You can see this in the declining collective market share for smaller cloud providers shown in the graph above. While these companies have been growing, it has been at a rate lower than the market as a whole. Google in turn has been growing its share of cloud services revenues and now ranks at number three.Įspecially as the largest tech companies have invested more in their infrastructure and services, the biggest challenge has been for smaller cloud providers, like those headquartered in Europe that have expressed concerns about our licensing practices and their ability to compete. We compete every day with Amazon, which has consistently captured roughly 33 percent of those revenues. Microsoft has a healthy number two position when it comes to cloud services, with just over 20 percent market share of global cloud services revenues. This feedback captured an important aspect of recent cloud competition, highlighted in the graph below that was published last month in the Financial Times. We are making changes to remedy this, beginning today. Over the past few years, our focus on competing with the largest technology providers has resulted in us not being as attentive to the impact on our cloud provider partners. Some of the most compelling feedback for me personally came from a CEO who said that he felt that he “was a victim of friendly fire in Microsoft’s competition with Amazon.” It was hard to hear this – but he was right. In recent weeks, we also engaged other business leaders and dispatched a team that met in person with companies and associations in multiple countries. I joined other senior Microsoft business leaders so I could participate myself in remote meetings with the CEOs of two European providers. The changes we are making today on behalf of European Cloud Providers are grounded in feedback we heard in meetings with several of those providers across Europe. Today we’re taking a big step, but not necessarily the last step we will need to take, and we look forward to continuing feedback from European Cloud Providers, customers, and regulators. As I said in one video meeting a few weeks ago with the CEO of a European cloud provider, our immediate goal is to “turn a long list of issues into a shorter list of issues.” In other words, let’s move rapidly so we can learn quickly. This will make European Cloud Providers more competitive by enabling them to better serve customers.īefore turning to the details, I think it’s important at the outset to acknowledge that these steps are very broad but not necessarily exhaustive.
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