REGULATION
“The decision made by CMA to investigate Microsoft is encouraging,” said Mark Boost, CEO, Civo. “But the decision to exclude AWS raises practical concerns with both providers being structured in the same way from a structural lock-in perspective, which could create a regulatory imbalance between the two parties that would keep one side unchallenged. “Regulatory credibility depends on consistency,” added Auphan. “The CMA’s own cloud investigation found that both Microsoft and Amazon hold significant unilateral market power. Accepting voluntary commitments from AWS while launching a formal investigation into Microsoft creates an uneven playing field that neither protects UK businesses nor restores genuine competition. “We’ve seen what voluntary commitments look like in practice: they’re slow, hard to enforce, and easy to roll back. If the CMA is serious about a fair cloud market, it needs to apply the same scrutiny to both dominant players. Anything less risks fixing half the problem while leaving the structural issues intact.” “The actions proposed in Point 33 provide evidence of the desire to address such market imbalances; however, it is important that ambition is met by additional, enforceable measures being implemented,” continued Boost. “Voluntary arrangements made with parties outside of the SMS framework will not provide real impact, and by delaying its final decision regarding Microsoft and excluding AWS altogether, there is a risk for the CMA to unnecessarily prolong uncertainty and miss an opportunity to future-proof the UK’s digital infrastructure. “The current announcement does not provide adequate solutions to solve the serious issues surrounding the dominance of these key foreign-based hyperscalers. There needs to be a fair digital market in which domestic innovation is encouraged, alongside continuing to help build opportunities for international collaboration and trade.” Feeling the Pinch In the context of resellers and MSPs, the “issue” that arises from a monopoly or duopoly is that there is less differentiation and innovation within a marketplace that is so crucial for almost any organisation to operate. As Arnold explains, this then has a knock-on impact on a reseller’s ability to make money. “In a duopoly environment, resellers and MSP’s often become more reliant on the commercial models, pricing structures and partner programmes of a handful of providers. That can limit their ability to differentiate, as many are effectively working within the same frameworks and selling similar services built on the same platforms. “Margins can also come under pressure. As hyperscalers continue to expand their direct relationships with customers, particularly at the enterprise level, resellers and MSPs can find themselves pushed further down the value chain, focusing more on implementation and support rather than strategic advisory. “There is also less flexibility when it comes to offering alternative solutions. If
Mark Boost
civo.com
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The current announcement does not provide adequate solutions to solve the serious issues surrounding the dominance of these key
foreign-based hyperscalers.
CLOUD RESELLER NEWS
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