Microsoft is reportedly preparing to lobby the US government to ensure that large-scale cloud computing contracts are shared between different vendors.
Sources reported by the Wall Street Journal (opens in new tab) claim the tech giant is gathering other big players like Google Cloud and Oracle to persuade Washington to adopt a so-called multicloud approach.
Amazon Web Services, currently the frontrunner in the cloud computing world, with 39% of the market share according to Gartner, has not been approached to join the group, the sources say.
Why are they lobbying?
Public sector cloud procurement has been a subject of great controversy in the cloud hosting world in recent years.
The Pentagon awarded Microsoft a $10 billion contract in 2020, before choosing to drop the deal before work began, after Amazon received an injunction claiming the deal was the result of favoritism by President Trump.
In 2021, the Pentagon decided to award contracts to multiple vendors, using a multi-cloud approach.
Microsoft confirmed in a statement in response to the news that it had “given talking points to other cloud companies”, encouraging a “multicloud approach as a commercial best practice”, saying it is working “with other companies and trade associations to improve the federal government to adopt the same strategy”.
Amazon was understandably not the biggest fan of news about Microsoft’s plans to lobby Wall Street Journal that public sector customers “should have the freedom and flexibility to determine how to obtain secure, reliable and cost-effective cloud services and software – from the vendor or suppliers of their choice – without mandates or unfair software licensing restrictions”.
However, the criticism of dishonesty and market power goes in all directions.
Amazon Web Services (AWS) exec Matt Garman took to LinkedIn to criticize Microsoft over recent changes to its cloud licensing practices.
In the post, Garman, a senior vice president of sales and marketing at AWS, said: “Customers and policymakers around the world are increasingly seeing Microsoft’s recent licensing rhetoric as a disturbing admission of the same anticompetitive tactics that many companies have pursued over the years. them, but was ignored until they were brought before the European Commission”.
But it’s not just the US government that’s turning towards a multicloud approach.
Flexera’s recent State of the Cloud report shows that nearly all enterprises have embraced multicloud, with 93% of businesses now using multiple cloud service providers.
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