The CEO of Beeks expresses concern over UK banks partnering with US cloud giants, citing potential conflicts of interest.
- Banks are sharing core data with companies that have declared plans to enter financial services, raising strategic risks.
- Beeks’ financial performance showcases significant growth amid these industry concerns.
- The UK’s competition authority is scrutinising major cloud firms for alleged anticompetitive conduct.
- Microsoft faces criticism from Google over its licensing practices in the UK cloud market.
Gordon McArthur, CEO of Beeks, has articulated his view that British banks collaborating with large US cloud providers is strategically unwise. He argues that partnering with organisations that have openly expressed ambitions to launch financial services presents potential risks and conflicts of interest.
McArthur questions why banks would entrust their critical infrastructure and data to companies that could become direct competitors. He describes this as akin to enabling these large tech entities, perceived as aggressive commercial rivals, which could pose threats due to their substantial influence over the digital economy.
On a financial note, McArthur underscores Beeks’ robust growth, revealing a 27% increase in sales to £28.5m for the fiscal year ending June. The firm’s pre-tax profits surged 68% to £3.9m, buoyed by securing numerous cloud contracts, including one with a major UK bank, leading to a 6% rise in Beeks’ share price.
At a regulatory level, the UK Competition and Markets Authority (CMA) is actively investigating the practices of prominent US-based cloud providers. This inquiry, initially set for completion by April 2025, is now extended to August 2025, due to the complex issues identified in the market that require further examination.
Adding to the tension, Google has publicly criticised Microsoft’s licensing practices, alleging they significantly limit competitive opportunities within the UK cloud sector. The accusation highlights a broader industry concern regarding market power dynamics, with Google advocating for prompt corrective measures.
The intersection of cloud computing collaboration with competition and regulatory concerns underscores the complexity of the current market landscape.
