Microsoft is one of the largest contractors for the US government. The Redmond-based tech giant provides many services to the government in the States. Notably, the company provided the US government with $150 million worth of cybersecurity tools for free. By doing so, Microsoft created a monopoly in the US government’s security systems, claims a report.
A report claims Microsoft created a monopoly in the US government’s cybersecurity systems
A ProPublica report found Microsoft pledged $150 in cybersecurity to the US government during a 2021 White House summit. Internally known as the White House Offer, the summit was led by President Joe Biden. The company’s pledge would see the federal agencies getting free access to many of its tools.
Besides, the report claims that Microsoft made it difficult for the US government to switch contractors as it already created a monopoly by offering free services. Also, the White House summit in 2021 benefited Microsoft beyond the cybersecurity space, as well.
Microsoft’s consultants working with the agencies provided technical assistance to the agencies to implement its tools. The consultants pushed federal agencies to adopt Microsoft’s cloud-based security products.
Microsoft offered free services as part of a calculated business maneuver
Microsoft provided many paid tools the Microsoft 365 Government G5 security suite to the US government. It includes security, compliance, and collaboration features. Notably, the G5 security suite costs around 60 percent more than the G3 suite. Microsoft proposed to offer free services as a “calculated business maneuver”. The report says they designed the proposal to bring in new revenue.
This was also to box competitors out of lucrative government contracts. The company was seeking to tighten its grip on federal business. Microsoft has denied these allegations. Steve Faehl, the company’s CTO said, “sole goal during this period was to support urgent requests by the administration to enhance the security posture of federal agencies”.
That said, Some of the unnamed Microsoft sales leaders confirmed these allegations. They said that it was a golden opportunity that nobody could have foreseen opening up.
