2024: A Year of Cloud Disruption, Scrutiny, and Emerging Players
2024 proved to be a pivotal year for the cloud computing landscape, marked by significant outages, escalating regulatory scrutiny, and the surprising emergence of new contenders. From major disruptions impacting critical public services to growing concerns over data sovereignty and market dominance, the year demanded attention from both industry professionals and policymakers. Here’s a comprehensive look at the key events that shaped the cloud in 2024.
Major outages highlight Cloud Dependency & Resilience Concerns
The year began with a stark reminder of our increasing reliance on cloud infrastructure. A significant outage at Microsoft Azure in January impacted a wide range of services,including those provided by HMRC and Lloyds Banking Group.
* This disruption prompted urgent questions from MPs regarding the government’s strategies for protecting public sector entities during downtime events involving their key suppliers.
* The incident underscored the need for robust contingency planning and a deeper understanding of the risks associated with concentrated cloud dependency.
Data Sovereignty Under the Microscope: Microsoft & Policing Data
Concerns surrounding data sovereignty continued to intensify, particularly regarding data hosted within public cloud environments. Computer Weekly’s ongoing examination revealed troubling details about Microsoft Azure‘s handling of policing data.
* Documents showed that sensitive policing data could be processed in over 100 countries.
* Microsoft was accused of actively obscuring this information from its customers, raising serious questions about transparency and control. (Source: Computer Weekly)
* This situation fueled calls for greater clarity and stricter regulations regarding data localization and access.
Procurement Challenges: G-Cloud 15 & SME Access
The launch of G-Cloud 15, the latest iteration of the UK government’s cloud procurement framework, was met with criticism. Concerns arose that the new entry requirements were overly burdensome for Small and Medium-sized Enterprises (SMEs).
* Potential suppliers expressed fears that the increased complexity would effectively exclude many SMEs from participating.
* This sparked debate about the CCS’s commitment to fostering a diverse and competitive cloud market. (Source: Computer Weekly)
* Ensuring SME participation remains crucial for innovation and preventing vendor lock-in.
Regulatory Pressure Mounts: EU competition Probes into AWS & Microsoft
Following the UK’s competition and Markets Authority (CMA) investigation, the European Commission launched its own antitrust probes into Amazon Web Services (AWS) and Microsoft.
* These investigations, conducted under the Digital Markets Act (DMA), aim to determine if the two cloud giants should be designated as “gatekeepers.”
* The goal is to assess their level of control within the European cloud market and ensure fair competition. (Source: Computer Weekly)
* The outcome of these probes could significantly reshape the cloud landscape in Europe.
The Rise of the “Neocloud”: Nscale‘s Rapid Ascent
Perhaps the most surprising development of 2024 was the emergence of “neocloud” providers,exemplified by the rapid rise of Nscale.
* Nscale quickly gained prominence, securing significant investment and government contracts despite being founded in May 2024.
* The company has received notable mentions in ministerial speeches and press releases related to the UK’s AI agenda. (Source: Gov.uk)
* Nscale secured a remarkable $1.1 billion in Series B funding, demonstrating investor confidence in this new breed of cloud provider. ([Source: Computer Weekly](https://www.computerweekly.com/news/366631959/AI-infrastucture-provider-Nscale-secures-11bn-in-series
