Microsoft makes changes in Cloud licensing from Oct to avoid EU issues

Microsoft said its new Cloud licensing deals will be available from October 1 — making it easier for cloud service providers to compete. The change in Cloud licensing was triggered by complaints about the U.S. software company to EU antitrust regulators.
Microsoft storesMicrosoft President Brad Smith had announced the changes in May but did not say when they would be effective.

Microsoft faced fine of 1.6 billion euros ($1.6 billion) by the European Commission in the previous decade for various infringements. Microsoft, which generated $183 billion revenue in last 12 months, found itself in the EU’s crosshairs following complaints by cloud service providers in Germany, Italy, Denmark and France.

“On October 1, 2022, Microsoft will implement significant upgrades to our outsourcing and hosting terms that will benefit customers worldwide,” the company said in a blogpost.

The revised licensing deals mean customers can use their licenses on any European cloud provider delivering services to their own data centers.

Rivals Amazon.com, Alphabet’s Google, Alibaba and Microsoft’s own cloud services will be excluded from the deals.

Customers also will be allowed to buy licenses just for the virtual environment without the need to buy the physical hardware.

The EU competition watchdog has yet to comment on Microsoft’s proposals.