Google steps up criticism of Microsoft, warns of rival’s cloud monopoly

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eAlphabet’s Google Cloud on Monday stepped up its criticism of Microsoft’s cloud computing practices, saying its rival is seeking a monopoly that would hurt the development of emerging technologies such as generative artificial intelligence.

Microsoft and Amazon have recently attracted the attention of Britain, the European Union and the United States due to their market power in cloud computing. Google is far behind the two leaders.

Microsoft’s collaboration with ChatGPT creator OpenAI has also increased concerns.

“We’re concerned that Microsoft wants to adapt its decade-old practices, where it previously had a significant monopoly on on-premises software, and now it’s trying to move it to the cloud,” said Google Cloud vice president Amit Zavery, in an interview. .

“So they’re creating this whole walled garden, which is completely controlled and owned by Microsoft, and customers who want to do this kind of thing have to go only to Microsoft,” he said.

“If the Microsoft cloud doesn’t stay open, we’re going to have long-term problems, even in next-generation technologies like AI, because Microsoft is forcing customers to move to Azure in more ways than one,” Zavery said, making reference to Microsoft. cloud computing platform.

He urged antitrust regulators to act.

“I think the regulators need to provide some sort of guidance as well as maybe regulations that prevent the way Microsoft grows the Azure cloud business, and not allow your on-premises monopoly to bring it into the cloud monopoly ” said Zavery.

Microsoft rejected this argument.

“As the latest independent data shows, competition among cloud hyperscalers remains healthy,” a Microsoft spokesperson said. “In 2023, Microsoft and Google made slight gains in AWS, which continues to remain the global market leader by a significant margin.”

Microsoft President Brad Smith launched a veiled jab at Google on Monday.

“Today, a single company is vertically integrated in a way that includes all layers of AI, from chips to a thriving mobile app store,” he said at Mobile World Congress in Barcelona.

Zavery also criticized Microsoft’s deals with individual cloud providers, saying these ignore broader issues. Trade group CISPE said last month it was in talks with Microsoft to resolve its EU antitrust complaint over its cloud computing licensing practices.

“Microsoft has been very smart, picking individual vendors who complain and make unilateral deals, but they don’t solve the larger problem. So they can pick winners and losers in many cases as well, so they pick in sort of who they want to compete with,” Zavery said.

Microsoft has refuted the criticism.

“We have listened and worked constructively and directly with independent cloud providers to change our licensing terms, addressing their concerns and providing them with more opportunities. Worldwide, more than 100 cloud providers have already benefited from these changes,” a Microsoft spokesperson said. .

Also read other top stories today:

Microsoft joins its rival OpenAI! Microsoft has announced an artificial intelligence partnership with Mistral AI that could reduce the software giant’s reliance on ChatGPT creator OpenAI. Read all about it here.

No application for a decade! Deutsche Telekom has unveiled a smartphone concept that relies on AI rather than apps to meet user needs. The CEO predicts that apps will be obsolete in 5 to 10 years. Some interesting details in this article. Check it out here.

Google plans to relaunch its AI image generation tool in a few weeks. It was discontinued due to horrific inaccuracies in historical depictions. Know everything here.

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