CISPE Launches the European Cloud Competition Observatory

Here’s the translation into American English:

The organization CISPE (Cloud Infrastructure Services Providers in Europe) has announced the establishment of the European Cloud Competition Observatory (ECCO), an independent entity designed to monitor software licensing practices in the European cloud sector. This body arises as part of the agreement reached between Microsoft and the European Commission in July 2024 to address concerns over unfair competition.

Although managed by CISPE, ECCO operates under an independent governance structure and includes participation from European customer organizations such as Cigref in France and Beltug in Belgium, which will act as observers. These organizations will ensure that the perspectives of end users are considered in the observatory’s reports. Additionally, ECCO will collaborate with technical experts to provide specialized analyses.

The primary goal of ECCO is to assess Microsoft’s progress in fulfilling the commitments made in the July agreement. These commitments include changes to software licensing practices that have faced criticism for restricting competitiveness in the market. In this regard, CISPE members are already conducting technical trials, and a summit is scheduled for December in Redmond, United States, to discuss progress. The observatory will publish its first report following this meeting, with updates planned for February and April 2025, before the final rollout of the solutions committed by Microsoft.

In addition to Microsoft, ECCO will expand its oversight to other large software companies, such as Broadcom/VMware, which have been noted for restricting options for European cloud customers. All reports from the observatory will be publicly accessible through the CISPE website.

Henri d’Agrain, General Delegate of Cigref, emphasized that ECCO represents an important step towards a fairer software licensing environment: “This observatory strengthens our commitment to equity and amplifies the voices of European customers.” Danielle Jacobs, CEO of Beltug, underscored that unfair licensing practices not only limit options but also increase costs for end users. “ECCO’s work is crucial to ensuring a more equitable environment in the cloud,” she stated.

Francisco Mingorance, Secretary General of CISPE, praised the role of Vice President Margrethe Vestager in the creation of the observatory: “ECCO will be a key watchdog against any unfair practices that seek to distort the European cloud market, with Broadcom currently under our scrutiny.”

With this launch, CISPE strengthens its commitment to a competitive and transparent market in cloud infrastructure, benefiting both providers and customers in Europe.

Source: CISPE

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