Regulations will not curb cloud market monopoly. Arguably, it is hopeless to expect such an outcome for the foreseeable future. The internet is replete with posts championing regulation’s promise as the only feasible solution to the cloud market monopoly issue. Some who have ventured to look beyond regulations have championed a multi-cloud solution. Essentially, urging organisations to diversify their cloud subscriptions across several service providers.

Ultimately, both regulations and a multi-cloud approach will most likely take us nowhere. Instead, a blockchain-based decentralised cloud model is a more feasible solution.

Centralised monopolies

The cloud enables organisations to utilise remote, virtually limitless computational capacities on a pay-as-you-go basis. As a result, firms can maximise their available resources and significantly lower the costs of managing on-site infrastructure. This has resulted in a surge in demand for cloud computing services, which has boosted the centralised hyperscale service providers.

According to market data, Amazon, Microsoft, and Alibaba accounted for over 70% of the global IaaS public cloud service market in 2020. If we stay on the current course, this market dominance will likely continue even as the cloud market grows by 500% by 2030.

Worldwide IaaS Public Cloud Services Market Share, 2019-2020 (Millions of U.S. Dollars)

                                                                                                 Source: Gartner Says Worldwide IaaS Public Cloud Services Market Grew 40.7% in 2020

Why a cloud monopoly is worrisome

  • Data integrity issues – If you ignore a few niggling concerns such as data security, privacy, and lack of transparency, cloud monopolies are not so bad. Except, these are critical issues that affect both individuals and organisations in crucial ways. Centralised providers act as gatekeepers to sensitive data, and with little to no accountability, they have considerable leeway in utilising them as they see fit. 


  • Unfair pricing –  The lack of effective competition erodes the influence of supply and demand on price. In a highly monopolised cloud market, service providers could arbitrarily fix the price of computing resources and storage to the detriment of users like you. 


Why regulations are ineffective

Proponents of regulation ignore two critical hurdles to eliminating monopolies:

  • Fragmented governance ecosystem – Most hyperscale cloud service providers are based in the United States but provide cloud services for organisations and government institutions globally. This makes it challenging to reach a uniform regulatory framework for the cloud service market.


  • Monopoly lobbying – Hyperscale service providers have vast financial resources that enable them to influence regulatory policies even before they are drafted.


A multi-cloud solution

Diversifying cloud service providers is not an effective solution either as it ignores two crucial challenges:

  • Financial edge – Major service providers have a significant economic advantage thanks to scale, enabling them to provide quality service at a lower cost. Consequently, smaller service providers cannot compete effectively.


  • Consumer consensus – For the reasons outlined above, convincing many organisations to abandon established service providers such as AWS, Microsoft Azure, and Google cloud will be difficult.


A decentralised cloud solution

Among its various applications, Blockchain technology offers a unique cloud computing model that prioritises transparency and competition. An example of this approach to eliminating cloud service monopolies is our Cudos network. We aim to incentivise individuals and organisations to share and use dormant computing capacities. 

With Cudos, thousands of nodes spread worldwide offer near-limitless computational capacity at a fraction of the cost of centralised cloud models. The decentralised nature of this model ensures that no single entity has unfettered access to or control of private data. This effectively eliminates data monetisation incentives that are ever-present in the centralised cloud market.

As the demand for cloud services continues to grow, we cannot ignore the importance of ensuring a more competitive and accountable market. Regulations and service diversification are demonstrably limited in their capacity to curb monopolies in the cloud services market. The decentralised cloud model appears a more feasible solution at this point.

So, if you are as excited about creating a fairer and more decentralised cloud market, join us now! Since we’ve launched our incentivised testnet, Project Artemis, there are many ways to make a difference while getting rewards!

How to join?


For more: Join our Discord server | Join our Telegram community | Buy CUDOS | Become an Ambassador


About Cudos

The Cudos Network is a layer 1 blockchain and layer 2 computation and oracle network designed to ensure decentralised, permissionless access to high-performance computing at scale and enable scaling of computing resources to 100,000’s of nodes. Once bridged onto Ethereum, Algorand, Polkadot, and Cosmos, Cudos will enable scalable compute and Layer 2 Oracles on all of the bridged blockchains.


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