Ofcom said it received evidence showing Microsoft makes it less attractive for customers to run its Office productivity apps on cloud infrastructure other than Microsoft Azure.
Igor Golovniov | Sopa Images | Lightrocket via Getty Images
Britain’s anti-competition regulators have been tasked with investigating Microsoft and Amazon‘s dominance of the cloud computing market.
Media watchdog Ofcom on Thursday referred its inquiry for further investigation to the Competition and Markets Authority, kickstarting the process.
Ofcom said that it had identified features which make it more difficult for U.K. businesses to switch cloud providers, or use multiple cloud services, and that it is “particularly concerned” about the position of market leaders Amazon and Microsoft.
“Some UK businesses have told us they’re concerned about it being too difficult to switch or mix and match cloud provider, and it’s not clear that competition is working well,” Fergal Farragher, Ofcom’s director responsible for the market study, said in a statement Thursday.
“So, we’re referring the market to the CMA for further scrutiny, to make sure business customers continue to benefit from cloud services.”
Ofcom is concerned that so-called “hyperscalers” like Amazon Web Services and Microsoft Azure are limiting competition in the cloud computing market. These are companies that allow businesses of all stripes to carry out critical computing tasks — like storage and management of data, delivery of content, analytics and intelligence — over the internet, rather than through servers stored on site, or “on premise.”
AWS and Microsoft Azure are the biggest players in the market. AWS’ cloud solution is primarily targeted at startups, while Microsoft prioritizes big enterprises. AWS and Microsoft Azure account for roughly 60% to 70% of cloud spend, according to an Ofcom estimate. Combined, Amazon, Microsoft and Google generate roughly 81% of revenues in the U.K.’s cloud infrastructure services market,…
Read the full article here
Leave a Reply