Microsoft has achieved a breakthrough with CISPE, the European cloud organization. After years of negotiations, an agreement has been reached on better licensing terms for European cloud providers. The agreement aims to strengthen competition and support European digital sovereignty.
The agreement between Microsoft and CISPE (Cloud Infrastructure Services Providers in Europe) gives qualified CISPE members access to a pay-as-you-go licensing model through the CSP-Hoster (CSP-H) program. This program should provide pricing terms comparable to those of Microsoft’s own Azure cloud platform.
CISPE members will have access to competitive prices for Windows Server and SQL Server through pay-as-you-go licenses. This is in addition to the Flexible Virtualization Benefit that was already available to CSP-H partners.
Breakthrough after long-running conflict
The agreement resolves a long-standing conflict. CISPE represents dozens of independent European cloud providers. The organization had previously complained about Microsoft’s anti-competitive practices in licensing software on non-Azure cloud infrastructure.
Additionally, Microsoft introduced Microsoft 365 Local, which enables customers to run their systems on local cloud infrastructure. This solution supports digital sovereignty for European customers. CISPE members can host Microsoft workloads without sharing customer data with Microsoft, which was a key concern.
Program remains exclusive to European players
The program remains deliberately closed to hyperscale cloud providers that Microsoft has designated as “Listed Providers.” This exclusion is intended to support competition and innovation in the European digital ecosystem by specifically strengthening European cloud providers.
According to Francisco Mingorance, Secretary General of CISPE, the agreement marks “a significant breakthrough in our long-standing efforts to ensure a level playing field.” For enterprise customers, this program means more choice between cloud solutions that meet sovereignty, compliance, and economic needs.
Criticism remains
Not everyone is enthusiastic about this agreement. Ryan Triplette, Executive Director of the Coalition for Fair Software Licensing, calls it “more smoke and mirrors from Microsoft.” He argues that Microsoft is trying to buy time with weak concessions to avoid regulatory oversight.
The criticism suggests that Microsoft will continue to lock in customers worldwide with restrictive licensing practices in the meantime. Microsoft will evaluate the program’s effectiveness over the next year, with potential expansion thereafter.
The agreement only covers current CISPE members and European cloud providers that join the organization in the coming months. This limitation ensures that the program remains focused on its original objectives.