Cloud computing: Google intensifies criticism against Microsoft

Alphabet’s Google Cloud has escalated its criticism of Microsoft’s cloud computing practices, asserting that the tech giant is actively pursuing a monopoly that could impede the progress of emerging technologies, including generative artificial intelligence (AI).

Both Microsoft and Amazon are facing increased scrutiny in various regions, such as Britain, the European Union, and the United States, over concerns regarding their dominance in the cloud computing market.

Google, currently trailing as the third player, has voiced apprehensions about Microsoft’s strategies. Microsoft’s collaboration with ChatGPT creator OpenAI has also ratcheted up the concerns.

The Vice President of Google Cloud, Amit Zavery,  expressed concerns in an interview, stating, “We worry about Microsoft wanting to flex their decade-long practices where they had a lot of monopoly on the on-premise software before and now they are trying to push that into cloud now.”

He highlighted Microsoft’s efforts to create a closed ecosystem, asserting that customers might be compelled to rely solely on Microsoft for various services.

Zavery emphasized the potential long-term impact on next-generation technologies like AI if Microsoft’s cloud remains closed. He called on antitrust regulators to intervene, urging them to provide guidance and possibly implement regulations to prevent what he sees as Microsoft’s attempt to transfer its on-premise monopoly into the cloud.

Zavery emphasized the potential long-term impact on next-generation technologies like AI if Microsoft’s cloud remains closed.

He called on antitrust regulators to intervene, urging them to provide guidance and possibly implement regulations to prevent what he sees as Microsoft’s attempt to transfer its on-premise monopoly into the cloud.

Responding to the allegations, a Microsoft spokesperson dismissed the concerns, stating, “As the latest independent data shows, competition between cloud hyperscalers remains healthy.”

The spokesperson emphasized that Microsoft and Google made slight gains on AWS in 2023 but acknowledged AWS’s continued dominance.

Also Read: UK: Google pushes for antitrust action against Microsoft

Microsoft President Brad Smith took a veiled swipe at Google during a speech at the Mobile World Congress in Barcelona.

“Today, only one company is vertically integrated in a manner that includes every AI layer from chips to a thriving mobile app store,” he remarked.

Zavery also criticized Microsoft’s agreements with individual cloud vendors, stating that these agreements ignore broader issues.

Trade group CISPE has been in talks with Microsoft to address its EU antitrust complaint about the company’s cloud computing licensing practices.

“Microsoft has been very smart, picking individual vendors who complain and do one-side deals but they don’t solve the broader problem. So they can choose the winners and losers in many cases as well, so they kind of pick who they want to compete with,” Zavery commented.

Microsoft refuted these criticisms, asserting that they actively collaborate with independent cloud providers.

“We have listened to and work constructively and directly with independent cloud providers to change our licensing terms, addressing their concerns and providing more opportunity for them,” the Microsoft spokesperson stated adding that over 100 cloud providers worldwide have already taken advantage of these modifications.