Designating Microsoft, Google, Amazon and Oracle as ‘critical third parties’ will help improve resilience, says Treasury
Governments are increasingly realizing their dependency on a few dominant cloud providers, prompting regulatory action to address systemic risks and ensure national digital resilience.
This move highlights a growing global trend of governments asserting greater control over critical digital infrastructure, impacting the operating models and growth strategies of major cloud providers.
Cloud providers will face enhanced regulatory oversight and potentially more stringent operational requirements, diversifying geopolitical risks for their global operations.
- · UK government
- · Local cloud providers
- · Cybersecurity firms
- · Microsoft
- · Amazon
- · Oracle
Major US cloud providers will need to allocate significant resources to comply with new UK scrutiny and regulatory demands.
Other nations may follow the UK's lead, leading to a Balkanization of cloud services and increased compliance costs for global tech companies.
This could accelerate the development of sovereign cloud solutions and data localization efforts, challenging the traditional global scale economies of cloud computing.
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Read at Financial Times — Technology