Google Raises Concerns Over Microsoft’s Cloud Computing Practices

Alphabet’s Google Cloud has intensified its criticism of Microsoft’s cloud computing strategies, accusing its rival of attempting to establish a monopoly that could stifle the development of technologies like generative artificial intelligence (AI), Reuters news report said.
Cloud market share of AWS, Microsoft, Google 2023This comes amid increased scrutiny of Microsoft and Amazon’s market dominance in cloud computing by authorities in Britain, the European Union, and the United States, with Google trailing behind as a distant third.

The above chart from Synergy Research Group indicates that Cloud market share of Google Cloud, Microsoft Azure and Amazon Web Services in 2023.

Google Cloud Vice President Amit Zavery expressed concerns about Microsoft’s approach, particularly its collaboration with OpenAI, the creator of ChatGPT. Amit Zavery warned against Microsoft’s alleged efforts to create a closed ecosystem within its cloud platform, Azure, which could limit customer choice and innovation.

Amit Zavery highlighted the potential long-term ramifications of Microsoft’s strategy, urging antitrust regulators to intervene and prevent the transformation of on-premise software monopolies into cloud monopolies.

He emphasized the importance of maintaining an open cloud ecosystem to foster competition and technological advancement, especially in next-generation technologies like AI.

In response, Microsoft defended its practices, emphasizing healthy competition among cloud hyperscalers. A Microsoft spokesperson pointed to data indicating modest gains by both Microsoft and Google in 2023, although Amazon Web Services (AWS) maintains a significant lead as the global market leader.

Microsoft President Brad Smith indirectly addressed Google’s criticism during his speech at the Mobile World Congress in Barcelona, alluding to Microsoft’s comprehensive integration across various AI layers, including chips and app stores.

Amit Zavery also criticized Microsoft’s approach to addressing concerns raised by individual cloud vendors, accusing the company of selectively engaging with vendors to resolve complaints without addressing broader issues. Microsoft refuted these claims, stating that it actively collaborates with independent cloud providers to address licensing concerns and promote fair competition.

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