Goodbye Microsoft 365: 10 alternatives that cost 86% less

Introduction

It was 8:00 AM on January 22nd, 2026 when thousands of businesses worldwide discovered they couldn't work. Microsoft 365 had completely crashed for over 10 hours, leaving users without access to Outlook, Teams, and OneDrive. "You've got to be kidding me! We haven't received any external emails," wrote a desperate user on Reddit. "How can this happen in 2026?"

But the story doesn't end there. Just days after the outage, Microsoft confirmed what many suspected: price increases of up to 33% taking effect in July 2026. For businesses already questioning their dependence on a single platform, this was the last straw.

In this article, we'll show you the 10 best Microsoft 365 alternatives in 2026, with exact pricing, detailed comparisons, and practical migration guides. Whether you're looking to save money, gain privacy, or simply reduce your dependence on a single vendor, you'll find the perfect solution here.

The perfect storm hitting Microsoft 365

The global outage of January 22nd: 10 hours of chaos

On January 22nd, 2026, Microsoft 365 experienced one of the most severe outages in its history. For over 10 hours, critical services like Outlook, Teams, OneDrive, and Exchange were completely inaccessible to millions of users worldwide.

The impact was devastating:

• Thousands of businesses paralyzed without ability to send/receive emails
• Work teams without access to video calls or corporate chat
• Critical documents locked in OneDrive
• Economic losses estimated at millions of dollars

"No joke, how can this happen in 2026?" asked one user on social media. Another commented: "Outlook has been down for MORE THAN AN HOUR. Where's your 99.9% SLA, Microsoft?"

The irony is cruel: businesses paying for a "enterprise" high-availability service discovered that a single point of failure can paralyze their entire operation.

Price increases of up to 33% in July 2026

As if the outage wasn't enough, Microsoft announced significant price increases taking effect on July 1st, 2026:

• Microsoft 365 Business Basic: from $6 to $7/user/month (+16.7%)
• Microsoft 365 Business Standard: from $12.50 to $14/user/month (+12%)
• Microsoft 365 Business Premium: from $22 to $25/user/month (+13.6%)
• Microsoft 365 E3: from $36 to $41/user/month (+13.9%)
• Microsoft 365 E5: from $57 to $64/user/month (+12.3%)

For a company with 100 employees on the Business Standard plan, this means going from $15,000 per year to $16,800: an increase of $1,800 annually.

But here's the most concerning fact: according to Microsoft, these increases are to "reflect the added value" of new AI features. The problem is that many of those features are optional and cost extra. Microsoft Copilot, for example, has an additional cost of $30/user/month.

The context: SaaS inflation of 12.2%

Microsoft isn't alone. According to the SaaS Pricing Index 2024, cloud software prices have increased an average of 12.2% annually since 2019. But Microsoft 365 is on the list of the most aggressive:

• Salesforce: +9% average annually
• Adobe Creative Cloud: +14% in 2023
• Microsoft 365: +13% average in 2026
• Zoom: +10% on enterprise plans

According to Gartner, "SaaS price fatigue" is one of the main migration drivers in 2026. Companies are fed up with paying more for the same service.

Now, the good news: real, proven, and cheaper alternatives exist. Let's see the 10 best.

The 10 best Microsoft 365 alternatives in 2026

1. Google Workspace: The most obvious alternative (and why it works)

Price: from $6/user/month (Business Starter) to $18/user/month (Business Plus)

Services included:

• Professional Gmail (custom email)
• Google Drive (cloud storage)
• Google Docs, Sheets, Slides (office suite)
• Google Meet (video calls up to 500 participants)
• Google Calendar, Chat, and Spaces

Ideal for: Teams already using personal Gmail, companies prioritizing real-time collaboration, startups and SMBs.

Pros:

• Real-time collaboration superior to Microsoft (multiple users editing simultaneously)
• More intuitive and modern interface
• 99.9% uptime SLA historically more reliable
• Perfect integration with Android and Google ecosystem
• No local installations necessary (100% cloud)

Cons:

• Advanced Excel features not available in Sheets
• Email migration can be complex
• Less compatibility with Office macros
• Very traditional companies may resist the change

Migration: Google offers free tools to migrate emails, calendars, and documents from Microsoft 365. Estimated time: 2-4 weeks for a 50-employee company.

2. Zoho Workplace: Save up to 60% without sacrificing features

Price: from $3/user/month (Standard) to $9/user/month (Professional)

Why it's the best savings: Zoho Workplace costs less than half of Microsoft 365 and offers virtually the same features. For a 100-employee company, this means saving $13,200 per year vs. Microsoft Business Standard.

