Google Accused of Secretly Undermining Microsoft's Cloud Business.
Microsoft has made serious accusations against Google saying the company is trying to hurt Microsoft’s cloud business, Azure. Microsoft’s CVP, deputy general counsel, Rima Alaily wrote a scathing blog post revealing Google’s plan. Her blog which is also posted on the official Microsoft website, begins like this:
“Since moving into my current role at Microsoft almost seven years ago, I’ve worked hard to be genuine, responsive, and transparent. I’ve taken pains to tell the truth, even when that might make things more complicated for Microsoft. I think, and hope people I’ve engaged with – including reporters, and regulators – would say the same. It’s not comfortable or natural for me to pen something critical of someone else, but in this case, I think it’s important because it concerns me when someone attacks us and, I believe, does so dishonestly.”
Microsoft claims Google is creating a new lobbying group set to be unveiled this week which is designed to discredit Azure. This group is being established through a European lobbying firm. Microsoft found out about this plan from a European cloud provider who refused to participate and subsequently alerted Microsoft.
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Rima Alaily stated that Google’s involvement, funding, and control over the group have been intentionally obscured. “Google has gone to great lengths to hide its role in this astroturf campaign,” Alaily said. “They’re trying to create the illusion of grassroots support, but in reality, they’re pulling the strings,” she added.
She also said that Google’s tactics extend beyond creating astroturf groups citing instances of paid commentators and misleading information spread through various channels.
“Google is willing to do whatever it takes to discredit us, even if it means spreading falsehoods,” Alaily accused.
Microsoft claims Google’s motivations stem from facing increased regulatory scrutiny worldwide with at least 24 antitrust investigations underway. “Google is desperate to shift attention away from its monopolistic practices,” Alaily said. “Instead of competing fairly, they’re trying to sabotage their competitors,” she added.
Microsoft also highlighted Google‘s significant investments in cloud infrastructure including a 29% growth rate in its cloud business and $13 billion invested in infrastructure expansion. “Google’s claims of being a non-hyper-scale cloud provider strain credibility,” Alaily stated.
The company expressed concerns that Google’s tactics could harm other cloud providers and customers. “We hope regulators see through Google’s smokescreen,” Alaily said concluding the post.
This is not the first time Google and Microsoft have clashed. Google recently filed a complaint with EU regulators, accusing Microsoft of unfair practices. Microsoft settled a similar complaint with European cloud providers in July. Google claims Microsoft’s licensing policies are anti-competitive.
Regarding this complaint, Alaily countered, “Google’s argument that it shouldn’t have to pay for Microsoft’s intellectual property is baseless.”
Google says Microsoft’s policies lock customers into Azure reducing choice and increasing prices. Google’s cloud chief, Amit Zavery has stated customers pay up to 400% more to run Microsoft software on non-Azure clouds. European businesses pay around €1 billion annually to run Microsoft software on non-Azure clouds. In this dispute, Microsoft accuses Google of trying to undermine its settlement with European cloud providers.
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