UK cloud market competition apparently diminished; CMA points towards AWS and Microsoft for potential anticompetitive practices
UK Cloud Services Market: CMA Investigation Reveals Concerns and Calls for Change
The UK's Competition and Markets Authority (CMA) has concluded an investigation into anti-competitive practices in the UK cloud services market, revealing concerns about complex pricing models and high data egress fees.
The CMA's findings are particularly relevant to the UK's FinTech sector, which heavily relies on scalable and cost-efficient cloud infrastructure. The investigation identified Microsoft and Amazon as the companies exerting significant unilateral market power in the UK cloud services market.
According to the CMA's report, these practices have locked in many organizations and discouraged innovation. Kevin Dunn, VP & GM EMEA at Wasabi, a challenger cloud storage company, has stated that cloud computing's lack of predictability on costs has created a significant hurdle for UK organizations.
Wasabi Technologies offers an alternative approach with flat-rate pricing and zero egress fees. The company's internal research shows that 51% of UK companies exceeded their cloud budgets in the past year, largely due to hidden fees and a lack of pricing transparency. In response to the CMA's findings, Wasabi Technologies has welcomed the report and called for swift action.
The CMA is concerned about how these practices have affected UK businesses. The authority found that 51% of UK companies told Wasabi that they have exceeded their budget in the last year due to these factors. These practices, according to the CMA, have created a barrier to entry for new providers and stifled competition.
The CMA's intervention could signal a turning point in cloud infrastructure governance. The authority has recommended measures to address these concerns, including greater transparency in pricing models and a cap on data egress fees.
The CMA's findings come at a critical time for the UK's cloud services market. As businesses increasingly rely on cloud infrastructure, the need for a fair and competitive market is more important than ever. The CMA's recommendations could pave the way for a more transparent and competitive cloud services market in the UK.
