Amazon Web Services (AWS) continues to try to increase its UK market share, but Microsoft Azure is rapidly gaining ground. A report by the Competition and Markets Authority (CMA) highlights that AWS, despite its leading position, is experiencing a slight decline in market share.
In contrast, Microsoft Azure shows significant growth in both revenue and new user acquisition, accompanied by higher profit margins. The CMA is also investigating potential competitive barriers, such as Microsoft's software licensing practices and data egress fees.
Amazon Web Services (AWS) remains the leader in the UK cloud market, but Microsoft Azure is rapidly closing the gap. Azure shows the fastest growth in both revenue and new customer acquisitions. According to a report by the Competition and Markets Authority (CMA), AWS's market share is slightly declining, whereas Microsoft Azure's market share has seen significant growth.
Microsoft's growth is attributed to not only acquiring more customers but also achieving higher profit margins. This trend is reshaping the competitive landscape, suggesting a robust challenge to AWS's dominance.
The CMA is also scrutinizing certain practices that could be hindering fair competition. Key among these are Microsoft’s software licensing terms, which may favour its cloud services, and data egress fees, which can be a deterrent for customers wanting to switch providers.
These findings are part of a broader effort by the CMA to ensure a competitive cloud services market in the UK, promoting fair practices and fostering an environment where multiple providers can thrive.
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