Written by 18:01 Tech News Views: [tptn_views]

Microsoft Joins Cloud Giants in Scrapping Data ‘Egress Fees’: 5 Things You Need to Know

Sometimes, it’s the most silent steps that result in the loudest echoes. Microsoft’s unassuming announcement of axing egress fees for business customers on its Azure cloud platform is a case in mind. Amidst the riveting game of chess in the field of cloud technology, this move isn’t just Microsoft following the trend, its byproduct makes one ponder over the unfolding story of technological diplomacy.

1. Microsoft Joins the ‘No Egress Fee’ Club

Egress fees – incurred when data is transferred out of a cloud infrastructure – have been a staple in the industry. Microsoft’s recent decision sees them waving goodbye to these fees, becoming part of an exclusive club including Google and AWS.

2. It’s a Way to Keep Up With Competitors

While Microsoft’s choice is presented as a benevolent move to support customers, one can’t help but notice its timing. With AWS and Google taking the lead in waiving egress fees, Microsoft finds itself under pressure to offer a comparable value proposition.

3. The Change Wasn’t Loud, But It Was Significant

Despite the significance, Microsoft’s announcement was made rather quietly. Subtle as the announcement was, this strategic play has the potential of reshaping the industry’s standards, as egress fees have been a financial cornerstone for tech companies’ revenue generation.

4. Paving the Way Towards More Customer-Friendly Models

This move by Microsoft suggests a perceptible sway in the industry, as the focus sharpens on a more customer-centric model. The tech industry giants appear to be realizing the advantage of fostering long-term loyalty over short-term financial gains.

5. The Unfolding Story of ‘Technological Diplomacy’

The harmonized decision of Microsoft, Google, and AWS to ax egress fees can also be seen as a form of ‘technological diplomacy’. Companies are subtly aligning their practices to create standardized models for their customers, likely to facilitate hassle-free, flexible migrations.

This recent move by Microsoft not only highlights the competitive landscape of the cloud infrastructure industry but also sets a new precedent in making tech companies more service-oriented. Old school practices like egress fees, which once seemed indispensable, might start becoming obsolete, paving way for more customer-friendly business models.

Credit: BBC. TechCrunch, Reuters