Microsoft and CISPE Strike a Deal: What IT Leaders Need to Know
Introduction
A recent agreement between Microsoft and the Cloud Infrastructure Services Providers in Europe (CISPE) marks a significant shift for European cloud providers, allowing them to offer Microsoft software on a flexible, pay-as-you-go basis. This change also aims to enhance customer privacy for European organizations when utilizing Microsoft services.
Key Details
- Who: Microsoft and CISPE
- What: CISPE can now provide Microsoft software under a pay-as-you-go model, enabling competitive pricing for services such as Windows Server and SQL Server.
- When: The agreement comes more than two years after CISPE filed a complaint with the European Commission regarding Microsoft’s licensing practices.
- Where: The deal is applicable across European cloud providers.
- Why: The agreement aims to ensure fairer pricing and licensing options, while also protecting user data through a customer privacy clause.
- How: CISPE members can incorporate Microsoft software into their existing cloud offerings without necessarily sharing customer information with Microsoft.
Why It Matters
- Vendor Flexibility: While the deal provides a pathway for better licensing models, it does not remove the tie between Entra ID (formerly Azure Active Directory) and Microsoft 365. This restricts user choice for identity management solutions.
- Enhanced Options: With CISPE’s new arrangements, organizations can expect improved pricing for cloud-hosted Microsoft services, which can influence decisions on multi-cloud strategies.
- Privacy Considerations: The agreement includes a customer privacy clause, an essential factor for organizations concerned about data sovereignty in the cloud.
Takeaway
IT leaders should consider how this agreement impacts their cloud strategies, particularly regarding licensing and identity management. As cloud options expand, organizations may need to reassess their existing agreements with Microsoft and explore opportunities for cost savings and improved service delivery.
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