The CEO of Beeks, a UK cloud firm, described the partnership between British banks and US tech giants as ‘bizarre’.
- Gordon McArthur warned banks about the risks of partnering with potential rivals that desire to enter the financial services market.
- Beeks observed significant growth, reporting a 27% sales increase and securing major new contracts.
- The UK competition authority investigates potential anticompetitive behaviour in the cloud sector, with Google criticising Microsoft.
- Despite ongoing investigations, there is scepticism regarding the outcome due to perceived strong influence from major tech players.
Gordon McArthur, CEO of the UK-based cloud service provider Beeks, publicly criticised British banks for what he describes as a ‘bizarre’ partnership with major US cloud companies. According to McArthur, these partnerships are not in the best interests of banks, as these US giants are likely to develop competing financial services. He described these organisations as some of the ‘most aggressive commercial organisations,’ with a clear intention to venture into financial services, questioning the rationale behind sharing critical data with them.
Beeks, a cloud provider listed on AIM, reported a commendable 27% rise in sales to £28.5 million for the fiscal year ending in June. This growth is attributed to securing several new cloud contracts, including a significant deal with a leading UK bank. The company’s pre-tax profits surged by 68% to £3.9 million, leading to a 6% increase in Beeks shares, which have more than doubled in value since the start of the year.
The UK’s Competition and Markets Authority (CMA) is currently scrutinising the practices of some of the world’s largest cloud firms amid allegations of anticompetitive behaviour. The investigation’s deadline was initially set for April 2025 but has been extended to August 2025 to allow for more comprehensive exploration of these complex issues.
In a submission to the CMA, Google openly criticised Microsoft’s cloud market practices. Google accused Microsoft of imposing software licensing restrictions that ‘risk irreversibly tilting the market in Microsoft’s favour’ and urged for ‘urgent and timely action’ against these practices. Microsoft countered these claims, stating that the market is ‘highly dynamic and rapidly evolving,’ and disagreed with Google’s assessments.
McArthur expressed his doubts about the effectiveness of the CMA’s investigation, citing the substantial lobbying power of major tech firms, which he believes may undermine rigorous regulatory outcomes.
The collaboration between UK banks and US cloud giants faces scrutiny amidst growth for domestic providers and regulatory challenges.
