Google Cloud has voiced concerns regarding Microsoft’s cloud licensing practices, asserting that these practices unfairly penalize customers who wish to operate their services on competing platforms. In a recent blog post, Google reiterated a formal complaint submitted to the European Commission about a year ago, claiming that Microsoft has made little progress in addressing the issues raised.
The key point of contention is Microsoft’s pricing structure, which reportedly creates a massive cost differential. According to Google, transitioning workloads from Microsoft to other cloud providers, such as Google Cloud or AWS, could prove to be five times more expensive due to these licensing rules. This situation, labeled as vendor lock-in, discourages customers from exploring alternatives and stifles competition.
Google has highlighted the accessory costs imposed on customers using platforms other than Microsoft’s Azure, where existing on-premises licenses can be transferred. In contrast, customers migrating to Google Cloud must purchase new licenses, exacerbating their overall expenses.
Regulatory bodies like the UK’s Competition and Markets Authority have recognized that Microsoft’s policies inhibit cloud choice but have yet to enforce any changes. Additionally, the Federal Trade Commission in the U.S. has initiated its own antitrust investigation into Microsoft’s operations.
Google Cloud’s representatives have emphasized that restrictive licensing has posed significant harm to the global economy over the past year. They argue that addressing this issue could enable governments to unlock additional GDP growth and enhance efficiency across the board.
In response, Microsoft asserts that it has resolved similar complaints from other European cloud providers amicably. The tech giant maintains confidence that Google will not be able to influence the European Commission similarly, given their previous experiences.
For more information, you can refer to Google’s official blog on this topic here.
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