The UK’s Competition and Markets Authority (CMA) has just announced a slight delay in releasing its much-anticipated provisional report on the cloud computing sector. Originally earmarked for publication in December 2024, the new date has been shifted to January 2025. While this might sound like bureaucratic calendar shuffling, there’s a lot more to this move than meets the eye. Let’s dive deep into what’s going on, explore the broader implications for tech giants and cloud users, and see how this impacts the global cloud landscape.
The crux of the concern? AWS and Azure’s duopoly-like grip on the market could stifle competition, innovation, and fair pricing. With a multitude of businesses and public sector entities increasingly reliant on cloud infrastructure, such issues are no longer geeky footnotes but mainstream socio-economic debates.
Ofcom passed the baton to the CMA to dig deeper, and that’s exactly what’s been happening since late 2023.
Here’s what we know about the timeline:
1. AWS (Amazon Web Services):
AWS is the grandfather of cloud computing and remains the market leader. Known for its extensive service catalog (think virtual servers, AI services, and even quantum computing), it underpins the core IT infrastructure of businesses ranging from startups to major corporations.
Concerns: AWS’s volume discounts and bundling practices might edge out smaller competitors unfairly.
2. Microsoft Azure:
A major rival to AWS, Azure has the advantage of being deeply integrated with Microsoft’s ubiquitous Office suite and Windows products. However, this close integration (e.g., favorable pricing for licensing Windows Server on Azure versus third-party clouds) has raised anti-competitive red flags.
Concerns: Licensing complexities make it costly to run Microsoft software outside of Azure.
3. Google Cloud Platform (GCP):
While it lags behind AWS and Azure, GCP focuses on specific niches, such as AI workloads, data analytics, and Kubernetes (where Google initially led development). GCP acts as the third wheel in the so-called cloud troika.
Concerns: Less about market dominance here—GCP’s efforts may be throttled if AWS/Azure practices prove too exclusionary.
Other providers like IBM, Oracle, and Alibaba Cloud play niche roles, but none command anywhere near the same leverage.
WindowsForum.com will keep you posted on every twist and turn. Buckle up—2025 might bring winds of change for cloud computing as we know it. Until then, keep an eye out for updates, and feel free to share your thoughts on how these developments might affect you or your organization.
Let’s brainstorm in the comments! Is this the end of the cloud duopoly? Or just another regulatory flash in the pan?
Source: Silicon UK CMA Delays Cloud Computing Report Until 2025
A Quick Background: Why Is the CMA Investigating Cloud Providers?
The CMA doesn’t just wake up one day and decide to investigate tech goliaths—it needs a push. Back in September 2022, Ofcom, the UK communications regulator, raised concerns about the dominance of certain companies in the cloud sector. A year later, by October 2023, Ofcom presented findings that hint at anti-competitive “features” in the market, primarily around Amazon Web Services (AWS) and Microsoft Azure, with Google Cloud Platform (GCP) playing a less significant but still noteworthy role.The crux of the concern? AWS and Azure’s duopoly-like grip on the market could stifle competition, innovation, and fair pricing. With a multitude of businesses and public sector entities increasingly reliant on cloud infrastructure, such issues are no longer geeky footnotes but mainstream socio-economic debates.
Ofcom passed the baton to the CMA to dig deeper, and that’s exactly what’s been happening since late 2023.
What Does the Delay in the Report Mean?
Delaying the provisional findings until January 2025 might seem trivial, just a one-month pushback, right? But in the high-stakes cloud computing sector—where changes happen at light speed—every month matters. Businesses, investors, smaller competitors, and even industry regulators now have to wait to understand how the CMA views the state of cloud competition—and whether tough “behavioral remedies” might be suggested.Here’s what we know about the timeline:
- Provisional Findings: Now expected January 2025.
- Final Report: Still set for July 2025, indicating the CMA wants its time buffer to evaluate feedback and nail down its stance.
Why AWS, Microsoft Azure, and Google Are in the Spotlight
The cloud computing market is, to put it mildly, concentrated. AWS and Azure, for example, collectively hold nearly 65-70% of the UK’s cloud computing market share, dwarfing other players like Google Cloud (GCP), Oracle Cloud, and IBM Cloud. Let’s break it down:1. AWS (Amazon Web Services):
AWS is the grandfather of cloud computing and remains the market leader. Known for its extensive service catalog (think virtual servers, AI services, and even quantum computing), it underpins the core IT infrastructure of businesses ranging from startups to major corporations.
