Europe’s cloud computing industry is witnessing a shake-up with the debut of the Open Cloud Coalition (OCC). OCC is a new lobbying group that aims to foster competition, transparency, and resilience in the sector.
This coalition is set to work closely with regulatory bodies across the European Union (EU) and the United Kingdom (UK). It’s being led by notable cloud companies like Google, and joined by local players including Centerprise International, Civo, and Pulsant.
The OCC’s focus will be on cloud market research, presenting findings to regulators, and consulting on fair competition practices. This launch has sparked debate over the coalition’s objectives, with Microsoft’s concerns adding fuel to the discussion.
Breaking down the Open Cloud Coalition’s Mission
The OCC is committed to more than conducting studies and consultations. By creating resources on vendor lock-in and transparency, the coalition hopes to create a landscape where businesses can choose cloud providers.
This should be a choice without restrictive pricing or contractual barriers. Nicky Stewart, the OCC’s public sector director and representative from Civo, emphasized the coalition’s aim to make cloud computing “more competitive and flexible,” with plans to advocate for open standards and easier provider transitions.
Stewart’s comments resonate with companies frustrated by the restrictive nature of current cloud agreements. For many, switching providers is challenging, both financially and logistically. The costs could potentially be running high due to licensing and compatibility issues.
Key Goals of the OCC:
- Enhance competition by addressing restrictive agreements
- Promote open standards for interoperability between providers
- Conduct market research on cloud practices and provide findings to regulators
- Engage in policy discussions to improve transparency
Microsoft’s Reaction: A “Shadow Campaign” Allegation
Microsoft’s reaction to the OCC’s launch has been swift and vocal. In a preemptive blog post, Rima Alaily, Microsoft’s deputy general counsel, accused Google of organizing a “shadow campaign” to influence cloud regulation under the guise of independent voices.
Alaily suggested Google is leveraging smaller European providers as a front to appear as a grassroots movement, casting doubt on the coalition’s authenticity.
OCC Versus CISPE: Competition in the Lobbying Arena
The OCC is not the only coalition in the European cloud industry aiming to influence regulation. The Cloud Infrastructure Services Providers in Europe (CISPE) has been active since 2017, with Amazon Web Services (AWS) as its marquee member.
The OCC’s formation follows Microsoft’s recent settlement with some CISPE members, who had raised concerns over Microsoft’s licensing changes that increased costs for non-Microsoft cloud services. In July, Microsoft agreed to a $22 million settlement and made concessions to reduce these barriers, though AWS did not participate in the agreement.
This backdrop underscores Google’s motivation to form the OCC, as it reportedly seeks a fair playing field in the European market by pushing back on Microsoft’s alleged monopolistic tactics.
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European Regulatory Interest in Cloud Competition Intensifies
Both the EU and the UK are increasing their focus on cloud services, specifically around vendor lock-in practices. A new European Commission will soon take office, and the UK is currently conducting an in-depth review of market practices with results expected by 2025.
With market leaders AWS and Microsoft under close scrutiny, the OCC’s formation could influence how regulatory bodies perceive and address competition in the cloud industry.
Aiming for Transparency: The Open Cloud Coalition’s Funding and Structure
The coalition’s funding sources remain a point of contention. Microsoft claims that Google is the primary backer, while the DGA Group, which supports the OCC’s recruitment efforts, has stated that funding will eventually be disclosed through the EU Transparency Register.
This lack of clarity has sparked additional scrutiny, especially given Microsoft’s allegations about Google’s behind-the-scenes involvement.
Key Questions:
- Will the OCC’s funding disclosure change public perception?
- How will the coalition’s influence shape future cloud policies?
What’s Next for Europe’s Cloud Sector?
As the OCC begins its journey, cloud providers and users alike are paying close attention to how this coalition’s advocacy might impact the future of cloud infrastructure in Europe.
By addressing vendor lock-in and promoting open standards, the OCC could contribute to a more competitive landscape. This will ultimately benefit businesses and consumers.
While the coalition’s journey has just begun, its actions may have long-term implications for Europe’s cloud sector. As regulatory investigations proceed, the cloud industry in Europe stands at a critical crossroads, one that could reshape its foundational policies for years to come.
