Source URL: https://www.theregister.com/2025/01/21/microsoft_joins_cispe/
Source: The Register
Title: Microsoft joins CISPE, the Euro cloud crew that tried to curb its licensing
Feedly Summary: From fighters to friends in six months, despite AWS voting against it
Exclusive Microsoft is 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. However, not all in the group are happy with the enrollment.…
AI Summary and Description: Yes
Summary: Microsoft has recently joined CISPE, the Cloud Infrastructure Services Providers of Europe, amid ongoing controversies related to its software licensing practices. This development raises concerns among existing members about Microsoft’s influence within the group and implications for cloud competition and regulatory compliance in the EU.
Detailed Description: Microsoft’s entry into CISPE marks a significant event in the European cloud landscape, directly involving compliance and regulatory discussions amidst competition among major cloud providers. Key points include:
– **CISPE Membership**: Microsoft is now part of CISPE, which aims to promote data protection and control for European cloud users. This aligns with the ongoing EU Data Act compliance initiatives.
– **Contentious Background**: Prior to joining, Microsoft faced criticisms over its licensing approach from other cloud providers, particularly regarding how it charges significantly higher fees for running its software on non-Azure platforms.
– **Settlement Negotiations**: Microsoft reportedly reached a confidential settlement with CISPE, potentially involving a cash payment of around €30 million and changes to its cloud infrastructure offerings.
– **Divergence in Opinions**: Not all CISPE members are in agreement with Microsoft’s membership—AWS actively opposed it, fearing that Microsoft’s presence could skew the balance of influence within the organization.
– **Economic Impact**: Microsoft’s cloud revenue generated substantial profits, emphasizing the competitive pressure on smaller cloud providers in the CISPE network.
– **Broader Implications**: The reaction to Microsoft’s inclusion in CISPE underscores concerns about vendor lock-in and market domination, particularly considering the overwhelming market share held by Microsoft, AWS, and Google.
– **Future of CISPE**: While some members worry about the potential bias towards Microsoft, others see value in the partnership as a means to enhance collaborative efforts in coping with regulatory challenges.
In summary, this development is crucial for security and compliance professionals, as it indicates a shift in the landscape of European cloud governance, with implications for data protection strategies, competitive pricing pressures, and the regulatory environment surrounding cloud services.