Google Makes It Easier To Transition Between Cloud Computing Providers
The cost associated with transitioning between cloud computing providers has frequently been a subject of criticism. The services have been disparaged as “roach motels,” allowing businesses to enter but making it challenging for them to exit.
Google to do away with fees for migrating cloud services
Alphabet Inc.’s Google is proactively addressing this issue. With immediate effect, the search engine giant is abolishing fees imposed on clients seeking to migrate from its cloud services to a competing platform. This strategic policy change could potentially influence competitors such as Amazon.com Inc. and Microsoft Corp. to consider similar measures.
The decision comes in response to increasing scrutiny of cloud services by regulatory bodies and legislators globally. For instance, the UK antitrust authorities initiated an investigation focusing on potential penalties, while fees have become a central topic during the US Federal Trade Commission’s request for public input on various issues related to cloud services.
Amit Zavery, Vice President at Google, responsible for overseeing the cloud business, stated that transition costs constitute a mere 2% of the overall expenses associated with transitioning to a different service provider. According to him, these fees do not discourage numerous clients from relocating their data. Zavery emphasized that factors such as training expenses and fees paid to the new cloud provider have a more significant impact. Nevertheless, Google is committed to addressing these concerns.
Zavery said that they have received feedback from regulatory authorities and customers indicating that the matter is a concern, and they are committed to addressing it.
Google’s motivation for this action, according to Zavery, is twofold. Firstly, the company aims to redirect regulatory attention towards what it perceives as a more significant concern: the restrictions imposed by Microsoft. These restrictions allegedly create obstacles for customers opting for Google Cloud in certain situations.
Microsoft restrictions make it hard to migrate cloud services
Over the years, Google, Amazon Web Services, and some of their clients have voiced grievances, asserting that Microsoft’s practices result in increased costs, heightened difficulty, or outright inability to operate flagship Microsoft programs such as Office and Windows on competing cloud platforms.
Microsoft has acknowledged in the past that certain of its offerings pose increased difficulty or expense when deployed on competing cloud platforms. The company has taken steps to mitigate these concerns, easing some restrictions in 2022. However, it’s important to note that these adjustments did not extend to prominent competitors such as Google, Amazon, and Alibaba Group Holding Ltd.
Currently the European Union is investigating the matter of Microsoft bundling its offerings with its cloud services. In response to this, Google has engaged in discussions with regulatory bodies, expressing its apprehensions, as stated by Zavery. Concurrently, Amazon has played a significant role in supporting industry groups that advocate for policymakers to exert pressure on Microsoft.
Zavery concluded that they want to ensure their perspective is effectively communicated alongside valuable insights they collect from customers. He noted that currently there is a potential threat to the company being excluded from prospective business opportunities and any delay in action might result in missed opportunities.
