If you only need reliable email on your own domain, standard email hosting is usually the simplest and most affordable choice. If your team works in shared documents, calendars and video meetings all day, Google Workspace or Microsoft 365 can be better value, because email comes bundled with the tools you would otherwise pay for separately. The right answer depends on how your team works, not on which option is "best".
This guide compares the three honestly so you can choose with confidence.
What each option is
Email hosting
Mailboxes on your own domain, hosted by a web or email host and usually managed from a control panel such as Plesk. You read mail in webmail or any mail app (Outlook, Apple Mail, Thunderbird, phone apps) using IMAP and SMTP. It focuses on email and does it well.
Google Workspace
Google's business suite: Gmail on your own domain, plus Google Drive, Docs, Sheets, Calendar, Meet and an admin console. Everything runs in the browser and Google's apps.
Microsoft 365
Microsoft's business suite: Exchange Online email on your own domain, plus Outlook, Teams, OneDrive, SharePoint and, on many plans, the desktop Office apps like Word and Excel.
Side-by-side comparison
| Email hosting | Google Workspace | Microsoft 365 | |
|---|---|---|---|
| Email on your domain | Yes | Yes | Yes |
| Works with any mail app | Yes (IMAP/SMTP) | Yes, best in Gmail | Yes, best in Outlook |
| Shared calendars and contacts | Basic or none, depending on provider | Yes | Yes |
| Documents and cloud storage | No | Yes (Drive, Docs) | Yes (OneDrive, SharePoint, Office) |
| Video meetings and chat | No | Yes (Meet, Chat) | Yes (Teams) |
| Admin console and device policies | Control panel for mailboxes | Yes, extensive | Yes, extensive |
| Billing | Often in rand from local hosts | Check their current pricing | Check their current pricing |
| Pricing model | Often per plan or per mailbox | Per user | Per user |
| Learning curve | Low | Low to medium | Medium |
When email hosting is the better choice
- You mainly need email. If documents already live in an accounting system, a shared drive or a tool you like, paying per user for a full suite may be unnecessary.
- You have role addresses and occasional users. Aliases and forwarders cover
info@andaccounts@without paying per user. - You want email alongside your website. Managing site, DNS and mailboxes in one place is convenient, and one supplier handles it all.
- You prefer rand billing and local support. A local host can invoice in rand with VAT, and support works in your time zone.
- Your team already owns desktop Office licences or uses other productivity tools.
When Google Workspace is the better choice
- Your team collaborates in real time on documents and spreadsheets.
- You like Gmail's interface and search and want it on your own domain.
- You want calendars, video meetings and file sharing managed centrally with the email.
- You need strong admin controls such as enforcing two-step verification or managing staff devices.
When Microsoft 365 is the better choice
- Your business runs on Word, Excel and Outlook, and you want the desktop apps licensed per user.
- You use Teams for chat and meetings, or clients expect you to.
- You need Exchange features like shared calendars, room booking and rich shared mailboxes.
- You have IT support or a partner who manages Microsoft environments and security policies.
Cost - compare the whole picture
We will not quote suite prices here because they change and differ by plan; check each provider's current pricing. When you compare, look at:
- Cost per user per month, multiplied by everyone who needs a login, including part-time staff.
- Currency. Check which currency you will be billed in; foreign-currency billing can bring card fees and exchange rate swings. See why hosting billed in rand matters.
- VAT invoices for your bookkeeping.
- What you would otherwise pay for. If a suite replaces separate subscriptions for documents, storage and meetings, it may save money overall.
- Storage needs. Mailbox size limits vary by plan.
POPIA and where your data lives
Whatever you choose, your email provider processes personal information on your behalf and acts as your operator under POPIA. Section 21 requires a written contract that obliges the operator to protect that information. Global suites store data in their own international data centres; if your email is hosted outside South Africa, the cross-border transfer rules in section 72 apply. Large providers publish their data processing terms, so read them. Local email hosting keeps data in South Africa, which some businesses prefer. For specific compliance questions, get professional advice.
Can you mix and match?
Yes. Common combinations:
- Email hosting for mail, plus a separate file-sharing or meeting tool your team already uses.
- A suite for staff who collaborate, and plain mailboxes for others, though mixing providers on one domain requires careful routing and is best avoided unless you have technical help.
- Website on one host, email on a suite. Very common; your website uses A or CNAME records and email uses MX records, so each can live with a different provider.
Switching later
Because email lives on your own domain, you are not locked in. Moving between email hosting and a suite, in either direction, means creating mailboxes at the new provider, copying mail across and updating DNS. Our guide on how to migrate email to a new host explains the steps, and business email in South Africa covers why your own domain matters in the first place.
Frequently asked questions
Is Google Workspace or Microsoft 365 better than email hosting?
Not in general. They are better when you will actually use the documents, storage, meetings and admin features. If you only need email, standard email hosting is often simpler and cheaper.
Can I use Outlook with standard email hosting?
Yes. Outlook connects to standard email hosting using IMAP and SMTP. Some Exchange-only features, such as certain shared calendar functions, will not be available.
Can I keep my website with my host and use Microsoft 365 for email?
Yes. Point your MX, SPF, DKIM and autodiscover records to Microsoft 365 and keep your website's A or CNAME records pointing to your host.
Does my email need to be stored in South Africa for POPIA?
POPIA does not ban storing personal information abroad, but section 72 sets conditions for transfers outside South Africa. Many businesses meet them with global providers; take advice if you are unsure.
Which is easiest for a very small business?
For one to five people who mainly send and receive email, email hosting is usually the easiest to set up and manage. If those same people collaborate heavily on documents, a suite may be worth it.
Just need dependable email on your domain, billed in rand? See NewHost email hosting plans, or contact us if you want help deciding.