Microsoft has agreed to suspend software audits for members of the CISPE trade group for two years as part of a recent settlement. The agreement aims to address antitrust complaints from several European cloud providers. It also involves a payment to the trade group and some technical concessions.
Sources familiar with the matter say the moratorium on audits is a key element of the deal. It provides relief to CISPE members from compliance scrutiny by Microsoft. One source noted that the suspension shows Microsoft’s significant market power.
It essentially forces EU cloud providers into a choice with limited options. Insiders also said the temporary halt to audits adds to the settlement’s appeal. It helps avoid disruptions from Microsoft’s software licensing compliance checks.
The settlement is designed to alleviate concerns about price discrepancies. These occur when using Microsoft’s software on its own Azure platform versus other European cloud infrastructures.
Microsoft pauses CISPE software audits
As part of the deal, Microsoft has promised to offer a version of Azure Stack HCI tailored for hosters. However, the agreement excludes AWS and Google, which Microsoft categorizes as listed providers. Customers of these companies will continue to incur higher costs for Microsoft software licenses on their platforms.
Both CISPE and Microsoft declined to provide comments when approached. However, industry analysts suggest that this deal gives CISPE a significant advantage. This is true even as it means Microsoft will overlook audits for the duration of the moratorium.
In the broader market context, Microsoft’s main rival in the EU public cloud marketplace is AWS. Both companies, along with Google, hold a substantial portion of customer spending in the sector. The recent developments reflect ongoing competitive dynamics and regulatory scrutiny within the cloud computing industry.
While the specifics of the concessions and payments remain undisclosed, the agreement signals a strategic move by Microsoft. It aims to resolve antitrust issues and potentially improve its standing with European cloud providers.
