From the department of “the lady doth protest too much, methinks” comes news that Microsoft wasn’t the only tech giant willing to offer cash to a European cloud trade body. It seems Google was also keen to get a piece of the action.
Members of the Cloud Infrastructure Service Providers of Europe (CISPE) trade group voted last week to accept a settlement deal from Microsoft regarding the software giant’s software licensing practices in which its wares were offered at lower prices in its own Azure cloud than it offers when deployed in rivals’ clouds.
While some of the agreement’s details remain confidential, several cloud providers – including Google – were a little miffed at the outcome.
“Microsoft’s playbook of paying off complainants rather than addressing the substance of their complaint hurts businesses and shouldn’t fool anyone,” trumpeted Amit Zavery, head of platform at Google Cloud.
“Paying off complainants?” The Register understands that Google was not averse to the same tactic. Except in this case, the paying off would have helped ensure CISPE’s inquiries into Microsoft could keep rolling on.
A cloud provider who spoke to El Reg on condition of anonymity told us Google offered to double the financial payment offered by Microsoft – alongside a contribution from AWS – and threw in roughly half a billion Euros in software benefits for CISPE members over five years. The catch? There’d be no need to drop that pesky complaint against Microsoft.
On the other hand, Microsoft wanted the complaint settled in return for its largesse. However, its cash would also mean CISPE would be financially independent for the next few years, with the hyperscalers potentially exerting much less influence over the organization – if any at all.
It should be noted that AWS is a member of CISPE, and its contribution to Google’s offer should be seen in that context.
An AWS spokesperson told us: “AWS is a founding member of CISPE and has regularly made voluntary contributions to CISPE. Enterprises across every major industry have long supported trade associations in similar ways.
“We simply reconfirmed our commitment to CISPE over the next few years to continue to support areas of shared interest – including fighting for every business to have the right to run the software they license on the cloud of their choice without financial or technical penalties.”
If our tipster is correct – and we have no reason to doubt them – the machinations going on behind the scenes in the hyperscaler world have been laid bare. The Register understands that both offers were put to CISPE members, but the majority opted for Microsoft’s deal – fearing that going down the Google path could result in the trade body ending up being little more than a pawn in a war between the tech titans.
Should Microsoft be able to fix the problem in the next nine months, the entire cloud ecosystem would benefit, as all improvements and software would theoretically be available to all European cloud providers.
An individual familiar with Google’s position on the matter didn’t take issue with CISPE’s acceptance of the deal, but simply noted it was an example of Microsoft’s enormous market power. The source said, “I think people should look at this and say, ‘Oh my gosh, how did Microsoft force everyone into this position?'”
Google Cloud has long supported the principles of fair software licensing
“Google Cloud has long supported the principles of fair software licensing. We were having discussions about joining as a member to help CISPE continue to fight against anticompetitive licensing and promote choice, innovation, and the growth of the digital economy in Europe,” a Google spokesperson told The Register.
Google and Zavery have long been critical of Microsoft’s approach to software licensing. In 2023, Zavery described the Windows vendor’s charging approach for software not running in its cloud as a “tax.”
Of the CISPE agreement, Zavery said: “Many regulatory bodies have opened inquiries into Microsoft’s licensing practices, and we are hopeful there will be remedies to protect the cloud market from Microsoft’s anti-competitive behavior. We are exploring our options to continue to fight against Microsoft’s anti-competitive licensing in order to promote choice, innovation, and the growth of the digital economy in Europe.”
However, Google’s protestations over the deal do appear to have stuck in the craw of some of the participants. One individual familiar with the situation described the accusation that Microsoft had bought off CISPE’s members as “a bit rich” – particularly considering the size of Google’s own offer. ®