Amazon, Google Oppose Microsoft's Cloud Computing Updates

  • Amazon.com Inc AMZN and Alphabet Inc GOOG GOOGL unit Google slammed Microsoft Corp's MSFT cloud computing changes, Reuters reports.
  • The companies argued that Microsoft's updates limit competition and discourage customers from switching to rival cloud service providers.
  • Microsoft amended licensing deals effective October 1, likely to make it easier for cloud service providers to compete. 
  • Microsoft excluded Amazon, Google, Alibaba Group Holding Limited BABA, and Microsoft's cloud services from the deals.
  • Microsoft's move came after smaller European Union competitors reported their complaints about cloud service practices to EU antitrust regulators.
  • Microsoft's pitch to Brussels directly addressed competition worries with a clear geopolitical purpose prompted by the complaints. 
  • The 2019 changes made Office and Windows customers' cloud migration more expensive with rival cloud companies than Microsoft's Azure service, helping it win market share from Amazon even at the cost of smaller cloud companies. 
  • However, Microsoft's pitch seemed like an attempt to turn Europe's cloud companies into resellers for Microsoft's software.
  • Earlier Microsoft rallied other big-name cloud-computing providers to urge the U.S. to spread its spending on such services targeting Amazon's dominance in such contracts.
  • Price Action: MSFT shares traded higher by 0.71% at $264.83 in the premarket on the last check Wednesday.
  • Photo by Rainer Stropek via Flickr
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