Channel reacts to Ofcom's referral of UK cloud market to CMA

Responding to Ofcom's study into UK cloud services and subsequent referral to the Competition and Markets Authority eve Networks MD Steve Barclay (pictured) stated: “It’s been infuriating to observe such incredible market growth in a space without control.”

“The fact that over 80% of the cloud market is dominated by two players shows a need for change.”

In October last year Ofcom launched a study under the Enterprise Act 2002 into cloud services in the UK and concluded that certain anti-competitive practices in favour of hyperscalers AWS and Microsoft, including high data egress fees, are stifling competition and choice.

Cloud Industry Forum CEO David Terrar also believes that action should have been taken earlier. “I’m surprised it’s happening now rather than five years ago, but the objective of a fair marketplace that encourages innovation, rather than stifles it, has to be supported,” he said. “We need open competition for a healthy market.”

Vapour CEO Tim Mercer pointed out that the lack of controls has made it harder for Ofcom and the CMA to create an impact. “A colossal degree of change is now required to shake up the market,” he said.

“But we have to leverage this opportunity to empower the buyer with knowledge, especially around the hidden costs of cloud, including egress charges and the inability to move simply.”


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