Google Warns Against Microsoft's Increasing Dominance in the Cloud Market

In recent observations, Google Cloud has expressed concerns about Microsoft’s potential to monopolize the cloud computing market. Google Cloud's vice president, Amit Zavery, warned that Microsoft's tactics in cloud computing could stifle innovation in emergent areas like generative artificial intelligence. Zavery highlighted the danger of Microsoft extending its long-standing dominance in on-premise software to the cloud sector.

Market Share Dynamics

Data from a research firm Synergy indicates that Amazon leads the cloud market with a 31% share in the fourth quarter of 2023, followed by Microsoft at 24%, and Google at 11%. While Amazon experienced a decrease, Microsoft and Google have seen increments in their market shares.

The Regulatory Spotlight

Both Microsoft and Amazon are undergoing scrutiny for their influential positions in the cloud market by authorities in the United States, the United Kingdom, and the European Union. Moreover, Microsoft’s substantial investment in OpenAI is drawing potential regulatory attention in the U.S. and EU.

Concerns About a 'Walled Garden'

Zavery criticized Microsoft for creating a 'walled garden' approach, completely owned and controlled by the company, and called for regulatory intervention to prevent the establishment of a cloud monopoly reminiscent of its on-premise software dominance. He emphasized the necessity for an open Microsoft cloud to avoid problems with future technologies like artificial intelligence, alleging that Microsoft is compelling customers to opt for Azure.

However, Microsoft rejects these accusations. A spokesperson stated that cloud competition remains vigorous and healthy, with Microsoft and Google making minor gains against AWS's significant lead.

Untangling Licensing Issues

Zavery has pointed out issues with Microsoft's agreements with individual cloud vendors, suggesting they overlook wider concerns. Recently, CISPE, a European trade group, initiated talks with Microsoft to address concerns regarding unfair software licensing practices affecting cloud infrastructure providers and customers in Europe.

Google, Microsoft, Cloud