Microsoft’s and Amazon’s hegemony over the cloud computing sector is being looked into by Britain’s anti-competition officials.
The process was started on Thursday when media watchdog Ofcom submitted its inquiry for additional examination to the Competition and Markets Authority.
In a statement, Ofcom stated that it had found elements that make it more challenging for U.K. businesses to transfer cloud providers or utilise multiple cloud services, and that it is “especially concerned” about the positions of market leaders Amazon and Microsoft.
According to Fergal Farragher, director of Ofcom in charge of the market analysis, “several UK businesses have expressed worry about finding it too difficult to switch or mix and match cloud providers, and it’s not apparent that competition is working successfully.”
“To ensure that business clients continue to benefit from cloud services, we’re recommending the market to the CMA for additional examination.”
Ofcom worries that so-called “hyperscalers” like Microsoft Azure and Amazon Web Services are stifling competition in the cloud computing market. These enterprises make it possible for organisations of all kinds to perform crucial computing functions online rather than through servers that are physically located on-site, or “on premise,” such as data management, content distribution, analytics, and intelligence.
Source (CNBC)
