NEW YORK, Feb 26 (Delcom Infotech) – Alphabet’s Google Cloud, represented by (GOOGL.O), intensified its critique of Microsoft’s cloud computing practices on Monday, alleging that its competitor is aiming for a monopoly that could hinder the advancement of emerging technologies like generative artificial intelligence.
Microsoft (MSFT.O) and Amazon (AMZN.O) have come under recent scrutiny in Britain, the European Union, and the United States due to their dominance in cloud computing. Google lags far behind as a distant third player in the market.
Microsoft’s partnership with OpenAI, the creator of ChatGPT, has further heightened industry-wide 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,” Google Cloud Vice President Amit 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 said.
“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, referring to Microsoft’s cloud computing platform.
Zavery implored antitrust regulators to take action.
“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 firmly brushed disregarded that argument.
“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.”
On Monday, Microsoft President Brad Smith subtly criticized Google.
“Today, only one company is vertically integrated in a manner that includes every AI layer from chips to a thriving mobile app store,” he told the Mobile World Congress in Barcelona.
Zavery also voiced criticism against Microsoft’s deals with specific cloud providers, suggesting that they overlook larger concerns. Last month, the trade group CISPE announced discussions with Microsoft aimed at addressing its EU antitrust complaint regarding the company’s cloud computing licensing policies.
“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 case as well, so they kind of pick who they want to compete with,” Zavery said.
Microsoft countered the criticism.
“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. Worldwide, more than 100 cloud providers have already taken advantage of these changes,” a Microsoft spokesperson said.
