Google files complaint with the EU over Microsoft cloud licensing practices

What happened

On 25 September 2024 Google filed a complaint with the European Commission against certain Microsoft software licensing practices related to Azure, alleging they made it harder to move workloads to rival cloud providers.

The complaint fits into a broader debate about competition in the European cloud market, where regulators and alternative providers have at various times questioned licensing terms that favour a software vendor's own cloud platform.

What it means for a mid-sized business

Many businesses choose their cloud platform based on the software vendor they already use, without examining the associated licensing terms in detail. This type of dispute is a reminder that such terms can make switching providers later more expensive or harder.

Before committing to a cloud platform, it's worth analysing the exit cost too: data portability, formats, licensing and dependence on proprietary services can become a hard-to-reverse technology lock-in.

What to review

Points to check before committing to a cloud platform:

• Software licensing terms if run on a cloud other than the vendor's own.
• The cost and complexity of exporting data if you decide to switch provider.
• Dependence on proprietary services with no easy equivalent elsewhere.
• Contract clauses that penalise leaving or combining providers.

Frequently Asked Questions

What practices did Google complain about?

Microsoft software licensing practices related to Azure that, according to the complaint, made it harder to migrate workloads to other cloud providers.

Does this affect businesses using Microsoft 365 or Azure?

It can be relevant for those evaluating combining Azure with other clouds, since licensing terms affect the cost of that combination.

What is technology lock-in or vendor lock-in?

The difficulty of switching providers due to dependence on formats, licences or proprietary services hard to replicate on another platform.