Jason Doy
Alphabet (GOOGL) (NASDAQ:GOOG) Google Cloud said Microsoft’s (MSFT) cloud computing practices are aimed at a monopoly that would harm the development of new technologies such as generative artificial intelligence, Reuters reported.
“We are concerned that Microsoft is changing its 10-year policy. “We used to have a pretty strong monopoly on on-premises software, but now we’re trying to push that into the cloud,” Google Cloud vice president Amit Zaveri said in an interview, the paper reported. report.
Industry leader Amazon had a 31% global market share in the fourth quarter of 2023, compared with 24% and 11% for Microsoft and Google, respectively, according to research firm Synergy. Amazon’s market share decreased year over year, while Microsoft increased its share by almost 2 percentage points and Google’s share also increased.
Microsoft and Amazon (AMZN) both face increased scrutiny in the US, UK and EU over their market influence in cloud computing.
Microsoft’s multibillion-dollar investment in OpenAI already faces potential scrutiny in the US and EU.
“So they’re creating this whole walled garden, which is completely controlled and owned by Microsoft,” Zavery added.
Mr. Zaveri also called on antitrust regulators to take action.
“I think regulators need to provide some guidance, and maybe some regulation that stops the way Microsoft is building its Azure cloud business and prevents the on-premises monopoly from becoming a cloud monopoly. No,” Zavery said.
Zavery pointed out that next-generation technologies like AI could also have problems if the Microsoft cloud remains open, as Microsoft uses various methods to force customers to migrate to Azure. Did.
However, Microsoft rejected this claim.
“Competition among cloud hyperscalers remains healthy, as the latest independent data shows,” a Microsoft spokesperson said, according to the report. “In 2023, Microsoft and Google made small gains on his AWS, but AWS remains the global market leader by a significant margin.”
Zavery also expressed concerns related to Microsoft’s contracts with individual cloud vendors, noting that these ignore broader issues.
Last month, European industry association Cloud Infrastructure Service Providers of Europe (CISPE) began discussions with Microsoft to resolve issues related to unfair software licensing for cloud infrastructure providers and their customers on the continent. Did.
