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Microsoft faces scrutiny over delayed cloud licensing reforms amid European pressure

Microsoft’s recent pricing adjustments have sparked controversy, with CISPE arguing that the changes undermine key terms of their settlement. The cost of Windows Server under SPLA has increased, while Azure’s pricing remains unchanged. CISPE claims this disparity contradicts Microsoft’s commitment to fair licensing options beyond its own cloud platform.

Defending its pricing strategy, Microsoft asserts that standalone applications and cloud-based services provide different value. The company insists Azure’s pricing model still allows CISPE members to compete. However, European cloud providers see these rising costs as yet another tactic to push customers toward Microsoft’s ecosystem.

Beyond pricing disputes, ECCO has raised concerns over Microsoft’s delayed progress in developing multi-tenant hybrid cloud solutions. CISPE had outlined specific technical requirements, yet Microsoft has struggled to meet them, citing an overloaded development pipeline. This slow pace has fueled speculation that the company is prioritizing its own product expansion over honoring its settlement commitments.

CISPE members believe Microsoft’s proposed Azure Local solution could worsen the situation by forcing European cloud providers to rely on Azure infrastructure. The trade group is demanding that Microsoft confirm whether Azure Local aligns with the original agreement. If it does not, CISPE insists that Microsoft work with them to develop fair alternatives.

With just nine months left to meet the settlement’s requirements, Microsoft risks reigniting legal action if it fails to deliver meaningful progress. Although the company maintains its commitment to working with CISPE, growing frustration among European cloud providers suggests their patience is wearing thin. The outcome of this ongoing dispute will likely determine whether Microsoft faces further regulatory scrutiny in Europe.

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