TL;DR
- The Cloud Infrastructure Service Providers in Europe (CISPE) report states that Microsoft’s compliance with a settlement agreement is off-track.
- The memorandum aimed to address software licensing disputes and create fair conditions for European cloud providers.
- Major concerns include delays in critical project developments related to Microsoft’s Azure Local.
- Failure to meet commitments may lead to resumed legal actions by CISPE against Microsoft.
Microsoft’s Settlement Deal with European Cloud Providers Faces Setbacks
Microsoft’s agreement with the Cloud Infrastructure Service Providers in Europe (CISPE) appears to be faltering, according to a recent report detailing the progress—or lack thereof—of Microsoft’s commitments under a settlement aimed at resolving software licensing disputes. The deal was established last summer, predicated on Microsoft making technical concessions to level the competitive playing field for cloud providers in Europe.
The report, prepared by the European Cloud Computing Observatory (ECCO), indicates that the status of Microsoft’s compliance is classified as Amber/Off-track. Francisco Mingorance, secretary general at CISPE, emphasized the importance of execution in adherence to the memorandum of understanding by stating,
“Any agreement is only as good as its execution, so we created ECCO to ensure that commitments made were delivered. This report is an important part of that process.”
Key Issues and Delays
Despite Microsoft reportedly fulfilling some initial obligations, such as the Guarantee of Flexible Virtualization Benefit Availability and Migration License Support, other significant areas have not progressed as expected. The report identifies two main areas— Hoster Product Development and Service Provider Licensing Agreement Program Support—with a Red status, indicating significant delays and insufficient progress. This has raised concerns among CISPE members about their ongoing challenges in competing with Microsoft Azure.
Furthermore, the report highlights troubling pricing practices, noting that “recent price changes by Microsoft appear to undermine this commitment.” There are instances where Microsoft charges significantly more for certain software when run on third-party infrastructure compared to Azure, exacerbating existing tension.
Implications and Next Steps
The growing dissatisfaction among European cloud providers is palpable. CISPE members have voiced concerns that if these issues are not addressed quickly, legal actions could resume against Microsoft. The ECCO report calls on Microsoft to evaluate the Azure Local product—previously branded as Azure HCI Stack—and confirm whether it aligns with the requirements of the memorandum of understanding.
Microsoft reportedly has nine months to rectify the identified shortcomings. Should it fail to meet the conditions of the settlement agreement, it might face renewed legal scrutiny, highlighting the precarious nature of its position in the European cloud market.
In summary, the CISPE report serves as a warning that while Microsoft has made strides in some areas, significant work remains to be done to ensure compliance and restore confidence among European cloud providers. The future of this alliance hinges on Microsoft’s ability to deliver on its commitments moving forward.
References
[^1]: “Euro cloud crew says we-won’t-sue deal with Microsoft is ‘off-track’“. The Register. Retrieved February 11, 2025.
