The Government Stands Accused Mixed Messages About Its Commitment to Position the uk as a Technology Superpower, after publishing guidance that will pay the way for more public sector bodies to host their workloads and applications in overseas cloud environments,
The department for science, innovation and technology's (DSIT's) Overseas Data Guidance Dropped on 5 February 2025, and states that public sector organizations can use clouds Ide of the UK for “Resilience, Capacity and Access to Innovation” Reasons .
This aligns with the guidance's broader recommendation that public sector bodies adopt a “Considered and Controlled” Multi -region Approach to Hosting their applications and Workloads, which is Compatible With UK Law.
“Under the government's cloud-friendly policy, Organizations Should Consider the Best Place to Store and Process Data as Non-Youk Services Can Be More Cost-Effective, More Sustainable Ording Well as provide an alternative location for disaster response Plans, “The Four-Page DSIT Guidance Document Stated.
This guidance is designed to “reinforce existing Legislation” and does not constitute a change in policy, said dsit, with the organization stating that some public sector bodies will have been . “Government has had a cloud-friendly policy 2013, [and] This predats many of the uk regions from the cloud vendors and therefore organisations may have alredy hosted data [classified as] 'Official' in overseas regions, “The Guidance Stated.
This is despite the government Security Classification Policy (GSCP) Having, Until an update in June 2023, Tight Restrictions Regarding The Use of Non-YouK Cloud Services, Owen Sayers, An Enterprise Architect with more than 20 years' Experience in Delivering National Policing SystemsTold Computer Weekly.
“It's clear this [DSIT] Guidance Acknowledges That Despite these restrictions, the UK government has pushed a lot of critical eggs into these offshore cloud platforms, and it should be cleared [GSCP] Policy saying not to do so, “said sayers. “The [government’s] Approach now seems to be that 'we are where we are' and to double down on continuing to do so. '
The Prevalence of Overseas Dataceantre Use
It is Dificult to say with any certain how prevalent the use of overseas datacentres may have been by ben by public sector bodies up to the point of dsit's guidance coming out.
The cloud-first policy, meaning, is mandated across Central Government and Credited with Accelerating Adoption of Off-Premise Technologies Throughhal SITEHUT SINCE ITS ITS ITS ITS ITS ITSICE INTE
In other parts of the public sector, where organisations are strongly encountered to follow the cloud-first policy, Anecdotal reports suggested it has a less potent impact.
What we do know is that Amount of Public Sector Data Stored on Cloud servers owned and operated by companies with the potential to host it overseas marked OUD GINTS Amazon Web Services (AWS) and Microsoft in Late 2016.
In the wake of that development, A number of domestic uk cloud providers when a marked downturn in demand for their servicesAs Public sector Buyers Jumped Ship and Migrated Over to Aws and Microsoft.
Proof of that can be seen in the government's digital marketplace figures, which document the Amount of cloud spend transacked through the public sector g-cloud Proceed Proceeds.
Its figures show that AWS Had Secure Just 2.93m during the 57-month period between the framework making its debut in March 2012 and amazon opening its first uk data Pened its uk datacentre, the Company Had Banked £ 149m in G-Cloud Sels. To-date, aws have accrued £ 1.1bn in public sector speed through g-cloud.
G-Cloud Sales Data
Microsoft's G-Cloud Sales Data Follows A Simlar Trend, with the company making a modest amount of money from the framework before the opening of its uk datacentre in September 2016.
At the time, the company's uk cloud region was spoken about by microsoft REPRESENTINES in the National Press as Allowing Public Sector Bodies to use its cloud services while ensuring their data remains in the uk.
However, Reporting by Computer Weekly Reveled in the Summer of 2024 a disclosure by software giant microsoft that it could not guarantee the sovereign of policy
At the time, The company declined to comment on where it could guarantee sovereignty for other forms of public sector dataPrompting questions about how much of the uk government's it estate may have alredy been offshored to overseas datacentres.
In light of the microsoft disclosures, what makes the dsit guidance “remarkable” in sayers' View is not the fact that it might lead to increase usage of overseas cloud Compute Resources by the Public Sector.
“We know they've been doing that for years, but what makes this a remarkable piece of guidance is that it specifically says ll probally have to seek it elsewhere ”, He said.
It's not diesful to see whose conclusion, give the guidance document, opening line reads: “in order to provide Resilience, Capacity and Access to Innovation, Organizations May NEED oftware-a-a-service solutions outside of the uk. “
What makes this admission all the more starting for sayers is hot on the heels of a running of government announs about its plans to transform the uk into a technology Ding out the country's Expertise in Artificial Intelligence (AI ).
