Google wants regulators to take Microsoft down a notch before it stifles AI
- Reference: 1709101872
- News link: https://www.theregister.co.uk/2024/02/28/google_microsoft_cloud_eu/
- Source link:
In an interview with [1]Reuters , Google Cloud VP Amit Zavery alleged that Microsoft is using many of the same tricks that helped it gain a dominant position in the on-prem software market to establish a similar monopoly in cloud applications.
The ironic bit of all this is of course Google itself maintains an effective monopoly on search. But in the public cloud, the tech titan remains an underdog – trailing AWS, Microsoft Azure, and Alibaba Cloud with 7.5 percent of global market share, according to [2]Gartner .
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"They are creating this whole walled garden, which is completely controlled and owned by Microsoft, and customers who want to do any of this stuff, you have to go to Microsoft only," Google's Zavery complained.
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If this sounds at all familiar, Zavery's comments are just the latest in a steady drum beat of complaints and antitrust [6]rhetoric lodged against Microsoft in what can best be described as an ongoing effort to weaponize regulators in the US, Europe, and UK against Redmond.
The central issue behind Google's beef with the Windows giant comes down to licensing practices that either [7]prevent or make it [8]more expensive to deploy Microsoft's software platforms on third-party clouds – thereby creating an incentive to deploy on Azure.
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"The complex web of licensing restrictions includes picking and choosing who their customers can work with and how; charging 5x the cost if customers decide to use certain competitors' clouds," Zavery complained in a [10]screed last month. "These and other restrictions have no technical basis and may impose a 300 percent cost increase to customers."
Microsoft is forcing customers to go to Azure in many ways
It's 2024 and the entire industry wants add generative AI models and capabilities into products and services. Zavery's antitrust crusade against Microsoft therefore adds a heartfelt plea: Won't somebody please think of the artificial intelligence?
"If Microsoft cloud doesn't remain open, we will have issues and long-term problems, even in next-generation technologies like AI, because Microsoft is forcing customers to go to Azure in many ways," Zavery argued.
Reading between the lines, it seems Zavery's argument is that unless regulators do something, Microsoft's policies may make the market for generative AI products less competitive. And Google would know what tactics to corner a market look like, given its dominance of search.
Microsoft has been aggressive in its quest to integrate close partner OpenAI's models into its product stack – including Office 365, GitHub Copilot, and of course its Bing Chatbot. But it's not like Google has been sitting still. The search giant has closely mirrored Microsoft's developments in these arenas – with services like its Bard and later Gemini chatbots and Workspace products.
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The Register reached out to Microsoft for comment regarding Google Cloud's allegations and we'll let you know if we hear anything back.
[12]It's crazy but it's true: Apple rejected Bing for wrong answers about Annie Lennox
[13]Date set for epic Amazon-FTC antitrust showdown
[14]Europe loosens the straps tying Apple and Microsoft to tough antitrust rules
[15]FCC Commissioner calls for crackdown on Apple's iMessage gatekeeping
Google and, to some extent, AWS have been quite successful getting competition watchdogs in the US, UK, and EU to consider Microsoft's market power. The search giant has launched numerous complaints against Microsoft, alleging unfair business practices.
As we previously reported, the UK's competition watchdog launched an investigation last year into the health of cloud competition in the country. Meanwhile, the US Federal Trade Commission and European Union have both launched antitrust investigations into Microsoft and other major cloud service providers at Google's urging.
While Google, and in [16]some cases AWS , have been quick to call out Microsoft as the bad guy, many of these investigations are aimed at the broader cloud market. Therefore Zavery must understand that he's opening Google up to additional scrutiny. As such, the Chocolate Factory isn't just trying to get regulators to act against competitors down a notch – it's also taken actions like [17]waiving data egress that are seen as an example of market power at work.
