Google Stops Charging Cloud Switching Fees
Google has announced that it will stop charging customers for switching to cloud services from other providers. This move by the search giant could pressure Amazon and Microsoft to change their similar policies.
Google's policy change comes as regulators and lawmakers around the world are increasing scrutiny of cloud services. Cloud customers have often complained about "penalties" when they want to switch providers.
Amit Zavery, Google's vice president who oversees the company's cloud business, said switching fees only account for about 2% of the total cost of moving to a new provider, and they are not a barrier to customer data migration. The bigger costs are retraining and fees paid to new cloud companies. "However, we heard from regulators and customers that this was a pain point, and we wanted to remove that friction. Of course, we would like to encourage other providers to do the same," Zavery added.
At the same time, Zavery did not forget to take a jab at his rivals. Google wants regulators to focus on what it sees as a bigger issue, such as Microsoft's creating barriers that make it difficult for some customers to access Google Cloud services in some cases.
Microsoft acknowledges that some of its products are more difficult or expensive to run on rivals' cloud services, but the company is making changes. While it relaxed some restrictions in 2022, the change did not apply to top rivals Amazon, Google, and Alibaba Group Holding Ltd.
(According to Bloomberg)