Services included:

• Zoho Mail (corporate email)
• Zoho Writer, Sheet, Show (office suite)
• Zoho WorkDrive (storage up to 1TB)
• Zoho Meeting (video calls up to 250 participants)
• Zoho Cliq (corporate chat)

Ideal for: Cost-conscious SMBs, companies looking to escape the Microsoft/Google duopoly, organizations valuing privacy.

Pros:

• Unbeatable price (60% cheaper than Microsoft)
• No data sales to third parties (strict privacy policy)
• Complete suite without hidden costs
• Quality technical support included
• Integrated Zoho ecosystem (CRM, projects, HR)

Cons:

• Less known brand (may be difficult to convince stakeholders)
• Less polished interface than Google/Microsoft
• Fewer third-party integrations
• Moderate learning curve

3. LibreOffice + Nextcloud: The 100% free and open source option

Real cost: $0 (software) + own hosting or $5-15/user/month (managed Nextcloud)

Why it's revolutionary: This combination gives you total control over your data without depending on any tech giant. It's the preferred option of European governments and privacy-conscious organizations.

Components:

• LibreOffice: Complete office suite (Writer, Calc, Impress)
• Nextcloud: Storage, sync, calendar, contacts, video conferencing
• Collabora Online or OnlyOffice (optional): Collaborative editing in browser

Real success stories:

• Barcelona City Council: Migrated 1,000 computers to LibreOffice, saving €600,000 annually
• French Government: 500,000 employees using LibreOffice + Nextcloud
• ICC (International Criminal Court): Migrated to OpenDesk (LibreOffice + Nextcloud + Thunderbird)

Ideal for: Large organizations with IT team, governments, NGOs, companies with strict privacy requirements.

Pros:

• Minimal cost (only hosting if you manage it yourself)
• Total data control (no third-party dependence)
• No vendor lock-in (changing providers is easy)
• Compatible with Microsoft Office formats
• GDPR compliant and meets European privacy regulations

Cons:

• Requires technical expertise to maintain
• No official support (community or hire third parties)
• Less modern interface than commercial competitors
• Collaborative editing less smooth than Google Docs

4. Proton Suite: When privacy comes first

Price: $9.99/user/month (Proton for Business)

Why it stands out: Proton is the option for businesses that take privacy very seriously. All data is end-to-end encrypted, not even Proton can read it.

Services included:

• Proton Mail (encrypted email)
• Proton Calendar (encrypted calendar)
• Proton Drive (encrypted storage 500GB-1TB)
• Proton VPN (unlimited VPN for everyone)
• Proton Pass (password manager)

Ideal for: Lawyers, journalists, activists, consultancies, companies in regulated sectors (healthcare, finance).

Pros:

• End-to-end encryption on everything (email, files, calendar)
• Based in Switzerland (strict privacy laws)
• No personal data required to register
• Modern and easy-to-use interface
• Professional VPN included at no extra cost

Cons:

• No integrated office suite (you'll need LibreOffice or another)
• No native video calls
• Fewer integrations than Microsoft/Google
• Higher price than Zoho (though includes VPN)

5. ONLYOFFICE Workspace: Open source with professional look

Price: $5/user/month (cloud) or free (self-hosted)

Why it surprises: ONLYOFFICE has the interface most similar to Microsoft Office of all open source alternatives. If your team hates change, this is your option.

Services included:

• Document, spreadsheet, and presentation editors
• Storage and document management
• Integrated CRM (in cloud version)
• Chat and video conferencing (with integrated Jitsi)
• Project and task management

Ideal for: Companies wanting open source without sacrificing UX, teams accustomed to Office interface.

Pros:

• Interface almost identical to Microsoft Office (easy transition)
• Excellent compatibility with .docx, .xlsx, .pptx formats
• Cloud or self-hosted option
• CRM included (added value)
• Real-time collaborative editing

Cons:

• Smaller community than LibreOffice
• Free version requires technical knowledge
• Some advanced Excel features not supported
• Fewer third-party integrations

6. Slack + Google Drive: Communication better than Microsoft Teams

Price: $8.75/user/month (Slack Pro) + $6/user/month (Google Workspace Starter) = $14.75/user/month

Why it works: Many companies discover that Microsoft Teams is the most hated part of M365. Slack offers an infinitely superior communication experience.

