Google Claims Microsoft Is A Cloud Monopoly

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Google Claims Microsoft Is A Cloud Monopoly

Google is doubling down on its campaign to challenge Microsoft’s cloud business, claiming the company has a monopoly in the cloud.

Microsoft is the second-largest cloud provider, behind AWS, but that hasn’t stopped critics from claiming the company has a monopoly. The accusations stem largely from Microsoft leveraging its established desktop and productivity software to give customers better pricing when paired with its Azure cloud platform. The company has faced scrutiny in the EU as a result of this practice.

According to Reuters, Google Cloud VP Amit Zavery is once again trying to get regulators to crack down on Microsoft’s cloud business, with the company’s adoption of OpenAI fueling the latest concerns.

“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,” Zavery said in an interview.

“So they are creating this whole walled garden, which is completely controlled and owned by Microsoft, and customers who want to do any of this stuff, you have to go to Microsoft only,” he added.

“If Microsoft cloud doesn’t remain open, we will have issues and long-term problems, even in next generation technologies like AI as well, because Microsoft is forcing customers to go to Azure in many ways,” Zavery said.

Zavery called on regulators to provide a clear framework for how companies can bundle services and leverage existing businesses.

“I think regulators need to provide some kind of guidance as well as maybe regulations which prevent the way Microsoft is building the Azure cloud business, not allow your on-premise monopoly to bring it into the cloud monopoly,” Zavery said.

Microsoft, for its part, pointed to AWS’ leading position in the industry to counter Google’s claim.

“As the latest independent data shows, competition between cloud hyperscalers remains healthy,” said a Microsoft spokesperson. “In 2023, Microsoft and Google made small gains on AWS, which continues to remain the global market leader by a significant margin.”

Google Claims Microsoft Is A Cloud Monopoly
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