CNBC March 8, 2024
Key Points
– CISPE, a trade body for infrastructure as a service cloud firms in Europe, issued a complaint Friday alleging that Microsoft’s licensing terms for running its software products on alternative clouds are destroying profit margins for rival cloud providers.
– The allegations stem from tweaks Microsoft made to its licensing terms in 2019, which required firms to buy a Software Assurance license and “mobility rights” if they wanted to deploy Microsoft software on other cloud services.
– In its complaint Friday, CISPE showed an example where, between 2018 and 2023, one cloud firm saw revenues from selling Microsoft products climb over 300%, but profit margins plunged from a positive mid-twenties percentage to double-digit negative.
Microsoft was accused Friday...
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