It seems Google's strategy isn't so much "don't be evil," as "be less evil than rivals." ®
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[1] https://www.reuters.com/technology/google-steps-up-microsoft-criticism-warns-rivals-monopoly-cloud-2024-02-26/
[2] https://www.gartner.com/en/newsroom/press-releases/2023-07-18-gartner-says-worldwide-iaas-public-cloud-services-revenue-grew-30-percent-in-2022-exceeding-100-billion-for-the-first-time
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zd8SWbKKzWZPVXzUFf-j8wAAAEA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zd8SWbKKzWZPVXzUFf-j8wAAAEA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zd8SWbKKzWZPVXzUFf-j8wAAAEA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2023/06/01/google_microsoft_cloud_complaints/
[7] https://www.theregister.com/2023/08/25/microsoft_google_alibaba_windows_apps/
[8] https://www.theregister.com/2023/12/01/google_submits_complaints_about_microsoft/
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zd8SWbKKzWZPVXzUFf-j8wAAAEA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://cloud.google.com/blog/products/networking/eliminating-data-transfer-fees-when-migrating-off-google-cloud
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zd8SWbKKzWZPVXzUFf-j8wAAAEA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2024/02/26/google_antitrust_defense_apple_bing/
[13] https://www.theregister.com/2024/02/14/amazon_ftc_antitrust/
[14] https://www.theregister.com/2024/02/14/apple_microsoft_dma_exemptions/
[15] https://www.theregister.com/2024/02/13/fcc_apple_beeper_mini/
[16] https://www.theregister.com/2023/12/07/aws_says_only_microsoft_has/
[17] https://www.theregister.com/2024/01/11/google_cloud_egress_fees/
[18] https://whitepapers.theregister.com/
Re: Linux is a better OS anyway
And it has been for ages, but that has not made people flock to it.
Unfortunately.
"be less evil than rivals"
Or maybe "don't you dare compete with us in the evilness stakes"
the Windows giant comes down to licensing practices that either prevent or make it more expensive to deploy Microsoft's software platforms on third-party clouds – thereby creating an incentive to deploy on Azure.
Or an incentive to avoid those Microsoft software platforms.
Build cloud infrastructure so it is portable.
The pot calling the kettle black
The arguments are weak indeed. Google is losing big time in this race and they are mad. I suspect MS wants to have an alternative model selection in their products to show they allow customers to choose, which is a good thing. Google’s problem is that they do not care about their enterprise customers so those shun them, MS on the other hand promises gold and wine and more.
Yes MS is leading their customers to the Azure quicksand but the same applies to all public clouds. Azure is not great IMO, there are better alternatives like Huggingface to choose and run the models.
Re: The pot calling the kettle black
Offering features in your cloud that makes it hard to migrate to another cloud is something that all cloud platforms do. But here Microsoft has the particularity that it is using the fact they have a quasi-monopoly in one domain (Windows in enterprise software) to reinforce their position in another domain (cloud), by charging more for Windows licenses if it doesn't run on their cloud. It's the local electricity company saying "we are also an ISP, and if you get another ISP we'll charge you more for electricity".
Oh My.... Who is more evil?
and worse at sucking your information and bank accounts dry?
IMHO, the top 3 all tie for evilness.
MS
or
or
Amazon
and in 4th place
Oracle for its arcane licensing that even the sales teams don't understand.
Sometimes their antics make IBM seem a saner place. (Note that I said 'seem')
The only solution I can see is to break Microsoft up. Four companies - one gets Azure and no software products. One gets Office, nothing else, and they're not allowed to do any cloud services. One gets Windows, nothing else, no cloud. Last company gets everything else, no cloud services, no Windows, no Office.
None of the four are allowed to share staff. They're not allowed to buy software directly from each other but most go through the channel. The other 3 are strictly forbidden from using the first's cloud services for any purpose.
Draconian? Yes. Will it make anyone feel any better about things? Doubtful. Will it solve anything? Probably not. Will any politician dare to do it? Of course not, Micros~1 will donate far too much to make sure it never happens.
Windows Tax anyone?
The 2.5 major cloud providers need to play on a level playing field. It’s the consumers getting screwed to keep the tech companies share price high. That said, Microsoft takes it to a whole new level of screwing customers, and while it’s a complete pain in the arse to get off windows, long term why wouldn’t you have that strategy. Windows is basically a 40% tax on every VM you run, and as far as I can see Linux is a better OS anyway.