License dispute: Microsoft runs out of time to reach agreement with CISPE

Microsoft only has a few weeks left to complete a multi-tenant version of Azure Local. This will enable European cloud providers to offer the US software company's applications and services on their infrastructures. The background to this is an agreement with the industry association Cloud Infrastructure Service Providers in Europe (CISPE) from July 2024, in which Microsoft undertook to expand Azure Local within nine months in a dispute over changes to the licensing conditions for the Azure cloud. In return, CISPE withdrew its competition complaint to the EU Commission.

Internal sources: Microsoft will break deadline

As the IT trade service The Register reports, citing internal sources, Microsoft will not be able to deliver a revised version of Azure Local by the deadline shortly after Easter. The company had underestimated the time and effort required for development. Furthermore, no progress has been made since a meeting with CISPE representatives last December. According to another statement, the transformation of Azure Local into a multi-tenant cloud was a difficult task.

Both parties had agreed on a multi-tenant cloud with CPU and RAM oversubscription and booking, shared memory and address overlap. It should also include virtual desktops based on Windows 11, free security updates and pay-as-you-go licensing for SQL servers. As an independent body, the European Cloud Observatory took over the monitoring and assessment of the development. According to information from The Register, observers had already come to the conclusion in February that Microsoft was behind schedule with the development. Microsoft and CISPE did not comment when asked by the iX editorial team.

Renewed competition complaint possible

Should Microsoft fail to meet the agreed requirements after the deadline, CISPE could resubmit the withdrawn competition complaint to the EU Commission. In the agreement, the association had at least announced that it would do so if Microsoft failed to deliver. What actually happens remains to be seen.

In its complaint, CISPE claimed that the software company was exploiting its dominant position, restricting choice and driving up costs for European cloud customers. Microsoft is deliberately creating hurdles so that its software does not function optimally on competing cloud platforms in Europe. The company is thus distorting digital competition in Europe.

Despite the disagreements, Microsoft joined the European industry association as a non-voting supporting member in January 2025. This means that the US company has no chance of co-determination within the alliance, as the board may only consist of representatives from European companies. This makes Microsoft the second non-European member of CISPE after AWS.

(sfe)