UK IaaS market faces deeper probe by competition regulator

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Ofcom to refer findings to CMA – which insiders say will home in on egress fees, interoperability and licensing

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Another told us: “We expect the investigation to focus on the technical and non-technical barriers to interoperability, which obviously includes some of the licensing stuff. It would also focus on egress, which is a big debate, and might look into the topics of cloud credits in the context of AI.” As of August, for example, AWS's monthly data transfer costs for outbound data to the public internet are $0.09 per GB for the initial 10TB, and it then drops on a tiering basis. These prices are for EC2 virtual machines and S3 storage.

Digital Ocean claims AWS egress fees can be five times more expensive than smaller rivals, including its own. A source close to AWS told us the company is braced for greater market scrutiny, and is “already moving on most of the issues.

Cloud licensing practices by some vendors, mostly notably Microsoft, is also expected to fall under the spotlight when the Competition and Markets Authority launches the probe. Microsoft's own marketing material says it is five times more expensive to run Microsoft wares on AWS, Google or Alibaba than on Azure, yet there is no technical reason for this.

 

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