Managed service providers (MSPs) in Europe are closely watching how a settlement between Microsoft and the Cloud Infrastructure Services Providers in Europe (CISPE) coalition will impact pricing and availability of cloud services.
Under the agreement, cloud service providers (CSPs) that are members of CISPE will now be able to resell Microsoft software to their customers on a pay-as-you-go basis via Microsoft’s CSP-Hoster (CSP-H) program, with no minimum workload requirements. This will enable CSPs in Europe to create pricing conditions that are more competitive with services such as Windows Server or SQL Server running on the Microsoft Azure cloud platform.
What’s critical for European customers
Alongside pricing improvements, CSPs also gain access to Microsoft 365 Local, giving organizations the ability to deploy productivity tools in sovereign cloud environments. For European customers seeking to eliminate dependence on foreign infrastructure, that’s a major win for data sovereignty.
Another shift: CSPs no longer have to share customer details with Microsoft, reversing a previous requirement. The new terms apply to current CISPE members and any CSPs that join within the next few months. To further promote fairness, Microsoft will exclude large hyperscalers from this program. Those providers operate under separate licensing agreements, helping ensure that regional CSPs can maintain competitive footing.
Microsoft has also committed to reviewing the program’s impact within its first year, with potential for broader access beyond CISPE.
What this means for MSPs
MSPs that operate in Europe will now be able to consider additional options with CSP partnerships. Of course, some MSPs also manage their own data center infrastructure, so if the deal worked out between CISPE and Microsoft, it might prove especially tempting.
It’s unclear how many organizations are looking to other CSPs to run Microsoft software, but having options is especially crucial in Europe, where data center capacity is limited and the number of organizations that want to make sure that their data never leaves a specific country is increasing. Many CSPs around the world are likely to assess the benefits of engaging in collective bargaining with independent software vendors (ISVs), especially those, like Microsoft, that sell software directly to end users using hyperscaler infrastructure.
Regardless of the outcome, regulators around the world are now paying closer attention to how software is deployed and sold in the age of the cloud. As such, the willingness of vendors to negotiate with the partners that make up their extended distribution networks in the cloud era might be finally changing for the better.
Photo: PreciousJ / Shutterstock
This post originally appeared on Smarter MSP.