Microsoft commits to providing a version of Azure Stack HCI specific to European cloud providers.
Introduction
Presentation of CISPE
CISPE (Cloud Infrastructure Services Providers in Europe) is a European association representing numerous cloud service providers, including giants like Amazon, Outscale, and Ecritel. Founded to defend the interests of European cloud providers, the association fights for fair competition and just business practices in the cloud computing industry. CISPE plays a crucial role in monitoring the practices of major tech companies and intervening when these practices threaten the balance of the European market.
Presentation of Microsoft Azure
Microsoft Azure is one of the world's leading cloud computing services, offering a comprehensive range of solutions including storage, computing, and artificial intelligence services. Launched in 2010, Azure has become a pillar of Microsoft's strategy to dominate the cloud market, directly competing with other giants like Amazon Web Services (AWS) and Google Cloud Platform (GCP). Despite its commercial success, Microsoft Azure has been criticized for its licensing practices, accused of limiting competition and forcing customers to stay within the Microsoft ecosystem.
The Complaint by CISPE
In November 2022, CISPE filed a complaint against Microsoft with the European Commission. This action targeted Microsoft's licensing practices, deemed anti-competitive. According to CISPE, the conditions imposed by Microsoft prevented European cloud providers from competing fairly and limited the choices available to European customers. In particular, CISPE denounced the technical and pricing barriers that favored the use of Microsoft Azure at the expense of other providers. For example, the requirement to use Windows 11 in multi-session mode only on Azure and higher infrastructure costs for deployments on competing clouds were among the major concerns.
The complaint followed unsuccessful attempts to reform Microsoft's licensing policies, even after announced relaxations in the summer of 2022. Consequently, CISPE deemed it necessary to bring the matter before the European Commission to protect the European cloud ecosystem and ensure healthy and fair competition.
An Agreement Found between Microsoft and CISPE
After several months of negotiations, Microsoft and CISPE finally reached an agreement in 2024. Although criticized by some market players like Google and Amazon, the agreement was hailed as a major victory for European cloud providers. Microsoft agreed to several significant concessions to address CISPE's concerns.
Among the commitments made by Microsoft are the development and provision of an improved version of Azure Stack HCI specifically for European cloud providers. This version will include features such as a multi-session virtual desktop infrastructure based on Windows 11, extended security updates, and pay-per-use SQL Server licenses. Additionally, Microsoft committed to compensating CISPE members for revenue losses related to licensing costs over the past two years.
The agreement also provides for the creation of a European Cloud Computing Observatory, tasked with continuously monitoring and evaluating developments in Azure Stack HCI and ensuring that Microsoft's practices remain compliant with the commitments made. CISPE has given Microsoft a nine-month deadline to implement these changes, after which the association reserves the right to refile a complaint if necessary.
Conclusion
The agreement between Microsoft and CISPE marks an important step in regulating licensing practices in the cloud computing sector in Europe. Although praised by the European cloud providers' association, this agreement has not satisfied all market players. Google and Amazon, in particular, continue to criticize Microsoft's practices and are considering additional actions to promote fairer competition. This episode underscores the complexity and importance of regulation in the tech sector, where cloud giants must balance innovation, competitiveness, and fairness to ensure a healthy and dynamic market.