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Multicloud is "the best cure" to market monopolisation

(Image credit: Image Credit: Melpomene / Shutterstock)

Organisations in the public sector should choose multiple cloud service providers instead of opting for just a handful of market leaders, a new report issued by the Internet Economy Foundation and Roland Berger claims.

The report argues that such an approach would ensure that the wider cloud computing market does not become monopolised by the mighty few.

Multicloud strategy aside, organisations are also advised to create clauses in their IT procurement contracts to make sure users deploy interoperable services, as well as to enable the portability of the workload.

“Monopolisation similar to what we have witnessed in the markets for operating systems, e-commerce and search engines is a real threat,” says the report.

“Yet, in the cloud sector, that would deal a fatal blow to market diversity and competition. Customers would have fewer offerings to choose from. Moreover, a lack of competition would stifle innovation and erode financial value.”

Multicloud would also protect organisations from supplier lock-in.

“The public sector is itself a major customer for cloud computing services,” says the report. “In this capacity, public administrations [governments] must support a balanced cloud portfolio as part of a multicloud strategy. In other words, they should source the most suitable cloud solution for each individual task area. Multicloud strategies thus sharpen competition between different cloud computing players and help prevent individual companies from dominating the market.”

The government also has a role to play in preventing the monopolisation of the market, by creating market conditions that make it harder for monopolies to form. Governments should roll out standardised laws throughout Europe, removing potential barriers and allowing smaller cloud providers from competing with the big boys.