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EU cloud gang wins licensing concessions from Microsoft
GERMANY, JUL 18 – The agreement grants CISPE members pay-as-you-go licenses for Microsoft software at prices comparable to Azure, enhancing competition and supporting European cloud sovereignty.
- European cloud providers led by CISPE reached an agreement with Microsoft to offer pay-as-you-go licensing for Microsoft software via the Cloud Solution Program.
- The agreement followed CISPE's 2022 complaint to the European Commission alleging Microsoft imposed higher charges on rival cloud customers and faced regulatory scrutiny.
- Key concessions include privacy protections so CISPE members do not share customer details with Microsoft, and competitive pricing closer to Azure, though core issues like Entra ID dependency remain unresolved.
- Ryan Triplette criticized the deal as weak, stating it offers 'smoke and mirrors' while Microsoft gains more time to enforce restrictive licensing without expanding true customer choice.
- The outcome represents a partial victory enhancing privacy and pricing but leaves competition challenges in the EU cloud market, prompting calls for decisive regulatory action.
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