{"id":68910,"date":"2023-10-05T04:56:01","date_gmt":"2023-10-05T08:56:01","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/amazon-and-microsoft-face-probe-in-the-u-k-over-cloud-services\/"},"modified":"2023-10-05T04:56:04","modified_gmt":"2023-10-05T08:56:04","slug":"amazon-and-microsoft-face-probe-in-the-u-k-over-cloud-services","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=68910","title":{"rendered":"Amazon and Microsoft face probe in the U.K. over cloud services"},"content":{"rendered":"
\n

Britain\u2019s competition regulator said Thursday it\u2019s launching an investigation of market leaders Amazon.com and Microsoft over cloud services.<\/p>\n

The U.K. Competition and Markets Authority is launching the probe after a referral from the Office of Communications, which found Amazon\u2019s
\n AMZN,
\n +1.83%<\/bg-quote>
\n AWS and Microsoft
\n MSFT,
\n +1.78%<\/bg-quote>
\n had a combined market share between 70% and 80% in the U.K. last year for cloud infrastructure, which was worth as much as \u00a37.5 billion ($9.1 billion).<\/p>\n

\n

While there is competition between cloud providers when attracting new customers, a report found it\u2019s hard for customers to switch and use multiple suppliers.<\/p>\n

In particular, Ofcom said it was concerned about egress fees, which are the charges customers pay to transfer their data out of a cloud; a lack of interoperability and portability; and committed spend discounts that are structured to use a single provider.<\/p>\n

Messages left with Amazon and Microsoft weren\u2019t immediately returned.<\/p>\n

Alphabet\u2019s
\n GOOGL,
\n +2.12%<\/bg-quote>
\n Google is the main challenger in the U.K., with a share between 5% and 10%. Other competitors include Oracle
\n ORCL,
\n +2.45%<\/bg-quote>
\n and IBM
\n IBM,
\n +0.48%<\/bg-quote>,<\/span>
\n what Ofcom calls \u201cdistant\u201d because of the difficulty of building a rival ecosystem of products delivered of a global network of data centers.<\/p>\n

In the most recent quarter, AWS accounted for 70% of Amazon\u2019s operating income, and what Microsoft calls its Intelligent Cloud accounted for 43% of its operating income.<\/p>\n

The U.K. cloud inquiry is happening at the same time Google is facing an antitrust trial in the U.S., where Microsoft is the government\u2019s star witness.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Britain\u2019s competition regulator said Thursday it\u2019s launching an investigation of market leaders Amazon.com and Microsoft over cloud services. The U.K. Competition and Markets Authority is launching the probe after a referral from the Office of Communications, which found Amazon\u2019s AMZN, +1.83% AWS and Microsoft MSFT, +1.78% had a combined market share between 70% and 80% […]<\/p>\n","protected":false},"author":1,"featured_media":68911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-68910","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nAmazon and Microsoft face probe in the U.K. over cloud services | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Britain\u2019s competition regulator said Thursday it\u2019s launching an investigation of market leaders Amazon.com and Microsoft over cloud services. 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