- Microsoft has followed AWS and Google in waiving data egress fees for customers leaving its Azure cloud platform.
- This decision aligns with impending European Data Act regulations and addresses concerns raised by the UK Competition and Markets Authority.
- Analysts view this move as a marketing tactic and emphasise that regulatory focus on egress fees may be misplaced.
Following similar announcements from Amazon Amazon Web Services (AWS) and Google earlier this year, Microsoft recently stated it would no longer charge customers for data egress fees when removing data from its Azure cloud. In a blog post, the company expressed support for customer choice, offering free egress for those leaving Azure to transfer data to other cloud providers or internal data centres.
Also read: AWS will stop charging for data transfers to other platforms
Also read: Google Cloud removes data transfer fees when clients switch to rivals
It coincides with impending regulations from the European Data Act
This move coincides with impending regulations from the European Data Act, aimed at addressing contract terms that stifle competition, set to take effect in September 2025. The Competition and Markets Authority in the UK has also investigated egress fees to address competition concerns.
Naveen Chhabra, Principal Analyst at Forrester, likened this declaration to AWS’s recent announcement, suggesting it reflects a shift among major cloud service providers to allow customers to migrate without paying egress fees, largely influenced by the European Data Act. Google announced it would waive egress fees starting January, limited to customers closing their accounts, a similar move to AWS, which doesn’t require account closure.
Microsoft requires account cancellation after data egress from Azure
Microsoft also requires account cancellation after data egress from Azure. Chhabra views this more as a marketing move, given that egress fees are significant only for a small subset of customers, particularly those seeking a backup cloud provider in case of issues with another. Corey Quinn, Chief Cloud Economist at The Duckbill Group, remarked that eliminating egress fees might improve perceptions for new customers but isn’t crucial, as users must close or cease using their Azure accounts to qualify for free egress. He noted regulatory focus on egress fees may be targeting the wrong area.
