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I've done a fair bit of work with O365 and Google Docs, assisting schools and small business. To be frank, anyone who says that one is substantially better than the other is simply biased and shouldn't be taken seriously. They both have some real advantages and drawbacks and what is best comes own to nothing but your own organisation and use cases.

O365 - good web functionality, ability to use full Office if needed (the web version has bizarre limitations), great compatibility with legacy Office formats. It's also a lot more open with regards to educational organisations - it's much easier to get a free O365 subscription over Google Docs if you are a legitimate educational organisation or charity but not an actual school. On the downside, it's generally more expensive, it's much more complex to manage than Google Docs (don't get me started on the insane license management process), less reliable than Google Docs in a browser and while there are a huge number of apps in the ecosystem, they just don't feel as coherent and integrated as Google's offerings. There's also an obvious preference towards supporting Windows on the endpoint that's hard to get away from. Understandable for MS, but the world has moved on from the early 2000s.

O365 summary: Great for those who absolutely need perfect Office compatibility/familiarity and probably more scalable to the high end if you are massive. Also recommended to those charities who need free tools and have fallen through the (large) cracks in Google's acceptance check process.

Google Docs - cheaper, simpler, more reliable. On the downside, things like Sheets are less powerful than Excel and you don't get local apps provided. The simplicity and way lower TCO speaks volumes though - managing a fleet of Chromebooks is miles cheaper and easier than a fleet of Windows devices with O365 - and that's not just my own observation but also my customers words from those who have experienced both.

Google summary: If you are a startup or school, I'd recommend Google Docs.

Ultimately though, both scare me (along with AWS) as they all result in the world's data becoming hostage to a handful of American megacorps that have all demonstrated hostility to end users and customers.