Shaking up the current situation doesn't seem to be an entirely bad thing. As it stands, the majority of the internet is depending/residing on datacenters provided by a handful of companies. I'm not sure that's a good thing.
Building satisfactory alternatives to Office, Workspaces etc. isn't a monumental task by any stretch. With the sudden demand that you predict, they'll spring up like weeds.
This might be ham-fisted and crude, but in the end I see a lot of positives.
If replacing Office / Workspaces is not a monumental task, why are there only two good options? Workspaces is only just becoming a viable replacement for enterprise because pivot tables are hard.
A big reason is that competing with them on equal footing is a monumental task. You are working against network effects, heavy duty marketing, integrations into other products and a whole army of developers.
But network effects and marketing are irrelevant for products that can't be used in your country because they violate local laws. If some Google product can't legally be used in the EU, then it has zero network effects there and Google wouldn't waste money marketing it there.
Also, the competing EU-based service might be strong competitors to the ones in the U.S., among people like me who are privacy conscious. I don't use Google services, but I'd be happy to consider using GDPR-compliant services based in Europe.
