owards the end of 2022, CISPE, Cloud Infrastructure Services Providers in Europe, argued that Microsoft's new contractual terms could damage Europe's cloud ecosystem.
Now, Google Cloud is condemning its competitor after Microsoft helped settle antitrust complaints over cloud licensing practices by inking a settlement worth millions of dollars. Under the terms of the agreement, Microsoft is obliged to compensate CISPE members for the loss of licensing costs over the past two years.
This year, Wednesday, July 10 stated that they did take care of the issue and would withdraw their complaint. In addition, Microsoft declared they would develop a new product where CISPE members could run Microsoft software on their Azure Cloud infrastructure.
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Brad Smith, president of Microsoft, says that after more than a year of working with CISPE members, he is relieved that he has managed to solve the problem.
“We've not only resolved their concerns of the past but also worked together to define a path forward that brings even more competition to the cloud computing market in Europe and beyond,” says President Brad Smith in one of his statements.
Head of Platform for Google Cloud, Amit Zavery, expresses concern about Microsoft's licensing strategies and is pleased that several regulators have initiated investigations. Google Cloud says it will continue to fight Microsoft's licensing strategies to ensure a competitive environment where choice, innovation, and economic growth are a priority in Europe.
In addition, Google Cloud argues that the agreement reached between Microsoft and CISPE members violates the "red lines" imposed at the beginning of the negotiations because the agreement does not apply to all members.
In an email sent to CRN US, Google explains what these "red lines" imply. Any agreement should be principled, transparent and clear, future-proofed. It also emphasizes that the agreement should bring certain benefits to all clients in Europe, to have the right to run the licensed software without financial or technical penalties.
To fight down Microsoft's practices, Google Cloud is evaluating its options to ensure a fair marketplace. It shows its commitment to promoting a diverse digital ecosystem. The conflict between the two companies, Google and Microsoft, reflects the concerns of both companies to dominate the market and to compete through fair and equal practices.
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