The UK Residence Workplace has signed a £450m cloud cope with AWS amid rising scrutiny

The UK Residence Workplace has signed a £450m cloud cope with AWS amid rising scrutiny

The three-year deal, value £450,281,369, begins on 1road December and falls throughout the G-Cloud 13 framework.

The contract, which can not essentially attain the total quantity specified, is for the availability of public cloud internet hosting providers to the Residence Workplace. Funds shall be distributed over the contract interval.

Particulars of the providers AWS will present stay undisclosed, though the numerous quantity means that AWS cloud platforms are poised to play a pivotal function within the Residence Workplace’s digital initiatives.

This newest settlement follows a collection of collaborations between the Ministry of Inside and AWS.

In 2020, the 2 entities entered right into a £100 million contract, which is now set to run out.

The newest G-Cloud 13 framework settlement underscores the federal government’s dedication to utilizing cloud applied sciences to boost effectivity and scalability throughout varied departments.

The deal comes at a essential time for AWS, as each Amazon and rival Microsoft face rising scrutiny from the UK competitors regulator.

Final yr, a report by the Middle for Worldwide Company Tax Accountability and Analysis (CICTAR) and suppose tank TaxWatch revealed that AWS had secured UK public sector contracts value greater than £600 million since 2017.

The report additionally highlighted issues over tax funds, with AWS allegedly avoiding £84 million in tax over the identical interval.

The Residence Workplace has emerged because the UK’s largest public sector buyer for AWS, paying the cloud big £225 million between 2017 and 2022, in keeping with a CICTAR report.

The Competitors and Markets Authority (CMA) is at present learning the cloud panorama to find out the equity of the enjoying discipline, particularly given the dominance of AWS and Microsoft in latest public sector contracts.

With the UK cloud market beneath scrutiny, it’s estimated that the 2 corporations management as much as 80% of the £7.5 billion on-premises cloud infrastructure market.

The CMA investigation raises questions in regards to the sustainability of this dominance and the way it may impression competitors within the quickly evolving cloud providers sector.

Earlier this yr, AWS strengthened its presence within the UK public sector by securing a £20.8 million contract with the Division for Setting, Meals and Rural Affairs (Defra).

The deal included cloud internet hosting, ‘carry your individual licence’ software program administration providers, complete assist, managed {and professional} providers, together with coaching for Defra employees.

    (Tags for translation)Residence Workplace

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