Microsoft has agreed to suspend software audits for members of the Cloud Infrastructure Service Providers in Europe (CISPE) trade group for two years. This decision is part of a recent settlement aimed at addressing antitrust complaints from several European cloud providers. The agreement includes a payment to the trade group and some technical concessions, providing relief to CISPE members from compliance scrutiny by Microsoft. This move is seen as a strategic effort by Microsoft to resolve antitrust issues and improve its standing with European cloud providers.
The suspension of software audits is a key element of the settlement between Microsoft and CISPE. The agreement aims to alleviate concerns about price discrepancies when using Microsoft’s software on its own Azure platform versus other European cloud infrastructures. By halting audits, Microsoft provides CISPE members with a temporary reprieve from compliance checks, which have been a source of contention.
The settlement also includes a commitment from Microsoft to offer a version of Azure Stack HCI tailored for European cloud providers. This version will include features such as multi-session virtual desktop infrastructure based on Windows 11, free extended security updates, and pay-as-you-go licensing for SQL Server. These concessions are designed to address the claims made by European CISPE members and ensure fair software licensing practices.
The agreement reflects Microsoft’s significant market power and its ability to influence the competitive landscape in the cloud computing industry. By suspending audits and making technical concessions, Microsoft aims to foster better relationships with European cloud providers and avoid further regulatory scrutiny.
Impact on European Cloud Providers
The suspension of software audits is expected to have a positive impact on European cloud providers. The temporary halt to compliance checks will help avoid disruptions and allow providers to focus on their core business operations. This relief is particularly important for smaller cloud providers who may lack the resources to navigate complex audit processes.
The introduction of the tailored Azure Stack HCI for European cloud providers is another significant benefit. This product will enable providers to offer Microsoft applications and services on their local cloud infrastructures, meeting the demand for sovereign cloud solutions. The collaboration between Microsoft and CISPE to release this enhanced version of Azure Stack HCI is expected to strengthen the competitive position of European cloud providers.
The establishment of an independent European Cloud Observatory (ECO) to monitor the development and ongoing evaluation of the product is a crucial aspect of the agreement. The ECO will include representatives from Microsoft, cloud infrastructure vendors, and European customer associations. This body will make periodic public assessments, reports, and recommendations to ensure fair software licensing in the cloud.
Future Prospects and Challenges
While the suspension of software audits provides immediate relief, the long-term impact of the agreement will depend on Microsoft’s ability to deliver on its commitments. Microsoft has a nine-month deadline to make good on its promise to deliver the Azure Stack HCI for Hosters product or to resolve software licensing issues in other ways. If Microsoft fails to fulfill its obligations, CISPE has the option to refile its complaint.
The agreement does not prevent CISPE or its members from complying with regulators’ requests for information. CISPE will continue to campaign for fair software licensing in the cloud, ensuring that the interests of European cloud providers are protected. The collaboration between Microsoft and CISPE is a positive step, but ongoing vigilance will be necessary to maintain fair competition in the cloud computing industry.
In conclusion, Microsoft’s agreement to suspend software audits for CISPE members marks a significant development in the ongoing efforts to address antitrust concerns in the cloud computing industry. The settlement provides immediate relief to European cloud providers and includes technical concessions that aim to ensure fair software licensing practices. As the industry continues to evolve, the collaboration between Microsoft and CISPE will play a crucial role in shaping the competitive landscape and promoting fair competition.
