Price increase set to affect Google Workspace users in April 2023

With the G Suite to Google Workspace transition, Google has announced pricing updates that will affect some users starting April 11, 2023. In addition AppDirect Google customers that have not transitioned from G Suite, and are not in a contract will be transitioned to Google Workspace.

The updates include a price increase for customers who have the flexible payment plan, also known as “month to month,” as well as a specific increase on Google Workspace Enterprise Standard edition and Vault add-on pricing. The increase will not affect organizations with 10 users or less until January 2024.

Please check out the FAQs below for more information. If you have questions, you can also contact your CSM.

Google Price Increase FAQs

What impact will the Google Price increase have on AppDirect customers?

AppDirect Google Workspace customers will be subject to the upcoming Google initiated price increase as on April 11, 2023. All requests for an annual / fixed term must be finalized by April 7, 2023

G Suite Customers not in committed contract will be transitioned to the appropriate corresponding Google Workspace edition.

Who will be affected?

1. Flex customers - Customers who are currently not in an annual/fixed term commitment, who pay monthly on a “flex” term

2. Enterprise Standard customers - Customers who have the Enterprise Standard edition

3. G Suite customers - Customers who are still on a G Suite edition without a contracted commitment

What will be the increased Price?

Customers on a flex arrangement for all editions except Enterprise Standard will see a 20% increase.

Enterprise Standard will increase to $23 in fixed/ term commitments and $27.6 in flex

When will these changes take effect?

Not all customers will transition on the same date. It depends on several things including seat count, plan type, any applied discounts, and other factors. This update will roll out in phases based on those factors

• Customers with an annual / fixed-term commitment plan will not be subject to price changes for the duration of their subscription.

• For existing flex subscriptions, updated pricing will go into effect starting April 11, 2023

Which products are included for the price changes?

The following products are included:

• Google Workspace Business Starter

• Google Workspace Business Standard

• Google Workspace Business Plus

• Google Workspace Enterprise Essentials

• Google Workspace Enterprise Starter

• Google Workspace Enterprise Standard

• Google Workspace Enterprise Plus

• Google Workspace Frontline

• Archived User

• Cloud Identity premium

• Google Vault

• AppSheet Core

• AppSheet Enterprise

• Premium Support

• Enhanced Support

• Google SIP Link

Applicable products for pricing adjustments are subject to change. New product launches will be priced based on the same principles (lowest per user pricing for Annual / Fixed-Term plans as compared to Flexible plan).

Why is Google updating monthly billing (flexible plan) prices?

Per Google, they are aligning Google Workspace’s pricing model with the industry-standard approach, which provides a discounted price to customers that commit to a yearly contract.

The updated prices reflect the more than 300 new features delivered in 2022 alone including:

• New capabilities to help you connect with your customers including appointment scheduling, Email marketing in Gmail, and soon eSignature support.

• New features in Meet and Chat that make it easier for hybrid workers to connect, create, and collaborate from anywhere.

• New capabilities in Google Docs, Slides, and Sheets that help people and teams create together and get more done.

• New built-in, AI-powered data and threat protection capabilities including automated classification and trust rules in Drive and phishing and malware protections in Calendar and Drive.

Why is the price of Enterprise Standard going up?

Enterprise Standard has been improved to accommodate larger organizations with security and collaboration controls. New zero trust control, data loss prevention, endpoint management, identity management, and collaboration features launched to Enterprise Standard in 2022.

• Use a new enterprise certificate condition to set context-aware access rules for company-managed devices

• New intelligent, content based detection and additional regional security detectors for data loss prevention

• View more information on email delegate activity in the Security Investigation Tool

• Use Context-Aware Access to help protect Admin console access

• Create dynamic groups by querying custom user attributes

• Export log data in near-real time to BigQuery

• Data Loss Prevention for Drive helps protect sensitive data when users upload files to external Google Forms, now generally available

• Sync Apple DEP and Google Mobile Device Management servers on demand

• Data loss prevention for Google Chat now generally available

• Trust rules in Google Drive now generally available

• More ways to prevent data exfiltration on iOS devices

• Live stream Google Meet events via YouTube

Does this update impact current contracts/ Discounts?

No. All current discounts remain in place until they expire.

Does this impact G Suite customers who have yet to transition to Google Workspace from G Suite?

Yes. All G Suite customers not in a fixed-term contract will be transitioned. G Suite customers in contract will be subject to the new pricing guidelines at their renewal as of January 2024

Will customers that recently transitioned from legacy G Suite to Google Workspace see a price increase?

Customers who are on flex will be subject to the increase. Customers who transitioned with a discount will be eligible for price increase after the discount period ends.

G Suite to Google Workspace transition discounts will be honored until they expire and customers with these discounts will not see a price increase specific to these changes. In addition, if a customer has a subscription discount that is renewing in 2023, they will only be subject to a price increase for that subscription starting in January 2024 if applicable.

If Google Workspace flexible plan customers switch to a commitment plan before April 7, 2023, can they maintain current pricing until their contract renewal?

Yes. Changes to subscriptions starting April 11, 2023 will be considered ‘new’ subscriptions, and customers will be subject to updated pricing.