Alphabet’s Google Cloud has accused Microsoft of anti-competitive cloud computing practices and criticised imminent offers with European cloud distributors, saying these don’t resolve broader considerations about its licensing phrases.
In Google Cloud’s first public feedback on Microsoft and its European offers its Vice President Amit Zavery instructed Reuters the corporate has raised the problem with antitrust businesses and urged European Union antitrust regulators to take a better look.
In response, Microsoft referred to a blogpost in May final 12 months the place its president Brad Smith mentioned it ‘has a wholesome quantity two place on the subject of cloud providers, with simply over 20 p.c market share of world cloud providers revenues’.
“We are committed to the European Cloud Community and their success,” a Microsoft spokesperson instructed Reuters on Thursday.
There is intense rivalry between the 2 USÂ tech giants within the multi-billion-dollar cloud computing enterprise, the place Google trails market chief Amazon and Microsoft.
Microsoft has supplied to vary its cloud computing practices in a cope with smaller rivals which in flip will droop their antitrust complaints, an individual with direct information of the matter instructed Reuters this week.
The transfer will stave off an EU investigation.
“Microsoft definitely has a very anti-competitive posture in cloud. They are leveraging a lot of their dominance in the on-premise business as well as Office 365 and Windows to tie Azure and the rest of cloud services and make it hard for customers to have a choice,” Zavery mentioned in an interview late on Wednesday.
“When we talk to a lot of our customers, they find a lot of these bundling practices, as well as the way they create pricing and licensing restrictions, make it difficult for them to choose other providers,” he added.
Zavery mentioned particular person offers struck with a number of smaller European cloud distributors solely profit Microsoft.
“They’re selectively kind of buying out those ones who complain and not make those terms available to everyone. So that definitely makes it an unfair advantage to Microsoft and ties the people who complained back to Microsoft anyway,”
“Whatever they’re offering, there should be terms across for everybody, not just for one or two they’ve chosen and pick, and that shows you that they have so much market power they can kind of go and do those things individually.”
“My point to the regulators would be that they should look at this holistically, even though one or two vendors might settle doesn’t solve the broader problem. And that’s the problem we need to really resolve, not individual vendors’ problems.”
Zavery dismissed the suggestion that the problem is merely a spat between Google and Microsoft.
“The question is not about Google. I just want to make it very clear. It’s the cloud. The premise with cloud was to have an open, flexible way to deploy your software and have customers more choices so that they can run their software in any place they choose to in a much more easy way,” he mentioned.
© Thomson Reuters 2023
