A European cloud group has unveiled its plans to monitor Microsoft's adherence to a controversial deal designed to boost competition in the market — and said it will keep a close eye on Broadcom and its subsidiary VMware, too.
The Cloud Infrastructure Service Providers in Europe (CISPE) unveiled the European Cloud Competition Observatory (ECCO) to monitor software licensing and cloud competition in Europe, set up with assistance from EU competition commissioner Margrethe Vestager.
ECCO will oversee Microsoft's commitment to a settlement agreed earlier this year with CISPE, after the cloud organization accused the software giant of anti-competitive licensing that was costing the European market billions, initially filing a formal complaint with the EU.
Beyond the Microsoft agreement, ECCO will also monitor cloud licensing practices more broadly in the region, keep an eye on other software giants, and monitor practices that restrict cloud choices for European customers. Such firms include Broadcom and VMware, CISPE said.
Microsoft watchdog
To start, ECCO will monitor Microsoft’s progress on software commitments made in the settlement, which focuses on making Microsoft’s structure more competitive in Europe.
CISPE members will conduct trials and hold a technical summit in the US before filing a progress report. Subsequent progress reports will follow in February and April, ahead of Microsoft’s final software release under the deal.
"We are confident that ECCO will be effective in ensuring the spotlight remains on the unfair software licensing practices that restrict customers' choice of cloud," a CISPE spokesperson told ITPro. "With customer associations playing an Observatory role, we can ensure the whole sector maintains scrutiny over this issue,"
ECCO is managed by CISPE but operates under an independent governance structure, with European cloud organizations set to act as observers. That includes French firm Cigref and Belgian firm Beltug, which will seek to ensure customer perspectives are reflected in ECCO’s reports. Microsoft will also be part of ECCO.
"ECCO aligns with our commitment to fair software licensing and amplifies the voice of European customers," said Henri d’Agrain, General Delegate of Cigref.
"Unfair licensing practices limit choice and increase costs for cloud customers," said Danielle Jacobs, CEO at Beltug. "ECCO’s work is essential to help deliver a fair cloud software licensing environment in Europe."
CISPE’s general secretary, Francisco Mingorance, added that ECCO would serve as a "watchdog" over software vendors using unfair practices to disrupt the European cloud market.
CISPE’s competition mission
CISPE has kept a close eye on competition in the European market, having initially entered into talks with Microsoft in early 2024 following a complaint the trade body filed back in 2022.
After some negotiation, CISPE and Microsoft agreed to a settlement that involved a $22 million payment, the creation of an oversight body, and licensing changes. AWS and Google hit out at the settlement, though, with one Google Cloud exec calling it a “pay off".
Google even tried to scupper the settlement, reportedly offering European cloud firms a $512 million combined package of cash and software licenses to discourage CISPE from settling.
CISPE has also been vocal about Broadcom following its acquisition of VMware. The cloud body called for an investigation into Broadcom back in March following concerns over changes to VMware licensing fees.
