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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/04\/05\/aws-and-microsoft-in-uk-crosshairs-as-ofcom-mulls-cloud-services-market-investigation\/<\/a><\/br> U.K. regulator Ofcom is preparing to refer the local cloud infrastructure market for an in-depth investigation, with the practices of Amazon and Microsoft in particular firmly in focus.<\/p>\n The news comes some six months after Ofcom first revealed<\/a> it was kickstarting a market study into the \u00a315 billion U.K. cloud market.<\/p>\n It\u2019s worth noting that Ofcom\u2019s consultation, which involves soliciting stakeholder feedback from across the cloud industry, is only at its halfway point. But Ofcom said that it has \u201cprovisionally identified\u201d practices that make it more difficult for businesses to switch between cloud providers, or even use multiple providers, which is why it is \u201cproposing<\/a>\u201d to refer the U.K. cloud services market to the Competition and Markets Authority (CMA) for a formal investigation.<\/p>\n \u201cWe\u2019ve done a deep dive into the digital backbone of our economy, and uncovered some concerning practices, including by some of the biggest tech firms in the world,\u201d Fergal Farragher, Ofcom\u2019s director responsible for the market study, said in a press release<\/a>. \u201cHigh barriers to switching are already harming competition in what is a fast-growing market. We think more in-depth scrutiny is needed, to make sure it\u2019s working well for people and businesses who rely on these services.\u201d<\/p>\n The crux of the problem, according to Ofcom, is that Amazon, Microsoft and Google collectively account for more than 80% of cloud revenues in the U.K., and they may enforce policies, fees and other restrictions that make it difficult for other smaller providers to gain traction. These include so-called \u201cegress fees,\u201d which are often opaque fees that cloud companies charge whenever a company transfers data out of the cloud and moves it elsewhere \u2014 this is often seen as an unscrupulous means to lock customers in, as the costs are typically higher than what it costs to transfer data into, or within, a single provider\u2019s cloud.<\/p>\n Elsewhere, Ofcom also points to issues around interoperability, whereby the big cloud firms create their products so that they don\u2019t play nicely with competing providers \u2014 this can put a considerable resource-drain on companies looking to adopt a hybrid cloud<\/a> approach. Related to this, Ofcom also says that the big cloud vendors often offer \u201ccommitted spend discounts,\u201d which while reducing the customers\u2019 costs, also encourages them to stick with a single vendor even if better alternatives may exist.<\/p>\n Ofcom notes in its initial findings:<\/p>\n These market features can make it difficult for some existing customers to bargain for a good deal with their provider. There are indications this is already causing harm, with evidence of cloud customers facing significant price increases when they come to renew their contracts.<\/p>\n<\/blockquote>\n From 2018 to 2021, the \u201cothers\u201d category in the U.K. cloud market fell from 30% to 19%, while in tandem the so-called big-three \u201chyperscalers\u201d gained significant market share, or remained around the same. Microsoft has actually seen the biggest growth, rising from 17% to 25% over the four-year period, while Google jumped from 12% to 16% market share. AWS, meanwhile, has fallen marginally from 41% to 40%, but remains by far the single biggest cloud provider.<\/p>\n
\nAWS and Microsoft in UK crosshairs as Ofcom mulls cloud market investigation<\/br>
\n2023-04-05 22:10:33<\/br><\/p>\nFriction<\/h2>\n
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