[GLOBAL ECONOMIC TIMES] Microsoft (MS) publicly accused rival Google of working behind the scenes to disrupt its cloud business. Analysis suggests that this is a case of fierce competition between big techs in the cloud sector, which has grown in importance due to the rise of generative artificial intelligence (AI).
Microsoft's Deputy General Counsel Rima Alailly claimed on the company blog on the 28th (local time), "A lobbying group created by Google to discredit Microsoft with competition authorities and policymakers and mislead the public is being launched this week." did it.
The organization that Microsoft took issue with is the ‘Open Cloud Alliance.’ Alailly described the group as a “fake grassroots group” trying to disrupt Microsoft’s cloud business in the European Union (EU) and the UK while hiding Google’s involvement. “Google has gone to great lengths to obscure its involvement, funding and control, including enlisting a small number of European cloud providers to act as the face of the organization,” he wrote. He continued, “Google is likely to participate as a backseat member rather than a leader.”
Alailly said she received the inside story from the company that was offered to join the group. It was also mentioned that Google hired strategic advisory firm DGA to create the organization. He believed that Google's goal of organizing a lobbying group was to undermine Microsoft's credibility and divert attention from the intense antitrust investigations it is facing around the world.
In response, Google countered, “We and many others believe that Microsoft is locking in customers with anti-competitive practices and creating negative follow-on effects on cybersecurity and innovation.” “We’re not against any particular company,” said Nikki Stewart, senior advisor at the Open Cloud Alliance. “It is a pro-market coalition focused on advocating principles to strengthen the European cloud services market.”
The Financial Times reported, “Microsoft’s unusually straightforward statement reflects the fierce competition among big tech companies in the cloud computing field.”
Google remains in third place in the global cloud market, following Amazon Web Services (AWS) and Microsoft Azure. Last month, Google reported to EU authorities that Microsoft was preventing European customers from migrating from Microsoft Azure to other cloud services through unfair software licensing agreements.
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