European Cloud Competition Observatory created to keep an eye on software licensing

Exclusive The Cloud Infrastructure Services Providers in Europe (CISPE) consortium has launched the European Cloud Competition Observatory (ECCO) to keep an eye on software licensing practices in the sector.

ECCO has come about as a result of CISPE's agreement with Microsoft in July to settle a competition complaint filed with the European Commission. Microsoft agreed to pay a relatively small sum to the trade group – we've seen figures ranging from $10 million to $30 million – and produce an enhanced version of its Azure Stack HCI product for European cloud providers that match the company's own cloud offerings.

While the intent of ECCO is to identify unfair software licensing practices in Europe, its initial task will be to ensure Microsoft makes good on its promises. According to CISPE, its members are trialing Microsoft's changes ahead of a technical summit planned for December in Redmond, Washington. A progress report is expected after this summit, with follow-ups planned for February and April.

ECCO also plans to take a look at other software giants, including Broadcom and VMware, whose practices have attracted complaints from users and, according to CISPE, "restrict cloud choices for European customers."

The settlement gave the Windows giant nine months to deliver software to remedy CISPE's concerns. If ECCO reports that the plans have not been implemented as intended, CISPE has the right to resubmit its complaint.

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A spokesperson for CISPE said: "We are cautiously optimistic that things are going in the right direction. There is still lots to do, but the engagement and confidence are high."

ECCO is run and managed by the CISPE secretariat and operates under an independent governance structure. Cigref, a group of French companies and public sector organizations, and Beltug, a Belgian association of CIOs and digital technology leaders, will act as observers for the customer community.

Henri d'Agrain, general delegate of Cigref, said: "ECCO aligns with our commitment to fair software licensing and amplifies the voice of European customers." Danielle Jacobs, CEO of Beltug, added: "Unfair licensing practices limit choice and increase costs for cloud customers. ECCO's work is essential to help deliver a fair cloud software licensing environment in Europe."

There are no plans for ECCO to raise complaints itself. Instead, the organization will monitor and report on potentially unfair software licensing practices. "It is our ambition to create publicity around all of ECCO's reports so that companies are incentivized to act to end these practices," the spokesperson explained.

Microsoft will be part of ECCO. AWS, a CISPE member, was excluded from negotiations over the settlement and would "neither benefit nor be bound by its terms." ®