Microsoft Accuses Google of Discrediting Cloud Services with Lobby Group Campaigns

Microsoft accuses Google of running campaigns to discredit the company’s cloud platforms. Google is said to have paid a European communications agency to set up a lobby group.

Microsoft consultant Rima Alaily writes in an extensive blog post that the lobby group is “designed to discredit Microsoft among competition authorities and policy makers and mislead the public.” Google has gone to great lengths to conceal its involvement and funding, most notably by recruiting multiple European cloud providers to serve as the public face of the new organization. When the group is announced, Google will reportedly present itself as a supporting member instead of a leader.”

According to Microsoft, the information about the lobby group comes from an approached cloud provider who refused to join. “The company said the organization is largely directed and funded by Google to smear Microsoft’s cloud services in the European Union and the United Kingdom,” Alaily claims.

Google is also said to have tried to block Microsoft’s settlement with CISPE, a trade association for European cloud providers. Alaily claims that Google offered CISPE members a combination of cash and credits worth $500 million to reject the settlement and continue the lawsuit. CISPE settled with Microsoft to withdraw its 2022 complaint after the company allowed European cloud providers to offer Microsoft’s apps and services on local cloud infrastructure. However, the settlement did not include Amazon Web Services, Google Cloud and AliCloud.

In response to The Verge Google does not respond to Microsoft’s accusations. A spokesperson did mention that ‘Google has previously expressed concerns about Microsoft’s cloud licenses’. Google complained to the European Commission in September about Microsoft’s ‘impediment to competition in the cloud market’. The company says Microsoft is tying “unfair licensing practices” to Azure. Microsoft would charge customers a 400 percent surcharge to continue using Windows Server on competing cloud services, where the surcharge does not apply to Azure.

Microsoft vs. Google: The Cloud War Gets Dirty

In a world where our data is the new oil, it seems two tech titans are throwing mud rather than playing nice. Microsoft accuses Google of orchestrating a campaign straight out of a political thriller to discredit its cloud services, and if true, it’s more riveting than the latest Netflix series!

In an intriguing blog post, Microsoft consultant Rima Alaily pulls back the curtains on what could only be described as a dramatic game of corporate espionage. Imagine a shadowy group, hired and funded by Google, wading through the murky waters of public relations to tarnish Microsoft’s shiny cloud reputation. Oh, how the mighty have fallen from grace! Google, it seems, is determined to play the puppeteer, with European cloud providers dancing at the end of its strings—only to mislead the audience as to who’s really pulling the strings.

The Plot Thickens

According to Alaily, an unnamed cloud provider was approached to join this covert operation but wisely chose to skip the murky waters of collaboration. Instead, they spilled the beans, claiming the new lobby group is primarily directed and financed by Google, aimed at vilifying Microsoft amongst regulators and the public alike. It’s like a corporate version of “Survivor”—but instead of being voted off the island, you just get your cloud infrastructure trashed!

If that weren’t enough, Google’s tactics become even more peculiar. Wielding a rumored $500 million offer to members of CISPE, the European cloud provider trade association, Google allegedly sought to block Microsoft’s settlement with the group. It’s like offering someone a shiny new car while suggesting they throw a banana peel under their rival’s vehicle! But alas, CISPE was smitten by Microsoft’s offer to let them run their services on local infrastructure, resulting in a settlement that unfortunately excludes goodies like Amazon Web Services, Google Cloud, and AliCloud. One can only imagine Google’s reaction: “Wait, what? They can *do* that?”

Google Strikes Back

However, in response to these serious accusations, Google appears to be taking the 5th—well, sort of. While the company provided a lukewarm acknowledgment of Microsoft’s claims, they were quick to redirect the conversation. A spokesperson decided this was the perfect time to air their grievances about Microsoft’s so-called “unfair licensing practices.” Apparently, having to pay up to 400% more to use Windows Server on competing cloud services is just over their cloud-loving heads. Must be tough to be a tech giant when you’re complaining about competition in a competition, eh?

Ah, the irony! While Microsoft plays the hero, trying to save its reputation (and market share) from Google’s dark arts, Google seems intent on portraying itself as the David to Microsoft’s Goliath in the cloud market. Is it cloudanamic? I believe that’s a word now—if it isn’t, it should be! It perfectly encapsulates the high-stakes game these two companies are playing amidst a backdrop of public relations stunts and quid pro quo.

What’s Next?

As this saga unfolds, it raises pertinent questions: Who will come out on top, and how far will these tech juggernauts go in their quest for cloud supremacy? Will we witness an epic showdown complete with boardroom battles and dramatic twists worthy of prime time? Only time will tell, but one thing is for sure—this cloud war is just getting started, and it’s bound to get a lot messier. Buckle up, folks! The tech show is just heating up.

In the end, is it business as usual, or have Microsoft and Google turned this into a full-blown reality show? Let’s just say, if there’s one thing we can depend on, it’s for the stakes to climb higher and the devices we depend on to stay just as hilarious.

In a bold accusation, Microsoft has alleged that Google is orchestrating campaigns aimed at undermining its cloud platforms. It has come to light that Google purportedly engaged a European communications agency to establish a lobby group for this purpose.

Microsoft consultant Rima Alaily elaborates in a comprehensive blog post that this lobby group is “designed to discredit Microsoft among competition authorities and policy makers and mislead the public.” Furthermore, Google is said to be taking considerable measures to mask its involvement and financial backing. Notably, the tech giant has enlisted various European cloud providers to act as the public representatives of this newly formed organization. As the group prepares for its official announcement, sources indicate that Google will position itself as a supporting member rather than as the principal organizer.

According to Microsoft, insights regarding the lobbying effort were provided by a cloud provider that ultimately chose not to participate in the group. “The company said the organization is largely directed and funded by Google to smear Microsoft’s cloud services in the European Union and the United Kingdom,” Alaily asserts.

Moreover, Google has allegedly attempted to obstruct Microsoft’s settlement with CISPE, a trade association representing European cloud providers. Alaily claims Google extended financial incentives and credits totaling $500 million to CISPE members in an effort to persuade them to reject the settlement and prolong the ongoing lawsuit. Notably, CISPE ultimately agreed to settle with Microsoft, leading to the withdrawal of its 2022 complaint, following Microsoft’s commitment to enabling European cloud providers to offer its applications and services on their local infrastructures. However, it is important to note that this settlement did not extend to Amazon Web Services, Google Cloud, or AliCloud.

In the wake of these serious allegations, Google has chosen not to directly respond to Microsoft’s claims. A spokesperson did acknowledge that “Google has previously expressed concerns about Microsoft’s cloud licenses.” Additionally, in September, Google lodged a complaint with the European Commission regarding what it termed Microsoft’s “impediment to competition in the cloud market.” The company argues that Microsoft is employing “unfair licensing practices” associated with its Azure service, highlighting a scenario where Microsoft imposes a staggering 400 percent surcharge on customers wishing to use Windows Server on rival cloud platforms, a fee that is conveniently absent for transactions involving Azure.