CISPE Warns Microsoft: The Account Is Missing

As part of its commitments to CISPE, did Microsoft misstep by opting for Azure Local?

The commitments in question date back to July 2024. In exchange, the European CSP representative association had withdrawn a complaint filed with the EU at the end of 2022. Through this channel, it had denounced the technical and pricing barriers that the American group would have posed to using its software on competing clouds.

The observatory established to monitor the implementation of these promises recently published an initial interim report. The verdict: on several points, the numbers don’t add up. In particular regarding the transformation of Azure Stack HCI (renamed Azure Local) into a “for Hosts” edition tailored to European CSPs.

Unreasonable Demands… or Misunderstood?

A CISPE delegation invited in early December 2024 to Redmond was able to discuss the expected features. According to Microsoft, the desires communicated on this occasion go beyond the elements defined in the July agreement*. The publisher now says that “we can work together on additional capabilities,” but that “it must operate as a partnership involving co-investment and reasonable expectations.”

From the CISPE side, it is claimed that during the Redmond meeting, Microsoft’s teams acknowledged that “the ball [was] in their court.” In other words, it was up to them to explain if, how, and when the requested features could be delivered. Yet, to date, the association has not received further feedback. The current exchanges suggest that Microsoft “is still processing and evaluating” its requests. It assumes that “the product development teams may not fully understand the legal requirements.” And it invites, in this context, to consider “alternative approaches” to meet the imposed deadline (nine months). Including “commercial solutions … equivalent, available through existing programs.”

A Comprehensive Pilot, but Vague

Microsoft did establish a testing program deemed “exhaustive,” but the participation of CISPE members (a little over thirty concerned) has not been uniform. Only three have “completely evaluated” the software. And two have “actively engaged” in a pilot. For many, access proved problematic, set against a backdrop of unclear obligations.

CISPE has other grievances. Among them:

• Microsoft’s tendency to push the existing product to its members as the “default” solution
• Potential requirement for CSPs to obtain an Azure license for each client
• Sovereignty concerns, with the Azure portal currently serving as the only interface

CISPE Worries About Fair Pricing with Azure

There is another point that worries CISPE: the evolution of the SPLA (Service Provider Licensing Agreement). Microsoft is supposed to ensure these members access to this program for at least five years and “without price discrimination.” That does not seem to be heading in that direction. Recently, Windows Server prices have gone up… without a corresponding rise in the hourly rate on Azure.

Microsoft contends that its cloud services and the “offline” software offer different value propositions. The hourly price of Windows Server on Azure is much higher than on SPLA, he adds.

* In the July 2024 agreement, CISPE specifically requests multi-tenant, free extended security updates, multisession VDI, and pay-as-you-go for SQL Server.