Concerns: AWS’s volume discounts and bundling practices might edge out smaller competitors unfairly.
2. Microsoft Azure:
A major rival to AWS, Azure has the advantage of being deeply integrated with Microsoft’s ubiquitous Office suite and Windows products. However, this close integration (e.g., favorable pricing for licensing Windows Server on Azure versus third-party clouds) has raised anti-competitive red flags.
Concerns: Licensing complexities make it costly to run Microsoft software outside of Azure.
3. Google Cloud Platform (GCP):
While it lags behind AWS and Azure, GCP focuses on specific niches, such as AI workloads, data analytics, and Kubernetes (where Google initially led development). GCP acts as the third wheel in the so-called cloud troika.
Concerns: Less about market dominance here—GCP’s efforts may be throttled if AWS/Azure practices prove too exclusionary.
Other providers like IBM, Oracle, and Alibaba Cloud play niche roles, but none command anywhere near the same leverage.
US Connections: FTC Investigation + Global Ramifications
On the other side of the Atlantic, the US Federal Trade Commission (FTC) is also escalating its scrutiny of cloud providers.Ongoing Investigations:
- Microsoft: The FTC recently launched a "sweeping investigation" not just into Azure but also the company’s broader software licensing and cybersecurity practices.
- Amazon: The FTC is exploring claims that Amazon's Prime subscription service practices misled users. Additionally, Amazon’s cloud market behaviors may come under the scanner.
- Google: Both the FTC and the Department of Justice (DoJ) are actively investigating Google, with the DoJ going as far as recommending that Google offload its browser (Chrome).
How Does This Impact Everyday Windows and Cloud Users?
For individual users and small businesses, the CMA investigation is far from a mere pie-in-the-sky topic. Let’s explore three real-world scenarios:1. Pricing and Vendor Lock-In (Small Businesses):
If Microsoft or Amazon are deemed to have engaged in anti-competitive practices, the CMA might require them to:- Reduce vendor lock-in techniques (e.g., hidden exit costs for leaving AWS or Azure).
- Provide better licensing terms so that running Windows or Office on competing clouds becomes more cost-competitive.
2. Government Digital Services (Public Sector):
Many UK government and public services rely on AWS or Azure. Any imposed behavioral remedies may:- Force greater transparency in pricing for government entities.
- Enable alternative providers like Google or IBM to gain a foothold in this market, possibly leading to more resilient infrastructure diversification.
3. AI and Generative Services Use Cases:
Most AI upstarts and university researchers deploy their projects on scalable clouds like AWS or Azure. If competition flourishes, it might lead to cost reductions for computationally-hungry applications like ChatGPT-like models or AI APIs.Potential Market Shake-Ups and What Comes Next
It’s a fascinating tug-of-war unfolding between regulators and tech leaders. Here’s what can spice things up in 2025:- If remedies are enforced in the UK, European regulators (such as the EU) might adopt similar measures. Cloud leadership is a multi-territory game.
- Smaller cloud operators or challengers (think Linode or the smaller divisions of IBM Cloud) could use regulatory protection to bolster their position.
- Developers and startups may flock to more cost-effective, cloud-neutral models, using tools like Docker, Kubernetes, and hybrid clouds to hedge their providers.
Final Thoughts: A Cloudy Outlook or Clear Skies?
The CMA’s investigation—and the delay—symbolize a pivotal moment for one of the most transformative industries of our time. As businesses increasingly "live in the cloud," everything from competitiveness and innovation to service pricing is riding on regulators’ findings.WindowsForum.com will keep you posted on every twist and turn. Buckle up—2025 might bring winds of change for cloud computing as we know it. Until then, keep an eye out for updates, and feel free to share your thoughts on how these developments might affect you or your organization.
Let’s brainstorm in the comments! Is this the end of the cloud duopoly? Or just another regulatory flash in the pan?
Source: Silicon UK CMA Delays Cloud Computing Report Until 2025
