Britain’s public sector runs on US cloud, and that is now a billion-pound risk
TL;DR
Almost all of the UK public sector (95%, or 99% counting software on cloud) depends on US hyperscalers, concentrating billions of pounds and critical services in Microsoft, Amazon, and Google systems. Analysts warn this is a strategic risk given outages, the US CLOUD Act, and “black box” gateways. The CMA found AWS and Microsoft hold entrenched market power but opted for voluntary commitments rather than binding rules.
Britain’s public sector has become deeply reliant on a small number of US cloud giants, and analysts warn the concentration is now a strategic risk. Nearly all UK government organisations spend on hyperscale cloud, with the dependency running into billions of pounds a year.
Some 95% of central and local public-sector bodies spent on hyperscale cloud in 2023/24, according to a Computer Weekly data dive. Counting software that runs on those platforms, the figure rises to 99% across more than 1,100...
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