Microsoft’s Cloud Practices Result in Google-Microsoft Strife

     Microsoft’s anti-competitive cloud computing practices have enraged Alphabet's Google Cloud, who condemned the former’s imminent deals with several European cloud vendors, asserting that they would not solve broader concerns about its licensing terms.

Clash of The U.S. Tech Giants 

Amit Zavery, the Vice President of Google Cloud, has long ago pointed out the company’s issue with antitrust agencies while encouraging European Union antitrust regulators to take notice of it.

Microsoft President Brad Smith replied stating it ‘has a healthy number two position when it comes to cloud services, with just over 20 percent market share of global cloud services revenues'.

Owing to the monopolistic nature of this sector, it has attracted more stringent regulatory scrutiny, including in the U.S. and Britain.

Zavery’s Grievances

Amit Zavery talked about Microsoft’s strategy in an interview stating, “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". He also added, "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".

Zavery highlighted the unfair advantage of individual deals that are struck with several smaller European cloud vendors, whose fruits only Microsoft will be able to reap. He said “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."

While brushing aside any speculations that undermined this issue as a mere rivalry between Google and Microsoft, the Head of Platform clarified, "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".

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