VENDORiQ: Google Cloud Removes Data Transfer Fees

Discover how Google Cloud's decision to eliminate data transfer fees is driving vendor neutrality and cost-effectiveness in the Cloud market.

The Latest

January 2024: Google Cloud ditches data transfer charges for quitting customers to allow them to migrate to other Cloud service providers and/or on-premises storage. Google aims to ease vendor switching and believes in winning customers with its technology and services instead of locking them in with restrictive software licensing upon transfer. Other service providers leverage their monopoly to lock in customers with unfair licensing and stifling competition in the Cloud, according to Google.

Why It’s Important

This move by Google brings more contestability and freedom for cross-cloud provider migrations. IBRS believes that due to rapidly evolving technology advancements, organisations may find themselves unable to derive sufficient value from their current cloud provider and impede the migration process due to licensing constraints. To enhance the value-to-cost proposition and facilitate more flexibility for organisations, Google has opted to implement a no-fee policy for cross-cloud migrations. Companies like Microsoft and AWS, reportedly charge their customers a fee based on the volume of data they want to transfer when switching vendors, although AWS clarified in an email to CNBC that they have not been charging over 90 per cent of their customers when moving out of their services since 2021.

True Cloud democracy demands tackling the licensing restrictions that limit enterprises. Google’s decision could likely prompt other providers to reconsider their exit fees for Cloud migration, which will benefit enterprises by driving down costs and eventually, vendor neutrality, where choice is based solely on service quality and cost, not financial penalties for switching.

Who’s Impacted

  • CEO
  • Cloud infrastructure teams
  • Cloud Providers

What’s Next?

  • Negotiate with your current provider when considering Google Cloud’s free exit policy. Use it as leverage to negotiate better terms or lower costs.
  • If you’re already a Google Cloud client, compare costs and potential savings of migrating specific workloads or data.

Related IBRS Advisory

1. VENDORiQ: Google Cloud Launches Mainframe Modernisation Tool Dual Run

2. VENDORiQ: Google Ramps Up Cloud Regions In Asia Pacific

3. VENDORiQ: Google Next: Distributed Cloud Is More Than Hybrid And Multi-Cloud

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