The Billion Euro Unfair Software Licence Tax on EU Customers - CISPE - The Voice of Cloud Infrastructure Service Providers in Europe
cispe.cloud/the-billion-euro-unfair-software-licence-tax-on-eu-customers/
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reveals more than 20% surcharges on the price of software creating excess costs of one billion Euros
just to be able to run the software they own in the cloud infrastructure of their choice.
price discrimination
cost to license Microsoft’s SQL Server in an independent cloud
with the cost of the same software running on Microsoft Azure cloud
He found the additional charges levied on those choosing a non-Microsoft cloud sucked an additional €1,010,394,489 out of the European economy in 2022
This equates to a 28% premium, or tax, on the software licence,
It showed how legacy software companies including Microsoft, Oracle and SAP could use tying, bundling and discriminatory pricing to direct customers to their own cloud infrastructure.
tilted the market in their favour
There are no technical reasons why prices are higher for software licensed to run on independent cloud infrastructure
but rather that price differentials are engineered to raise rival’s costs.
Azure performs less well than competitive clouds – yet customers are still pushed towards forgoing those competing services because of the price implications of selecting them.
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