet compliance requirements.

• Google Workspace may seem cheaper upfront but often results in higher total costs due to required add-ons for compliance.

• ITAR compliance with Google Workspace is possible but demands extra encryption, key management, and Google Assured Workloads.

• DFARS 7012 compliance is limited without Google Assured Workloads, impacting incident response and forensic analysis capabilities.

• Microsoft 365 Government (GCC, GCC High) provides built-in compliance for DFARS, CMMC, and ITAR with end-to-end security.

• Microsoft 365 reduces cost and complexity by eliminating the need for multiple third-party compliance and security tools.

For contractors handling Controlled Unclassified Information (CUI) choosing the right productivity suite is more about security and compliance than convenience. 

Government contracts are filled with clauses that mandate the implementation of minimum-security baselines to protect different data types – Defense Federal Acquisition Regulation Supplement (DFARS) 7012, 7019, 7020, 7021, and CMMC requirements.

CMMC, DFARS, and ITAR regulations introduce security and data protection requirements, which means it's critical to understand whether Google Workspace or Microsoft 365 Government are best suited to meet these regulations. 

So the first question we must ask is, "Is Google Workspace CMMC Compliant?" 

Is Google Workspace CMMC compliant? 

Google Workspace can technically be CMMC “compliant” with a major caveat – you'll need to evaluate the third-party or add-on implementations that the platform requires to meet current compliance requirements.

Here’s what you need to know: 

Google Workspace’s ability to satisfy the requirements of NIST SP 800-171 and CMMC 2.0 was evaluated by a Certified 3rd Party Assessment Organization (C3PAO). As a result of that assessment, a Google Workspace implementation was awarded a letter of attestation by the C3PAO which documented the platform's ability to satisfy NIST 800-171 and CMMC 2.0 requirements.  

Additionally, in 2022, Google Workspace announced that it earned a DoD Impact Level 4 (IL4) authorization. However, without deploying Google Assured Workloads, organizations are limited to a DoD IL2 environment. 

Key Limitations of Google Workspace for Compliance: 

• Google Workspace lacks built-in compliance features. Google Workspace relies heavily on third-party integrations and additional security tools to meet government requirements. 

• Google Workspace's data security model isn't built around endpoint security. Google Workspace security is designed primarily around browser-based access and cloud storage, which may require additional endpoint security solutions for compliance. 

• Google Workspace requires additional services to accommodate ITAR data. Prior to December 26, 2019, Google advised against organizations with ITAR data using their platform. Since then, Google Workspace has implemented additional compliance measures, including Client-Side Encryption (CSE) and Assured Workloads. However, organizations handling ITAR data must still manage encryption, key management, and data residency themselves to ensure compliance.  

• • For reference, see Google Workspace’s Terms of Service Restriction 3.3: “Customer will not, and will not allow End Users to [...] access or use the Services [...] for materials or activities that are subject to the International Traffic in Arms Regulations (ITAR) maintained by the United States Department of State” 

• Google Workspace's third-party add-ons create significant administrative burden. Compliance management in Google Workspace often requires extensive manual configuration and monitoring, whereas Microsoft 365 automates many compliance processes. Additionally, the required integration of third-party solutions into Google Workspace adds a significant administrative burden to the Workspace implementation. 

Cost Considerations 

While Google Workspace may appear to be a cost-effective option at first glance ($30 per user/month), additional security tools and compliance add-ons often make it more expensive in the long run. Many organizations end up purchasing third-party tools to fill gaps in security, data retention, and identity management. 

For example, with Google Workspace, you’d have to pay extra to third-party vendors for security and compliance features like Cloud Access Security Broker (CASB), SSO for on-prem apps, threat trackers, attack simulation training, sensitivity labeling, compliance management, endpoint DLP, information barriers, desktop client apps, records management, and more. 

These costs add up quickly, and you’ll find yourself cobbling together a pretty expensive stack of solutions.

Microsoft 365 is the Government-Ready Solution 

Microsoft 365 Government (specifically GCC and GCC High) is built specifically to meet compliance requirements for DFARS, CMMC, and ITAR.

Advantages of Microsoft 365 for Compliance: 

• It's built natively for security and compliance. Built-in compliance features such as Data Loss Prevention (DLP), Insider Risk Management, eDiscovery, and Advanced Threat Protection reduce the need for third-party security tools. 

• It provides dedicated government cloud offerings. Microsoft 365 GCC High and DoD clouds use restricted access controls that align with U.S. government security standards. 

• It offers end-to-end protection. Microsoft integrates Zero Trust security across identity, endpoints, cloud apps, and information protection. 

• It has automated compliance tools. Features like sensitivity labeling, records management, and compliance monitoring significantly reduce administrative overhead. 

• It has a lower total cost of ownership (TCO). While the initial licensing cost may seem higher, Microsoft 365 reduces the need for additional security tools, saving organizations money in the long run. 

Frequently Asked Questions 

Does Google Workspace cost less than Microsoft 365? 

Google’s upfront pricing may be lower, but you'll often pay more when you factor in required add-ons and security tools. Microsoft 365 enables vendor consolidation, eliminating the need for multiple security and compliance providers. 

Is Google Workspace’s security good enough? 

While Google Workspace has security features, its compliance readiness does not match Microsoft 365’s government-specific offerings. ITAR compliance in Google Workspace requires costly add-ons with limited capability.

Which one is more secure – Google or Microsoft? 

No company is immune to attacks. Unlike other competitors who focus mainly on identity, Microsoft’s Zero Trust covers multiple pillars, including data, multi-cloud, multi-operating system, and multi-browser environments. Microsoft 365 prevents billions of attacks every year and has a multi-layered security approach beyond identity management. 

Is transitioning data to Google Workspace seamless? 

Migrating to a secure, compliant cloud is more than just moving data. It requires planning for service transitions, eDiscovery, litigation holds, and records retention—areas where Microsoft 365 has a clear advantage. 

The Bottom Line 

Microsoft 365 is the only platform that provides an end-to-end solution for organizations requiring compliance with DFARS 7012, CMMC, and ITAR.  

Unlike Google Workspace, which depends on third-party tools and manual configurations, Microsoft delivers native security, automation, and dedicated government cloud environments that meet and exceed regulatory requirements. 

For those who are serious about compliance, security, and efficiency, Microsoft 365 Government is the clear choice.

If you'd like to learn more about Microsoft 365 Government fill out the form below to speak with one of our experts.