Sarah Fielding MS, is an acclaimed journalist focusing on mental health, social issues, and tech. At Engadget, she reports on tech news, whether it be a Twitter bot exposing gender pay gaps or a beloved classic game's revival.
that the cloud services market "is not working as well as it could be." That relatively vague statement follows a, especially its two largest providers, Amazon Web Services and Microsoft . Both companies hold between a 30 and 40 percent market share, followed by Google at five to 10 percent.
Despite the vague thesis statement, the CMA's investigation has so far raised a few critical points and recommendations. It found that there are alternative cloud suppliers face significant barriers to enter and expand in the market. Also, that "technical and commercial barriers" limit customers' ability to switch providers, such as data transfer charges.
The CMA reports that UK businesses and organizations have increased their spending on cloud services by 30 percent each year — hitting £9 billion in 2023. Given this £9 billion spend, the CMA stated that paying just five percent more than prices in a "well-functioning market," would cumulatively cost another £430 million annually — more if the growth continues.
The inquiry group points to a new solution: Strategic Market Status designation for AWS and Microsoft's cloud services. The label comes courtesy of the UK's newand would allow the CMA to enforce greater regulation and pro-competition directives on the two services.
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