When it comes to tech, breaking up with U.S. suppliers is hard to do.
What happened: The federal government said it will give more cloud computing contracts to Canadian businesses after facing backlash over a plan that would have seen only U.S. tech giants pre-approved for cloud computing work.
- Internal documents showed that the feds faced industry pushback over its initial list of approved contractors, which included only the Canadian cloud divisions of Google, Amazon, Microsoft, and Oracle, the Globe and Mail reported.
Why it’s happening: Trade tensions with the Trump administration have forced Canadian governments to reconsider relying on American suppliers for procurement, and created an opening for smaller Canadian providers to push for priority over U.S. giants.
Why it matters: Governments trying to buy domestically are running into the harsh reality that most of the world’s important tech companies are based in the U.S. Decoupling from those American tech giants may be easier said than done.
- Still, limiting procurement to only American suppliers may no longer be politically viable, even when they can offer more advanced tech.
Yes, but: If the federal government wants more made-in-Canada tech success stories, prioritizing local suppliers for its contracts may not be a bad place to start.—TS