Microsoft has announced that business customers can now transfer data out of Azure cloud infrastructure without any associated “egress fees,” following similar moves by AWS and Google.
The announcement, although positioned as a customer-friendly gesture, was quietly revealed in a brief blog post, raising suspicions of hidden motives. Microsoft stated its support for customer choice, allowing data migration away from Azure, while also acknowledging compliance with the new European Data Act, set to begin next year, aimed at promoting competition by facilitating cloud provider switching.
Triopoly
Azure, as part of the “big three” public cloud triopoly, sits behind AWS and Google. Google announced the elimination of egress fees in January, followed by AWS earlier this month.
The issue revolves around the cost of moving data out of cloud providers, creating barriers to migration. Microsoft already allowed 100GB of free data transfer out of Azure monthly, benefiting companies looking to manage data elsewhere. However, the high costs associated with transferring all data off Azure prompted today’s announcement.
Caveats
Microsoft’s move faced criticism due to certain limitations, such as applying only to departing customers who cancel all Azure subscriptions for egress fee rebates. This restricts companies seeking a multi- or hybrid-cloud approach, limiting access to Azure services without incurring egress fees once the monthly 100GB allowance is exceeded.
This move, while aligning with the EU’s Data Act, lacks flexibility for modern businesses with multi-cloud needs, according to Mark Boost, CEO of Civo.
Additionally, the free transfer out only applies to storage data, not other Azure services like the Content Delivery Network (CDN), which still incur standard charges, as explained on this support page.
“Big Tech’s rush to abolish egress exit fees may not offer true flexibility without additional costs,” cautioned Boost.
