Microsoft is working with a local Chinese company to expand its cloud computing capabilities in China

For American tech giants, one of the most important tasks now is to avoid antitrust scrutiny from regulators, whether Apple, Amazon or Facebook, do not want to give regulators antitrust excuses in any way.

While being more cautious in business, most American technology companies try to avoid a greater concentration of leadership positions in corporate governance, but for Microsoft, none of this seems to matter.

Continue to increase the size of cloud services

According to data released by authoritative research organization Synergy Research a few days ago, in the first quarter of 2021, the global cloud infrastructure services market grew 37% year-on-year to US $39 billion, and reached US $140 billion in the past 12 months. The global cloud infrastructure services market continues to maintain a strong growth trend.

There are many competitors in the cloud services market, but Amazon and Microsoft, two major cloud manufacturers, account for more than half of the global cloud services market share, and the top five manufacturers control more than 80% of the market.

In addition to Europe and the United States, Microsoft is also making efforts in the Asian market. According to sources quoted by Bloomberg, Microsoft plans to build four new data centers in China in the coming months to enhance its cloud service capabilities. to expand its cloud services business across Asia.

Microsoft currently has six data centers in China, and the cloud computing market in China is expected to grow to $46 billion by 2023, according to Microsoft documents. As Microsoft expands in China, it will also face local competitors, whether it is Ali, Huawei or Tencent.

Bloomberg revealed that Microsoft is working with a local Chinese company to expand its cloud computing capabilities in China. Although the current global cloud computing market is stable, but on the whole, cloud computing is still a very good business, which can help the giants to dig gold faster.

Nadella monopolizes power

From a business point of view, Microsoft is hardly faced with antitrust worries, which may be why Microsoft is bolder in corporate governance.

On June 18th, according to foreign media reports, Microsoft officially announced on Wednesday that it would merge CEO and chairman's duties, with Satya Nadella (Satya Nadella) as both CEO and chairman of the board.

There is no doubt that Microsoft's approach runs counter to the governance philosophy of most American technology giants at present. In Microsoft's history, this is the first time in nearly 20 years since Bill Gates left office. After Nadella serves as both CEO and chairman, Thompson, the current chairman, will return as chief independent director.

No matter the shareholders, regulators or the whole society, they all think that the separation of the positions of CEO and chairman is more conducive to corporate governance and helps to improve the transparency of the company. Data show that about 59% of S & P 500 companies have separated CEO and chairman positions.

A Microsoft spokesman said that Microsoft has been discussing the possibility of merging the positions of CEO and chairman since 2020. At present, there are 10 independent directors and one chief independent director on Microsoft's board of directors, which can still provide effective supervision and strategic direction for the company.

Microsoft's move will raise concerns about Microsoft's corporate governance. The merger of CEO and the chairman actually strengthens management control over the board, which many say will affect the board's leadership in dealing with environmental, social and governance issues, and no explanation will satisfy the outside world.

Why can Microsoft avoid antitrust investigations?

As one of the most valuable technology companies in the world, despite Microsoft's growing influence in the cloud computing software market, investors do not seem to have any competitive concerns about it.

At a time when people from all walks of life in the United States are unhappy with the growing influence of Apple, Amazon, Google and Facebook, Microsoft has avoided it very well.

In fact, Microsoft experienced antitrust scrutiny as early as the 1990s and 2000s, and although it did not break up Microsoft in the end, Microsoft reached a settlement with regulators in the United States and Europe by paying huge fines. and later changed its previous business practices.

Over the past decade, rookies such as Apple, Amazon, Google and Facebook have emerged one after another, giving regulators more goals. Instead, it is Microsoft, already the most technology company in the technology world on the side of government public policy, that advocates protecting consumer privacy and establishing a code of ethics for artificial intelligence. Microsoft has not gained the largest market share in either the cloud services market or audio-visual games.

Although the change of management positions has caused a lot of controversy in society, but the outside concern is not enough to cause regulators to put pressure on it, but for Microsoft, it is a dangerous signal.