A new group dedicated to fostering openness and interoperability in the cloud market just launched to support competition authorities looking into possible anti-competitive behavior among major players in the industry. This group, called the Open Cloud Coalition (OCC), kicked off on October 29, 2024, with ten founding members all advocating for a more open and competitive cloud environment.
Among the founding members is Google Cloud, which has just taken action against Microsoft, filing a complaint with the European Commission over concerns about its cloud licensing practices. Other members include big names like Centerprise International, Civo, and Gigas, as well as smaller companies such as ControlPlane, DTP Group, Prolinx, Pulsant, Clairo, and Room 101.
Nicky Stewart, a spokesperson for the OCC and a former chief of ICT for the UK Cabinet Office, shared that the coalition aims to attract more members from various company sizes. “From major players like Google to small SMEs, we want this coalition to represent a wide range of suppliers,” she said.
The timing of this coalition’s formation is crucial. Regulatory bodies worldwide are scrutinizing the largest cloud providers for potential anti-competitive practices. For instance, the UK’s Competition and Markets Authority (CMA) launched an investigation in October 2023 after Ofcom found signs of anti-competitive behavior by Microsoft and AWS. Similar inquiries are underway in Spain and Denmark.
As businesses depend more on cloud services, many find themselves locked into difficult agreements, facing high costs when trying to switch providers or adopt multi-cloud strategies. The OCC plans to change that.
Stewart pointed out that recent regulatory actions are shedding light on how hyperscalers operate, encouraging customers to voice their concerns. “The Ofcom report and CMA investigation have made companies reconsider their relationships with hyperscale providers,” she said. “Many are now feeling empowered, and that’s one reason we’ve created this coalition. It’s time to raise our voices.”
One of OCC’s main goals is to ease the process for businesses when they want to switch cloud providers or add new ones. They want to break down barriers like high costs or penalty fees in this process.
“As the cloud grows more essential, businesses often feel trapped by restrictive agreements,” Stewart noted. “We’re here to advocate for a more flexible market that promotes open standards.” She added that the current cloud market lacks the necessary fairness to drive innovation and competition.
Diego Cabezudo, CEO of Gigas, emphasized the importance of giving all businesses the freedom to choose their cloud providers. “Joining the Open Cloud Coalition allows us to advocate for a fair cloud market that prioritizes customer choice and service quality,” he said.
Ashley Ward, CTO of ControlPlane, described the coalition as a transformative force in the cloud industry. “We’re pushing for an environment where businesses can operate without the constraints of vendor lock-in,” he stated. “Together, we’re shaping the future of cloud services with a focus on fairness and competition.”
