The UK Competition and Markets Authority (CMA) is being urged to publish an interim roadmap addressing Microsoft’s position in public-sector cloud and software. The argument is that clearer guidance could help public bodies make procurement choices that preserve competition as they adopt AI services, rather than prioritising immediate savings at the expense of long-term flexibility.
The article links the issue to two CMA reports on public procurement, introduced by chief executive Sarah Cardell at a Parliamentary event on 8 September. It says the reports highlight the potential for procurement to improve outcomes, while warning that a focus on short-term costs can undermine long-term value and competition.
Cloud services are presented as a key example. Microsoft products are already widely used across public-sector IT, making renewals comparatively straightforward while switching or diversifying can appear costly. The article argues that, taken together, these decisions have embedded Microsoft in public bodies’ data, identity and security systems, potentially limiting future competition in public-sector AI.
The CMA’s cloud market investigation concluded in July 2025 that competition was not working well. According to the article, Microsoft and AWS each had 30–40% of the market, with Microsoft’s share continuing to grow. It also points to barriers including data-centre costs and economies of scale, and says fewer than 1% of customers switch cloud providers each year, partly because of egress fees and technical obstacles. The CMA also found that Microsoft restricts the availability of some licensed products on AWS and Google Cloud, the article says.
The author argues that dependence could extend beyond cloud infrastructure as organisations build AI tools around existing software, data and identity systems. It says restrictions affecting Windows Server and SQL Server workloads on rival clouds may make it harder for organisations to move their data and adopt competing AI services.
The CMA accepted voluntary commitments from Microsoft and AWS on 31 March 2026, rather than adopting binding designations recommended by its investigators. The commitments included extending Microsoft’s free egress-switching window from 60 to 180 days and creating a mechanism for requesting cloud interoperability. A six-month review was promised. The CMA also opened a strategic market status investigation into Microsoft’s business-software ecosystem, including Windows, Office, Teams and Copilot, covering more than 15 million UK users, with a decision expected around February 2027.
The article describes these measures as a cautious first step and calls for quicker evidence that the commitments are working. It proposes that a roadmap address licensing on rival clouds, interoperability for identity and permissions, the portability of AI agents, and public-sector contracts with clear exit plans. It also calls for independently verifiable evidence that customers are switching providers and adopting multiple clouds.
The author says a roadmap could give public bodies more certainty when buying cloud and AI services, while clarifying how the CMA will assess whether competition safeguards are effective. The article warns that without such guidance, growing adoption of AI could make existing supplier dependence more difficult and costly to reverse.
Sources: TechRadar.