In March 2023, the company agreed to change its cloud licensing practices to avoid an EU antitrust probe, and in July 2024, Microsoft and CISPE reached a settlement that required the company to pay €20 million ($21.7 million) and develop a new product, Azure Local.
Azure Local would have allowed members to run Microsoft software on their platforms at prices equal to Microsoft’s. It was to include multitenancy support for customer workloads, pay-as-you-go licensing for SQL Server, unlimited virtualization and multi-session virtual desktop infrastructure (VDI) for Windows, and free security updates.
But then in May of this year, the European Cloud Collaboration Observatory (ECCO), which is providing independent oversight of the deal, found that “both Microsoft and CISPE have now agreed that Azure Local will not deliver the full set of features outlined in the agreement.” ECCO also described Microsoft’s offering as “disappointing,” and gave the company an Amber rating, indicating that concerns exist and corrective actions have been proposed.
