Where it fits
Google Workspace provides finished collaboration software, including business email, documents, file storage and meetings. Administrators configure users, domains and access policies; they do not deploy Gmail on their own virtual machines. G Suite is the former name of this product family.
How pricing works
Plans are generally priced per user, with different commitments, pooled storage and administrative features. Temporary promotions should be separated from the ongoing renewal price. Workspace storage for users is different from object storage for an application.
Choosing a setup
Workspace belongs in a cloud directory because buying a finished service can replace a self-operated email and collaboration stack. Microsoft 365 is the direct comparison here. Google Cloud and Firebase instead provide infrastructure and application-development products.