When to choose this combo:

• Your team already uses and loves Slack
• You prioritize asynchronous communication over email
• You need integrations with 2,000+ apps
• Remote or hybrid teams

Slack pros:

• Better UX than Teams (superior search, clear threads)
• 2,000+ integrations (Jira, Trello, GitHub, etc.)
• Powerful workflows and automations
• Huddles (audio drop-in) more natural than formal video calls

Cons:

• More expensive than using only Microsoft or Google
• Two separate bills (Slack + Google)
• No integrated office suite (you need to add)

7. Dropbox Business / Box: Storage without strings attached

Price:

• Dropbox Business: $15/user/month (3TB)
• Box Business: $20/user/month (unlimited storage)

When it makes sense: If the only thing you really use from Microsoft 365 is OneDrive, why pay for email and office suite you don't need?

Ideal for:

• Creative teams (design, video, architecture)
• Companies with heavy files
• Organizations already having email with another provider

Dropbox pros:

• Fastest file sync on the market
• Simple and familiar interface
• Native integration with Adobe tools
• Version recovery up to 180 days

Box pros:

• Unlimited storage (Business Plus plan)
• Better for large enterprises (governance, compliance)
• Enterprise integrations (Salesforce, NetSuite)
• Regulatory compliance (HIPAA, FedRAMP)

Cons:

• No email, calendar, or integrated chat
• More expensive than Google Drive or OneDrive alone
• You'll need other tools to complete the stack

8. monday.com / ClickUp: Project management replacing SharePoint

Price:

• monday.com: from $12/user/month (Standard)
• ClickUp: from $7/user/month (Unlimited)

Why consider them: Many companies discover that what they really needed was modern project management, not another generic productivity suite.

Services included:

• Project and task management
• Automations and workflows
• Dashboards and reports
• Collaborative docs (ClickUp)
• File storage
• Integrations with 1,000+ apps

Ideal for: Marketing teams, agencies, service companies, product departments.

ClickUp pros:

• True all-in-one (projects + docs + chat + goals)
• More competitive pricing than Asana or monday
• Extreme customization
• Generous free plan

monday.com pros:

• More intuitive visual interface
• Automations easier to configure
• Better for non-technical teams
• Professional templates included

Cons:

• No integrated corporate email
• Doesn't completely replace Microsoft 365
• Moderate learning curve

9. Bitrix24: The all-in-one suite (with CRM included)

Price: $49/month (up to 5 users) or $99/month (unlimited)

The surprise: Bitrix24 includes professional CRM for free, which Microsoft charges $65/user/month extra (Dynamics 365).

Services included (yes, ALL of this):

• Complete CRM (contacts, deals, pipeline)
• Corporate email
• Chat and video conferencing
• Project and task management
• 1TB-10TB storage
• Website builder
• Telephony (integrated VoIP)
• HR (time, vacation, payroll)

Ideal for: Small businesses needing CRM + productivity, sales teams, growing companies.

Pros:

• Professional-level CRM included
• Flat pricing for unlimited users ($99/month plan)
• Complete suite without extra integrations
• Integrated telephony (saves on other services)

Cons:

• Overwhelming interface (too many features)
• Steep learning curve
• Support could be better
• Less known in English-speaking markets

10. Hybrids: Combine the best of each world

Approach: You're not obligated to choose a single platform. Many successful companies use the best from each category.

Examples of popular combos:

"Agile Startup" combo (~$20/user/month):

• Gmail + Google Workspace Business Starter ($6)
• Slack Pro ($8.75)
• Notion Team ($10)
• Total: $24.75/month vs. $25 Microsoft Business Premium

"Total Privacy" combo (~$15/user/month):

• Proton Mail Business ($9.99)
• LibreOffice (free)
• Managed Nextcloud ($5)
• Total: $14.99/month

"Maximum Savings" combo (~$10/user/month):

• Zoho Workplace Standard ($3)
• ClickUp Unlimited ($7)
• Total: $10/month (60% savings vs. Microsoft)

When it makes sense:

• Your team values specializing in each area
• You prioritize "best-in-class" over "all-in-one"
• You have IT team that can manage multiple tools
• You want to avoid absolute vendor lock-in

Disadvantages:

• Greater management complexity
• Multiple bills and vendors
• Longer onboarding for new employees
• Possible integration issues

Price comparison: Microsoft 365 vs. Alternatives

Here's the complete table with annual savings for a 50-employee company:

Conclusion: Except for premium combos, all alternatives save between 29% and 86% vs. Microsoft 365 Business Standard.

