Microsoft's entry into CISPE, the Cloud Infrastructure Services Providers of Europe, has sparked mixed reactions. While CISPE officials welcome Microsoft's participation, some members express concern over the influence of the tech giant on the trade association. The move follows a settlement between CISPE and Microsoft over alleged anti-competitive software practices.
Microsoft is set to become the latest member of CISPE , months after negotiating a settlement with the trade association of European cloud providers over alleged anti-competitive software practices. While CISPE officials welcomed Microsoft into the fold, not everyone within the group is pleased with the decision.
A senior spokesperson for the Cloud Infrastructure Services Providers of Europe confirmed that Microsoft would be the 39th associate member, emphasizing that the group represents the region's entire cloud industry, including hyperscalers. The spokesperson highlighted areas of alignment, such as legislation on a Cloud Switching Framework to facilitate compliance with the EU's Data Act. Despite the positive message, the spokesperson acknowledged that the decision wasn't unanimous. A Microsoft spokesperson expressed gratitude for CISPE's acceptance as a non-voting adherent member and pledged to focus on building a constructive partnership that supports European cloud providers. The limited influence Microsoft will have within CISPE likely alleviates concerns among smaller members whose businesses are dwarfed by Microsoft's scale. For context, Microsoft's Intelligent Cloud division generated $105 billion in revenue during its fiscal year 2024.Prior to joining CISPE, Microsoft faced criticism from European cloud providers over its licensing practices, with allegations of charging up to five times more for running certain software on non-Azure clouds. The trade organization had filed a complaint with the European Commission, resulting in a settlement that included a $31 million payment from Microsoft, enhancements to Azure Local (formerly Azure HCI Stack), and a two-year suspension of Microsoft licensing audits. A technical oversight board was established by CISPE to monitor any technical requirements, with the first progress report expected at the end of this month. While Microsoft had invited CISPE members to Redmond last month, the event appeared more focused on Microsoft's agenda rather than addressing the concerns of smaller members.The central purpose of CISPE is to promote data protection, ownership, and control for cloud users in Europe, a market dominated by AWS, Microsoft, and Google, which collectively hold over 70 percent market share. Some sources question CISPE's value proposition for European cloud providers, viewing it as a tool for Microsoft's influence. Another source expressed anger and frustration over the decision, while others wondered about the implications for the settlement reached between CISPE and Microsoft. The CISPE spokesperson insisted that Microsoft's membership strengthens their position and allows for a more focused approach to delivering on the settlement's commitments.
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