The Register: European Cloud Competition Observatory created to keep an eye on software licensing

Source URL: https://www.theregister.com/2024/11/20/european_cloud_competition_observatory/
Source: The Register
Title: European Cloud Competition Observatory created to keep an eye on software licensing

Feedly Summary: Initiative follows Microsoft settlement with CISPE consortium
Exclusive The Cloud Infrastructure Services Providers in Europe (CISPE) consortium has launched the European Cloud Competition Observatory (ECCO) to keep an eye on software licensing practices in the sector.…

AI Summary and Description: Yes

Summary: The establishment of the European Cloud Competition Observatory (ECCO) by the Cloud Infrastructure Services Providers in Europe (CISPE) highlights ongoing efforts to monitor and address unfair software licensing practices within the cloud sector. This initiative is significant for professionals in cloud computing and compliance, particularly in relation to the governance of software use across different cloud platforms, and showcases how organizations are advocating for fair market conditions.

Detailed Description:
The launch of the European Cloud Competition Observatory (ECCO) is a key development in the European cloud landscape, driven by the needs for transparency and fairness in software licensing practices. The initiative arises from a recent settlement involving Microsoft, which has engaged with CISPE to improve compliance and software delivery practices.

Key Points:
– **Formation of ECCO**: Created by the CISPE consortium to observe and report on software licensing in the European cloud sector, ensuring adherence to fair practices.
– **Background Settlement**: The initiative stemmed from a complaint against Microsoft. The tech giant is obliged to enhance its Azure Stack HCI product offering for European cloud providers as part of the agreement, with added financial implications estimated between $10 million to $30 million.
– **Monitoring Software Giants**: While initially focused on Microsoft, ECCO plans to monitor other major players like Broadcom and VMware, addressing complaints regarding restrictive practices that limit customer choices.
– **Governance and Oversight**: The governance of ECCO is independently managed by the CISPE secretariat, with organizations like Cigref and Beltug involved as observers, representing user interests.
– **Objectives of ECCO**: The main goal is to report on unfair licensing and to generate public awareness of these issues, fostering an environment where companies feel pressure to rectify discriminatory practices.
– **Microsoft’s Involvement**: Microsoft will participate in ECCO, but rival AWS will not benefit from the settlement, indicating competitive tensions within the cloud infrastructure market.

This development underlines a growing emphasis on compliance and governance in cloud computing, affecting not just the vendors but also the end-users who are impacted by licensing terms. Security and compliance professionals should closely follow ECCO’s findings and reports, as these may influence future regulations and practices across the cloud industry.