Which alternative is right for you? Decision guide

If you prioritize maximum savings → Zoho Workplace or Bitrix24

• Zoho: If you need complete and professional suite
• Bitrix24: If you also need CRM
• Savings: 79-86% vs. Microsoft

If you prioritize privacy and control → Proton Suite or LibreOffice + Nextcloud

• Proton: If you want simplicity and extreme encryption
• LibreOffice + Nextcloud: If you have IT team and want total control
• Bonus: GDPR compliance guaranteed

If you prioritize familiarity → Google Workspace

• Smoothest transition from Microsoft
• Your team probably already uses personal Gmail
• Minimal learning curve
• Savings: 57%

If you prioritize specialization → Hybrid combos

• Slack (communication) + Google Drive (storage) + Notion (docs)
• Best of each category
• More expensive but maximum productivity

If you can't afford downtime → Google Workspace or Zoho

• Verifiable 99.9% uptime SLA
• Microsoft has had 3 major outages in 2025-2026
• Google has better historical track record

If your team is very technical → Open source (LibreOffice + Nextcloud)

• Total control and minimal costs
• Infinite customization
• Success stories: European governments, ICC

How to migrate from Microsoft 365: Practical guide

Real migration costs

According to Forrester Research, the total cost of migrating from Microsoft 365 includes:

Direct costs:

• Migration tools: $0-$5,000 (depends on volume)
• External consulting (optional): $50-$225/user
• Dual licenses (1-3 months): Cost of both platforms simultaneously

Indirect costs:

• Employee time: 10-20 hours/user in training
• Temporary productivity loss: 15-20% during 2-4 weeks
• Integration setup: $2,000-$10,000 depending on complexity

Total estimated: $50-$150/user for complete migration (companies 50-500 employees).

ROI: For a 100-employee company migrating to Zoho:

• Initial investment: $10,000
• Annual savings: $13,200
• Payback in 9 months

Typical timeline (6-12 months)

Phase 1: Planning (4-6 weeks)

• Current data audit
• Alternative platform selection
• Migration architecture design
• Pilot user identification

Phase 2: Pilot (4-8 weeks)

• Migrate 5-10% of users (early adopters)
• Test critical workflows
• Identify problems and friction
• Adjust migration plan

Phase 3: Phased migration (3-6 months)

• Migrate by departments or teams
• Intensive support during first weeks
• Maintain parallel access to Microsoft 365
• Continuous training

Phase 4: Microsoft deactivation (4 weeks)

• Verify all data is migrated
• Cancel Microsoft licenses
• Archive historical data

Automated migration tools

To migrate to Google Workspace:

• Google Workspace Migration Tool (free): Migrates email, calendar, contacts
• CloudM Migrate ($5-10/user): Complete migration including Teams, SharePoint
• SkyKick ($10-15/user): Specialized in enterprise migrations

To migrate to Zoho:

• Zoho Mail Migration Tool (free): Email, calendar, contacts
• Zoho Workdrive Importer (free): Files from OneDrive

To migrate to open source:

• Nextcloud Migration Tool: Imports files from OneDrive
• Thunderbird ImportExportTools: Migrates emails from Outlook
• LibreOffice Converter: Batch conversion of Office documents

Common problems and solutions

Problem 1: "Excel doesn't work the same in Google Sheets"

• Solution: Identify Excel power users and keep LibreOffice Calc installed locally for them
• Google Sheets is sufficient for 80% of users

Problem 2: "We have 10 TB of files in SharePoint"

• Solution: Incremental migration by folders
• Use tools like CloudM or SkyKick that maintain version history
• Consider archiving old data (move to cheap storage)

Problem 3: "Teams is integrated into all our workflows"

• Solution: First migrate to Slack/Google Chat and connect equivalent integrations
• Most apps have connectors for multiple platforms

Problem 4: "Team resistance to change"

• Solution: Early and transparent communication about the "why"
• Emphasize benefits (savings, more stability, better privacy)
• "Champions" program (early adopters who evangelize)
• Practical training (not just videos)

Is it worth staying on Microsoft 365?

Let's be fair: Microsoft 365 isn't bad. For some cases, it's still the best option.

