According to Technology News UK, the two accounts for 70-80% of the sector in the UK, with Google accounting for 5-10%. In April, Ofcom expressed concern that a lack of competition would make it difficult for businesses to transfer providers. It has reported the matter to the UK’s Competition and Markets Authority (CMA) for investigation.
Amazon and Microsoft assured the BBC that they would cooperate with the CMA during its probe. On the other hand, Amazon claimed that Ofcom’s concerns were “based on a fundamental misconception” of the industry. In its broadest sense, cloud computing refers to the online storage of data that can be accessed from anywhere at any time. It has become a crucial piece of infrastructure for both organisations and individuals, and millions of people use it to store vast quantities of data, remotely access software, stream music and videos, and play games. It is sometimes referred to as using “other people’s computers,” referring to large networks of powerful machines housed in massive data centres around the world, many of which belong to Amazon or Microsoft.
Businesses around the UK use the services, and Ofcom estimates that the cloud services industry in the UK will be valued at up to £7.5 billion by 2022.
“Many businesses now entirely depend on cloud services, making effective competition in this market essential,” CMA CEO Sarah Cardell said.
“Strong competition ensures a level playing field so that market power does not end up in the hands of a few players – unlocking the full potential of these rapidly evolving digital markets so that people, businesses, and the UK economy benefit to the greatest extent possible. The CMA’s independent inquiry committee will now investigate to assess if competition in this market is working properly, and if not, what steps should be taken to resolve any flaws that are discovered.”
