Source URL: https://www.theregister.com/2024/11/28/google_offered_millions_to_cispe/
Source: The Register
Title: Google offered millions to ally itself with trade body fighting Microsoft
Feedly Summary: El Reg has seen the presentation to CISPE members which sources say was intended to keep the lawsuit over licensing alive
Exclusive Google Cloud dangled hundreds of million of euros worth of financial incentives to ally itself with an association of European cloud providers that had lodged a complaint against Microsoft, according to confidential documents seen by The Register.…
AI Summary and Description: Yes
Summary: The text discusses Google’s attempts to align with European cloud providers against Microsoft’s cloud software licensing practices, which have been criticized as anti-competitive. Google’s financial incentives, including a significant fund for innovation and software credits, are detailed. The outcome shows CISPE’s preference for settling with Microsoft instead of continuing a dispute with Google’s support, highlighting the competitive dynamics in the cloud infrastructure market, particularly within Europe.
Detailed Description:
– The article reveals that Google Cloud proposed substantial financial incentives to the Cloud Infrastructure Service Providers in Europe (CISPE) to gain influence and support against Microsoft.
– Key points discussed in the text include:
– Google offered €4 million through a Members Innovation Fund to support CISPE members in innovation projects and licensing fees.
– An additional €10 million was proposed to aid CISPE’s operations and membership resources.
– The most notable incentive was a total of €100 million in software credits for Google Distributed Cloud, aimed at Kubernetes-based cloud deployments.
– Despite these offers, CISPE ultimately decided to settle with Microsoft on an agreement worth between €10 and €30 million rather than pursue Google’s proposal.
– Microsoft’s software licensing policies have been reported to impose higher costs when using their software on non-Azure platforms, leading to claims of an unfair “software tax.”
– The competitive tension is characterized further by Google’s suspicion that Microsoft could convert a wider base of on-premise customers into Azure users due to perceived restrictions and costs associated with licensing.
– The piece highlights the ongoing struggle for cloud market dominance among major players (AWS, Microsoft, Google), particularly in Europe where local entities are concerns about monopolistic practices and licensing models that affect competition and innovation.
– The article underscores the complexity of corporate relationships and legal strategies in cloud computing, illustrating how financial incentives are used as leverage in competitive landscapes.
This text has practical implications for cloud computing security and compliance professionals as it delves into the intricacies of licensing, legal disputes, and financial strategies that can significantly impact operational costs, vendor choices, and regulatory practices in the cloud infrastructure domain.