This is true. My last company used fastmail, but one guy insisted on using Gmail. Sometimes fastmail didn’t arrive at Gmail. We (tech team) said, this is a problem with gmail. C-suite said this is a problem with fastmail.
And so the word comes down, we have to move to Gmail. It’s believable decision making, but that’s how it works.
Yeah, that's my experience too. Google doesn't like new domains, but at least accepts mail and delivers to spam (or to the inbox once the domain is old enough). Microsoft just refuses all mail if you host on a VPS whenever someone else on the block (NOT the same IP) misbehaves (or is accused of misbehaving, not sure).
I work for a 100-year-old company with 30k employees. Last year we moved from self-hosted Exchange to GSuite, because it's just easier to spend money on that than to spend money on an increasingly complex and hard-to-staff-properly internal service.
The issue is not self hosted versus GSuite. It rarely makes sense for any company to self host their own email. I think the parent poster was saying few use Gmail versus hosted outlook
My 40 year old company with about 12k users switched from self-hosted Exchange to Azure-hosted Office 365. I'm assuming part of the reason for this is to ease complexity, and it's working quite well for us.
Business email is very dependent on the fact that it’s an open protocol.