EU Cloud Providers Secure Favorable Concessions from Microsoft on Pricing and Licensing
Brussels, Belgium – July 18, 2025 – A significant victory has been achieved by CISPE, the association representing European cloud infrastructure providers, following successful negotiations with Microsoft. The tech giant has agreed to make substantial concessions regarding its pricing and licensing structures for cloud services, a move that is expected to foster a more competitive and equitable landscape within the European cloud market.
The agreement, detailed in a recent report by The Register, comes after an extended period of dialogue and advocacy by CISPE, which has consistently raised concerns about what it perceived as unfair commercial practices by major hyperscale cloud providers. At the heart of CISPE’s concerns were Microsoft’s complex licensing models and pricing strategies, which they argued created barriers to entry and put smaller, European-based cloud providers at a significant disadvantage.
Key among the concessions secured by CISPE are adjustments to Microsoft’s enterprise agreements and the terms under which other cloud providers can utilize Microsoft’s software and services. While the specifics of the new agreements are still being fully elucidated, sources indicate that Microsoft will be introducing more flexible and transparent pricing options. This is expected to make it easier and more cost-effective for European cloud providers to integrate and offer Microsoft’s widely adopted cloud solutions to their own customer bases.
Historically, many European cloud providers have found themselves in a difficult position, needing to offer services that compete with Microsoft’s direct cloud offerings, while simultaneously being reliant on Microsoft’s software and licensing to do so. The complexity and cost associated with these licenses often proved prohibitive, limiting their ability to innovate and scale effectively.
The concessions are seen as a crucial step towards leveling the playing field, allowing European cloud infrastructure providers to better compete on the global stage and offering European businesses greater choice and flexibility in their cloud adoption strategies. By addressing some of the long-standing concerns around licensing terms and pricing, Microsoft’s agreement is anticipated to unlock new opportunities for collaboration and innovation within the European technology ecosystem.
CISPE has expressed its satisfaction with the outcome, highlighting the collaborative approach taken by both parties to reach a mutually beneficial resolution. The association emphasized its commitment to ensuring a robust and competitive digital economy in Europe, and this agreement is viewed as a significant stride in that direction. This development is likely to be closely watched by other technology providers and regulatory bodies across the continent as the digital market continues to evolve.
EU cloud gang wins concessions from Microsoft on pricing, licensing
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