When it makes sense to stay:

1. Deep integration with Windows/Active Directory

• If you use Azure AD and complex group policies
• Enterprise companies with Microsoft-heavy infrastructure
• Government and strict compliance requiring Microsoft tools

2. Excel/Access power users

• If your business depends on complex Excel macros
• Data analysis requiring integrated Power BI
• Critical Access databases

3. Enterprise contracts with discounts

• If you already have EA (Enterprise Agreement) contract with Microsoft
• Discounts exceeding 30% by volume
• Prohibitive exit fees

4. Highly regulated industries

• Sectors where Microsoft is the standard (government, defense)
• Compliance specifically requiring M365
• Audits expecting Microsoft tools

How to negotiate better prices with Microsoft:

Strategy 1: Timing

• Negotiate at Microsoft's fiscal quarter end (March, June, September, December)
• Account managers have pressure to close numbers

Strategy 2: Leverage

• Mention you're evaluating Google Workspace or Zoho
• Show real competitor quotes
• Ask for multi-year commitment discounts

Strategy 3: Bundling

• Negotiate Microsoft 365 + Azure + Dynamics together
• Bundles have better discount margins
• Ask for CSP (Cloud Solution Provider) pricing if buying through partner

Strategy 4: Non-profit or education

• If applicable, discounts are 75-90%
• Microsoft is generous with NGOs and universities

Typical achievable discounts:

• Companies 50-100 users: 10-15%
• Companies 100-500 users: 15-25%
• Companies 500+ users: 25-40%
• Government/education: 75-90%

FAQs

When does the Microsoft 365 price increase take effect?

The Microsoft 365 price increase takes effect on July 1st, 2026. The increases range from 12% to 16.7% depending on the plan. For example, Microsoft 365 Business Standard rises from $12.50 to $14/user/month (+12%), while Business Basic rises from $6 to $7/user/month (+16.7%). If you have an active annual contract, the increase applies when you renew after July 2026. Microsoft notified customers at least 60 days in advance.

How much does it cost to migrate from Microsoft 365?

Migration costs vary depending on company size and complexity. For companies with 50-500 employees, the typical total cost is $50-$150/user, including migration tools ($0-$5,000), optional consulting ($50-$225/user), dual licenses during transition (1-3 months), and training time (10-20 hours/user). However, ROI is fast: a 100-employee company migrating to Zoho recovers the investment in 9 months thanks to the 79% savings vs. Microsoft.

Which alternative is the cheapest?

The cheapest alternative is Bitrix24 with its Standard plan ($99/month for unlimited users), which equals $1.98/user/month for 50 employees, a saving of 86% vs. Microsoft 365 Business Standard. The second cheapest is Zoho Workplace Standard ($3/user/month), with 79% savings. If you have an IT team, the self-hosted LibreOffice + Nextcloud option can cost as little as $0-5/user/month, but requires technical expertise for maintenance.

Can I use open source alternatives in my company?

Yes, governments and large organizations are already doing it successfully. Barcelona City Council migrated 1,000 computers to LibreOffice saving €600,000 annually. The French government has 500,000 employees using LibreOffice + Nextcloud. The International Criminal Court (ICC) completely migrated to OpenDesk (LibreOffice + Nextcloud + Thunderbird). However, it requires trained IT staff for installation, maintenance, and support. If you don't have internal technical resources, it's better to opt for commercial alternatives like Google Workspace or Zoho that include professional support.

How can I negotiate a better price with Microsoft?

To negotiate discounts with Microsoft, follow these strategies: (1) Timing: negotiate at fiscal quarter end (March, June, September, December) when account managers have pressure to close sales. (2) Leverage: mention you're evaluating Google Workspace or Zoho and show real quotes. (3) Multi-year commitment: offer 2-3 year contracts in exchange for discount. (4) Bundling: negotiate M365 + Azure + Dynamics together. Typical discounts are: 10-15% for 50-100 users, 15-25% for 100-500 users, 25-40% for 500+ users.

Conclusion

The combination of the global outage on January 22nd and price increases of up to 33% in July 2026 has created the perfect moment to rethink your dependence on Microsoft 365.

The three best alternatives based on your use case are:

1. For maximum savings without sacrificing quality → Zoho Workplace ($3/user/month)

• 79% savings vs. Microsoft Business Standard
• Complete professional suite
• Privacy guaranteed

2. For smooth transition and reliability → Google Workspace ($6/user/month)

• 57% savings vs. Microsoft
• Superior real-time collaboration
• More reliable uptime SLA historically

3. For maximum privacy and total control → LibreOffice + Nextcloud (~$5/user/month)

• 64% savings vs. Microsoft
• Total control of your data
• No vendor lock-in

The time to act is now. The increases take effect in July 2026, giving you 5 months to evaluate, decide, and migrate before paying more for the same service.

Remember: migration takes 6-12 months including pilot, training, and phased migration. If you wait until July, you'll pay the new prices while migrating. Start your evaluation this week.

Which alternative will you try first? Most offer free trial periods of 14-30 days. You have nothing to lose by exploring.