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© Reuters. FILE PHOTO: Small toy figures are seen in entrance of Google emblem on this illustration image, April 8, 2019. REUTERS/Dado Ruvic/Illustration/File Picture
By Foo Yun Chee
BRUSSELS (Reuters) – Alphabet (NASDAQ:)’s Google Cloud on Monday ramped up its criticism of Microsoft (NASDAQ:)’s cloud computing practices, saying its rival is searching for a monopoly that will hurt the event of rising applied sciences resembling generative synthetic intelligence.
Microsoft and Amazon (NASDAQ:) have lately attracted scrutiny in Britain, the European Union and america over their market energy in cloud computing. Google trails a distant third behind the 2 leaders.
Microsoft’s collaboration with ChatGPT creator OpenAI has additionally ratcheted up the issues.
“We fear about Microsoft eager to flex their decade-long practices the place they’d a whole lot of monopoly on the on-premise software program earlier than and now they’re attempting to push that into cloud now,” Google Cloud Vice President Amit Zavery mentioned in an interview.
“So they’re creating this complete walled backyard, which is totally managed and owned by Microsoft, and clients who need to do any of these items, it’s a must to go to Microsoft solely,” he mentioned.
“If Microsoft cloud does not stay open, we may have points and long-term issues, even in subsequent era applied sciences like AI as nicely, as a result of Microsoft is forcing clients to go to Azure in some ways,” Zavery mentioned, referring to Microsoft’s cloud computing platform.
He urged antitrust regulators to behave.
“I believe regulators want to offer some form of steering in addition to possibly laws which stop the way in which Microsoft is constructing the Azure cloud enterprise, not permit your on-premise monopoly to deliver it into the cloud monopoly,” Zavery mentioned.
Microsoft dismissed that argument.
“As the newest unbiased knowledge reveals, competitors between cloud hyperscalers stays wholesome,” mentioned a Microsoft spokesperson. “In 2023, Microsoft and Google made small positive factors on AWS, which continues to stay the worldwide market chief by a major margin.”
Microsoft President Brad Smith on Monday took a veiled swipe at Google.
“At the moment, just one firm is vertically built-in in a way that features each AI layer from chips to a thriving cellular app retailer,” he instructed the Cell World Congress in Barcelona.
Zavery additionally criticised Microsoft’s agreements with particular person cloud distributors, saying these ignore the broader points. Commerce group CISPE final month mentioned it was in talks with Microsoft to resolve its EU antitrust grievance about its cloud computing licensing practices.
“Microsoft has been very sensible, choosing particular person distributors who complain and do one-side offers however they do not remedy the broader downside. To allow them to select the winners and losers in lots of case as nicely, so that they form of choose who they need to compete with,” Zavery mentioned.
Microsoft refuted the criticism.
“Now we have listened to and work constructively and instantly with unbiased cloud suppliers to vary our licensing phrases, addressing their issues and offering extra alternative for them. Worldwide, greater than 100 cloud suppliers have already taken benefit of those adjustments,” a Microsoft spokesperson mentioned.
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