Microsoft: Our Licensing Terms Do Not Meaningfully Raise Cloud Rivals' Costs

In a response to the UK's Competition and Markets Authority's investigation into cloud services and licensing, Microsoft has defended its practices, asserting that its terms "do not meaningfully raise cloud rivals' costs." The Windows-maker emphasized Amazon's continued dominance in the UK hyperscale market and noted Google's quarter-on-quarter growth, while also highlighting the declining share of Windows Server relative to Linux in cloud operating systems and SQL Server's second-place position behind Oracle. [...] The CMA's inquiry primarily focuses on the pricing disparity between using Microsoft products on Azure versus rival cloud platforms, with most surveyed customers perceiving Azure as the more cost-effective option for Microsoft software deployment. The Register adds: Microsoft's bullish take on this is that AWS and Google should be grateful that they even get to run its software. In its response, the company said: "This dispute on pricing terms only arises because Microsoft grants all rivals IP licenses in the first place to its software that is of most popularity for use in the cloud. It does this not because there is any legal obligation to share IP with closest rivals in cloud, but for commercial reasons."

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