Action plan
The UK Government's 50-Point AI Opportunities Action Planwhich dropped in mid-january 2025, features a commitment to building sovereign ai capability in the uk through vast investments in creating Supercomputing facilities that will increase the nation's high-performance computing (HPC) Capacity 20-Fold by 2030,
The Action Plan also features a Government Commitment to Develop a long-term Compute Strategy to Ensure So-called ai growth zones across the country.
These zones will be shed in specially designated parts of the uk that have “ENHANCED Access to Power and Support for Planning Approvals”As detailed in the action plan document, as part of a Broader push by the government to fast-track uk datacentre developments,
How do that commitments square with the guidance's contents that public sector organizations might be better off making use of overeseas datantres, asked calls.
Another part of the guidance states that “Not all regions from a cloud provider are equal”, with some offering better pricing, a wider range of services, access to more Computer Capacity, or Enhanced UPTIME and Ads In DSIT's View, this is whose public sector organisations should not be limiting themselves to using uk-based cloud regions.
“The government is sending out mixed messages here, beCause the Prime Minister, Chancellor and the DSIT MINITERS ARELL PROMOTING The UK as a Leader of Innovation and Artificial Intelligence, Whereas of GUDECE of GUDECE 'll probally have to go overseas to find That, “Continued Sayers.
British Supplier Backlash
It is not just sayingers who feels that way, as mark boost, Ceo of UK-Based Cloud Services Provider Civo, Described The DSIT Guidance as Bad News for the UK Economy, WHILEL ALSO ALSO ALSO ALSO AND The wake of the uk's Recent run of ai announsements.
“This guidance from the government is bad for British business, bad for the UK's Economy, and WorsE for Government Departments,” He said.
“Dsit says it wants to champion the uk's fast-winding tech market, but is see semingly discouraging public sector bodies from Choosing British Businesses. Intad, It's Channelling Taxpayers' Hard-Earned Cash Offshore and Further DisintingVing Tech Investment into the UK.
“Over the Years, We've given away so many industries,” said boost. “Now, on the brink of another industry revolution, the government seems intent on doing the same with ai. This is not only wrong, but potentially dangerous. “
Boosting competition
In a statement Announs the guidance's roll-out, DSIT Said Supporting Public Sector Organizations with Moving more of Their Data Out to Overseas Datacentres will boost competition and brings about it resilcy benefits, without Compromising the use Y Protections.
However, these assurations do not hold time sway with boost. “The guidance may make gestures at adequate data protection and security practices, but the fact is that if an organization is processing it on foregic and transforring it is acrous, Subject to Foreign Laws. “
“For Government Departments Handling Sensitive Data – Including on Health and National Security – This is an unacceptable Level of Risk,” He said.
Where DSIT Gets Right with its guidance is where it talks about Id boost.
“But there are planty of provides in the uk who could satisfy this,” He said. “We have a thriving ecosystem of cloud providers who are beGining to offer full solutions for both the public and private sector.”
And what these providers need is the full support of the government, raather than guidance advising public sector it boys to look overseas to access the cloud computing services that Require.
“The Government should be supporting british business and investment in our Sovereign Capability, boosting our resilience by nurturing an ecosystem of homegrown provides,” Said Boost. “INTEAD, they see to be encouraging public bodies to look elsewhere at the expenses of our data security, and our tech economy.”
Nicky Stewart, Senior Adviser to the Open Cloud Coalition, Which Champions Competition in the Public Cloud Market, Told Computer Weekly Sherees With The GUIDANCE's View THE PUBLICS AREVICES ARENT SERING Ess resilient by poor technology.
What She is Less Convined about are the competitive benefits being touted by dsit in its guidance. In her opinion, if the government has a competition Concerns about cloud, it should be acting instalad on addressing the red flags raised by the competition and markets authority (CMA) About the Hold the Us Hyperscalers have on the UK Cloud Market.
“We agree [with the government] That Public Services are Being Held Back And Made Less Resilient by Poor Technology [and] The best way to fix the situation is to act on anti-competivity practices identified by the CMA, ”She said. “A more competitive market will foster innovation, investment and job creation, and ultimately drive long-term value for the public sector, and for taxpayers.”
Computer Weekly contacted DSIT for a response to the comments made in this story, particularly about what the guidance signals about the strength of the government's commitment towards supporting homegrown cloud providers.
In response, a dsit speakesperson said the government is “Fully committed to fostering a competitive and resilient cloud market” Re sector to be a key component of the uk's digital economy.
“We are actively driving growth by attracting global investment, with billions already second for datacentre development and expansion, enhancing both infrastructure and new
“Using Overseas Datacentres Strengthens Overall Resilience, And Our Multi-Region Cloud Guidance Gives Public Sector Organizations The Flexibility to Selection to Select the Best Clore Hosts-Whole Erseas, prioritying performance, cost and reliability while ensuring security and compliace. “