The Latest In The Microsoft-Google Clash is Cloud Services

Microsoft is claiming that Google is responsible for “shadow campaigns” that disparage Microsoft’s cloud division. Microsoft deputy general counsel Rima Alaily exposes in a harsh blog post that Google is set to establish a new “astroturf” squad this week.

Alaily claims, “It is intended to mislead the public and damage Microsoft’s reputation with policymakers and competition authorities.” In order to conceal its involvement, financing, and control, Google has taken considerable measures. One such measure is the hiring of a small number of European cloud providers to act as the new organization’s public face. We are aware that Google will probably not be the group’s leader when it first begins, but rather a supporting member.

This new lobbying group is purportedly the result of Google hiring a communications and lobbying firm in Europe. Microsoft seems to have been aware of the initiative after being warned off by an unidentified European cloud provider that refused to participate. The group will be led and mostly sponsored by Google with the intention of targeting Microsoft’s cloud computing business in the EU and the UK, according to Alaily, who quotes one of the firms who were approached but finally declined.

Only a few weeks after Google’s September antitrust complaint to EU authorities, this new lobbying entity was established. After Microsoft negotiated a settlement with an industry organization supported by European cloud infrastructure providers who were expressing similar concerns about Microsoft’s licensing policies, the search giant accused Microsoft of unfair licensing arrangements for its Azure cloud services.

Google allegedly attempted to thwart Microsoft’s July settlement with the organization, Cloud Infrastructure Services Providers in Europe (CISPE). “In exchange for rejecting the settlement and continuing the litigation, Google offered CISPE’s members a staggering $500 million in cash and credits,” claims Alaily. After the software behemoth let European cloud providers to sell Microsoft’s programs and services on local cloud infrastructure, CISPE ultimately reached an agreement with the company to drop its 2022 EU complaint.

Google has openly voiced its displeasure with Microsoft’s Windows Server license costs. Google spokesperson Laura Wheeler told The Verge via email, “We’ve been very public about our concerns with Microsoft’s cloud licensing.” Microsoft’s anti-competitive actions, in our opinion and those of many others, lock in consumers and have detrimental knock-on effects that affect cybersecurity, innovation, and choice. Our numerous blog entries on these topics have further information.

Last month, Amit Zavery, the vice president of Google Cloud, informed reporters that Microsoft charges its clients 400 percent more to keep using Windows Server on other cloud providers, but that Azure does not charge this premium.

Alaily contends that Google’s basic claim is that it shouldn’t be required to compensate Microsoft for developing and providing cloud services that use our intellectual property, specifically Windows Server, if clients have already bought the same program for a completely different purpose, such as on their own server. “We don’t agree. A streaming provider, such as Netflix or Disney, pays for the right to offer a movie as part of their service. If a subscriber happens to have a DVD of the same film, they do not receive a discount or credit. The cloud and software are the same.

After ending a six-year court fight ceasefire in 2021, there have been indications that Microsoft and Google may resume their acrimonious competition, which resulted in Scroogled and disputes over Google services on Windows Phone. With cloud rivalry at the heart of this most recent conflict, it appears that the war of words is very much back in full force.