Ofcom to probe cloud, messenger and smart-device markets
Ofcom is to examine the position of Amazon, Microsoft and Google in cloud services, as part of a new programme of work to ensure that digital communications markets are working well for people and businesses in the UK.
Cloud computing is a huge and fast-growing market[1], which uses remote servers to offer services such as software, storage and computing power. The user, who could be a person or business, makes use of these services but doesn’t manage them directly. The cloud has become an essential part of how products are delivered to telecoms users, as well as viewers and listeners of TV, radio and audio content.
In the coming weeks, Ofcom will launch a market study[2] under the Enterprise Act 2002 into the UK’s cloud sector. The largest providers of cloud services – known as ‘hyperscalers’ – are Amazon Web Services (AWS), Microsoft and Google. Collectively, these three firms generate around 81% of revenues in the UK public cloud infrastructure services market.
Our study will formally assess how well this market is working. We will examine the strength of competition in cloud services generally and the position the three hyperscalers hold in the market. We will also consider any market features that might limit innovation and growth in this sector by making it difficult for other companies to enter the market and expand their share.
