Shared Hosting Email vs. Google Workspace / Microsoft 365: What’s the Difference?

If you run a business or manage a website, you’ve probably encountered the choice between using email that comes free with your web hosting (shared hosting email) and opting for dedicated email services like Google Workspace (formerly G Suite) or Microsoft 365 (formerly Office 365). Though they both let you send and receive email from your domain, they’re very different under the bonnet. Here’s how they compare.

1. Where Your Email Is Stored

Shared Hosting Email

When you use the email bundled with your web hosting plan, your email accounts are stored on the same server as your website. It’s essentially “shared” space, where many customers’ sites and mailboxes coexist on one physical server.

Google Workspace / Microsoft 365

These services host your email in dedicated cloud infrastructure managed by Google or Microsoft. Your email is entirely separate from your website hosting.

2. Reliability & Uptime

Shared Hosting Email

Reliability can vary. Because the email service shares resources with websites, it’s more vulnerable to server issues, spikes in traffic, or other customers’ activities, such as the sending of spam causing a whole server to be blacklisted. If your hosting server goes down, your email may go offline too.

Google Workspace / Microsoft 365

These services have world-class infrastructure and data centres distributed globally. They offer high uptime guarantees (often 99.9% or better), ensuring your email stays online even if your website server has problems. It should, however, be noted that these services are not without occasional issues, which tend to make the news given the scale of their operations and the number of users affected.

3. Storage Limits

Shared Hosting Email

Email storage typically comes from your overall hosting storage quota. For example, if your hosting plan has 10 GB of storage, that space is shared between your website files and all your email accounts. This can become limiting as your inbox grows or if certain users carry a lot of email. Exceeding the overall quota can cause problems for your website or event take it offline.

Google Workspace / Microsoft 365

These services offer per-user mailbox storage (e.g., 30 GB, 50 GB, or even into terabytes, depending on the plan). Your email storage is entirely separate from your website hosting so heavy usage will not affect your website, but costs may be significant if substantial storage is required.

4. Spam Filtering & Security

Shared Hosting Email

Basic spam filtering is usually included but may not be as sophisticated. Security features are more limited, and shared servers can sometimes be blacklisted if other customers send spam, affecting your deliverability.

Google Workspace / Microsoft 365

These platforms invest heavily in advanced spam filtering, virus scanning, and phishing protection. Your emails are less likely to end up in spam folders, and deliverability is generally excellent.

5. Features & Collaboration Tools

Shared Hosting Email

The email service included with a typical shared hosting account will cover basic email functionality: send, receive, forward, and webmail access. Message rules and filters are likely to be included too. Additional features will vary, where available, by provider.

Google Workspace / Microsoft 365

These are full productivity suites, including:

  • Calendar
  • Contacts
  • Cloud storage (Drive or OneDrive)
  • Real-time collaboration on documents, spreadsheets, and presentations
  • Video meetings (Google Meet, Microsoft Teams)

They’re built for business use, remote work, and collaboration.

6. Cost

Shared Hosting Email

Usually included “free” with your hosting plan, making it a low-cost option.

Google Workspace / Microsoft 365

Charged per user per month. At the time of writing (July 2025), Google Workspace prices range from £5.90 to £29.50 per user per month. Microsoft 365 for business prices range from £4.60 to £16.90 per user per month. The cost depends heavily on the plan and features and may require commitment to an annual contract to obtain lower prices.

So, Which Should You Choose?

Shared hosting email is fine for:

  • Personal projects
  • Small websites with minimal email needs
  • Businesses on a tight budget

Google Workspace or Microsoft 365 is worth considering if:

  • Email is crucial for your business
  • You need reliability, security, and scalability
  • You want professional collaboration tools
  • You want better deliverability for client communications

For most growing businesses, the investment in a dedicated cloud email service quickly pays off in professionalism, security, and peace of mind.

Conclusion

While shared hosting email works for basic needs, modern businesses increasingly rely on the robust tools and reliability offered by platforms like Google Workspace and Microsoft 365. Consider your business size, budget, and how critical email is to your daily operations to make the right choice.