Despite denying the initial claims, CISPE has made a deal with Microsoft, after all

Microsoft has made a clever move to avoid a possible antitrust investigation by the European Union. They signed an agreement worth $21.7 million with Cloud Infrastructure Service Providers in Europe (CISPE), a group of European cloud companies.

This consortium includes big names such as Amazon Web Services and several smaller cloud entities. In a somewhat surprising turn of events, CISPE previously filed a complaint against Microsoft, claiming that Microsoft was using unfair methods in its cloud business to suppress competition.

Microsoft’s response? A large monetary resolution and an assurance of working together. They have decided to give CISPE members the authority to use Microsoft software. Interestingly enough, CISPE recently denied the existence of such a deal.

This partnership will present an “improved edition of Azure Stack HCI” for European cloud providers. It assures a package of appealing elements like multi-session virtual desktop infrastructure reliant on Windows 11, free Extended Security Updates (ESU), and adaptable pay-as-you-go licensing for SQL Server.

According to reports, Brad Smith, Microsoft’s President, said they were happy to solve previous issues with CISPE and set a new direction that he thinks will bring more competition in Europe’s cloud computing market. However, there is one thing: Microsoft must start using this software collaboration within nine months. Otherwise, CISPE promised to re-initiate the lawsuit.

After working with CISPE and its European members for more than a year, I am pleased that we’ve not only resolved their concerns of the past, but also worked together to define a path forward that brings even more competition to the cloud computing market in Europe and beyond.

Brad Smith, Microsoft

This agreement may steer an official EU investigation away from Microsoft’s cloud department. It is interesting to note that Amazon Web Services, as a CISPE member, was not included in the settlement talks. AWS still takes a strong position and wants an end to what it sees as Microsoft’s unfair actions that impact various customers, providers, and regulators across the globe.

Will this agreement between Microsoft and CISPE prevent the European Commission from starting an investigation? We can only wait and see. However, one thing remains evident: if it does happen, a crucial deal like this might spark big alterations in the field of cloud computing within Europe.