Fears about Amazon and Microsoft cloud computing dominance trigger UK probe
LONDON — Concerns from regulators about the dominance of Amazon and Microsoft in Britain’s cloud computing market have triggered an investigation into the competitiveness of the key industry. The U.K. communications regulator Ofcom said Thursday that its yearlong study of the cloud communications services market found features that could limit competition. “Some U.K. 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,” Ofcom’s director responsible for the market study, Fergal Farragher, said in a press release. “So, we’re referring the market to the CMA for further scrutiny, to make sure business customers continue to benefit from cloud services.” Ofcom said it was concerned about the position held by Amazon and Microsoft, which together account for 70% to 80% of the cloud market. Amazon Web Services, the online retail giant’s cloud computing business, said it disagrees with Ofcom’s findings, which it said “are based on a fundamental misconception of how the IT sector functions, and the services and discounts on offer.” “The cloud has made switching between providers easier than ever.
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