The revised Microsoft Cloud licensing terms inhibit competition, the company’s rivals say.
Amazon and Google sharply criticized Microsoft’s cloud computing changes on Tuesday, according to a report in Reuters. The two rival cloud providers say Microsoft’s new terms limit competition and discourage customers from switching to rival cloud service providers.
On Monday, the US software giant announced amended licensing deals and other changes that will take effect on October 1. According to Microsoft, the changes will make it easier for cloud service providers to compete. Amazon, Google, Alibaba and Microsoft’s own cloud services will be excluded from the deals.
Microsoft’s move came after smaller European Union competitors took their grievances about its cloud service practices to EU antitrust regulators, which subsequently quizzed market players on the issue and its impact.
Microsoft’s move draws ‘scathing’ critiques
Amazon, the leading cloud service provider trailed by Microsoft and Google, was scathing in its critiques, Reuters reported. “Microsoft is now doubling-down on the same harmful practices by implementing even more restrictions in an unfair attempt to limit the competition it faces – rather than listening to its customers and restoring fair software licensing in the cloud for everyone,” a spokesperson for its cloud service unit AWS said in an email.
Marcus Jodotte, Google Cloud’s vice president for government affairs and policy, was equally critical. “The promise of the cloud is flexible, elastic computing without contractual lock-ins”, he said in a tweet. “Customers should be able to move freely across platforms and choose the technology that works best for them, rather than what works best for Microsoft”, Jadotte said.
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