Amazon joins Google to target Microsoft’s business practices in cloud computing


By MYBRANDBOOK


Amazon joins Google to target Microsoft’s business practices in cloud computing

Amazon has become the latest company to target Microsoft’s business practices that allegedly restricts customer choice in the cloud computing market. The e-commerce giant, which operates Amazon Web Services (AWS) cloud business globally, has told the UK’s Competition and Markets Authority (CMA) in a letter that changes to Microsoft’s terms of services had made it difficult for customers to switch to alternative cloud providers.  

 

“To use many of Microsoft’s software products with these other cloud services providers, a customer must purchase a separate licence even if they already own the software. This often makes it financially unviable for a customer to choose a provider other than Microsoft,” Amazon said. 

 

In October, the CMA initiated an investigation into the cloud computing industry in the country. The regulator underscored the dominant positions of Amazon and Microsoft in the market, noting that in 2022, AWS and Microsoft's Azure collectively held a market share of 70-80% in the country's cloud infrastructure market, while Google's cloud division accounted for approximately 5-10%. 

 

Recently, Reuters reported that Google has lodged a comparable complaint with the watchdog, expressing concerns about Microsoft's business practices. 

 

“With Microsoft’s licensing restrictions in particular, UK customers are left with no economically reasonable alternative but to use Azure as their cloud services provider, even if they prefer the prices, quality, security, innovations, and features of rivals,” Google said in the letter, highlighting that it harms customers is a barrier to competition in Britain’s cloud computing market. 

 

“There are many sources of competition in the cloud market in the UK. Google, Oracle, IBM and many other cloud players are also investing billions of pounds in cloud infrastructure globally to satisfy demand and are competing strongly for each customer workload where they operate,” it told CMA in its own submission. 

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