Last night’s announcement that Microsoft made $26.7 billion from its cloud business and increased its profits by 21 per cent was bad news for other providers, according to Civo CEO Mark Boost.
For those not in the know, Vole reported some outstanding results after the bell last night, and among its good news was that its Server products and cloud services revenue increased 24 per cent, driven by Azure and other cloud services revenue growth of 31 per cent.
But while that is good news for Vole and all who sail on her, Boost said Big Tech was strangling the cloud market.
“So, today’s results show accelerated earnings and growth, so it shouldn’t shock anyone. It should be a warning call to regulators looking at the current state of the cloud market,” he said.
“It’s clear that the hyperscalers benefit from anti-competitive practices like combining enticing free credit schemes with excessive egress fees, which ultimately lock users in and prevent them from leaving. A monopoly is forming, damaging the ecosystem and ultimately breaking the cloud.”
He called for a new approach to the cloud, saying that plenty of challenger providers were prioritising users and making the cloud flexible, equitable, and easy to use. However, these results show that Big Tech still dominates the market share.
“It’s no longer sufficient to sit on the fence. We need to see action that prevents these damaging practices. Otherwise, Big Tech’s coffers will continue to grow at the cost of customers and the whole cloud ecosystem,” Boost said.
