European Cloud Principles one year on: Working together to advance digital progress in Europe

Any effort to advance the Microsoft cloud in Europe must happen on Europe’s terms, and one year ago, we shared a new set of principles to make sure we continue to make progress in this regard. As Microsoft Vice Chair and President Brad Smith noted when he announced these European Cloud Principles last year in Brussels, the principles have been established to guide all aspects of our cloud business, enhance transparency for the public and help Microsoft better support Europe’s technology needs.?

In announcing these new principles, Microsoft committed to the following:?

• We will ensure our public cloud meets Europe’s needs and serves Europe’s values?
• We will ensure our cloud provides a platform for the success of European software developers?
• We will partner with and support European cloud solution providers?
• We will ensure our cloud offerings meet European governments’ sovereign needs, in partnership with local trusted technology providers?
• We recognize that European governments are regulating technology and we will adapt to and support these efforts??

These principles were supported by a specific and focused initiative to support European Cloud Providers to host a wider variety of Microsoft products more easily on their own cloud infrastructure, making them more competitive with more options to serve their customers.??

We are proud that European companies including Siemens, Mercedes-Benz, Bayer, and DHL Supply Chain have trusted Microsoft to support them in their own innovation journeys – using our AI, sustainability, and cloud offerings to digitally transform their organizations, while improving service and experience for their customers.?

With an exciting new wave of AI and cloud technology now offering even more opportunities for all Europeans, including cloud providers, partners, and customers, I wanted to share an update on the work that has taken place in the last year based on our European Cloud Principles – a year of listening to feedback and of taking action.??

Meeting Europe’s needs and serving Europe’s values?

We continue to invest in making sure that our trusted cloud supports Europe. Our data center footprint in Europe continues to grow. We have announced that we are either operating or planning 17 regions and 49 availability zones. Most recently, we announced the opening of our first cloud region in Central and Eastern Europe, located in Poland.?

These data centers are a cornerstone of ensuring customer data is protected and meeting the requirements of European laws. Microsoft has committed to store and process customer data within the EU Data Boundary and built on our current residency solutions to offer enhanced control and increased transparency. Earlier this year, we began to offer customers the ability to store and process their data within the EU Data Boundary for Microsoft 365, Azure, Power Platform, and Dynamics 365 services. This means expanded local storage and processing commitments, greatly reducing data flows out of Europe and building on our industry-leading data residency solutions. We plan to expand the EU Data Boundary to include the storage and processing of additional categories of personal data, including data provided when receiving technical support.?

We believe it’s essential to ensure Europeans are equipped with the right skills and filling the jobs that technology can unlock, including in the critical area of cybersecurity. Microsoft has pledged to support the recently launched EU Cybersecurity Skills Academy by committing to train 100,000 people in Europe with cybersecurity skills over two years. We are also supporting efforts to open opportunities for people from underserved and refugee communities with additional grants, a year after expanding our cybersecurity skills initiative into Europe.?

Provide a platform for the success of European software developers?

We continue to support European software developers. As we noted last year, our tools and technology are widely used by European developers including GitHub and Visual Studio. The opportunity for developers is increasing as AI is helping to change the landscape of software development. A recent GitHub survey showed between 60%-75% of users reported they feel more fulfilled with their job, feel less frustrated when coding, and are able to focus on more satisfying work when using GitHub Copilot.?

And the speed at which Europe can put AI to work matters, especially regarding sustaining a competitive edge globally. Its deep talent base means it is well placed to move quickly, having over six million professional developers – more than in the United States. ?

Our annual developer conference, Microsoft Build will be held May 23-25. European developers will have an opportunity to attend virtually, at no cost, to learn more about the latest trends in cloud, AI, machine learning, quantum computing, and more.??

Partner with and support European cloud providers?

Last year, a set of European Cloud Providers filed complaints with the European Commission, raising concerns with our licensing practices. In follow-on discussions with these companies and others, it was clear there was more needed to support European cloud providers and offer more opportunities for them to better serve customers. Our European Cloud Provider Initiative has been designed to address their concerns specifically in the following areas:?

Licensing evolution??

Our European Cloud Provider Initiative has been anchored by updates to our global licensing programs. A series of changes were introduced in October 2022 including:?

• New flexible virtualization benefit for customers to greatly expand their options allowing them to deploy their software subscriptions on any European cloud provider’s infrastructure.????
• New licensing options for Windows Server?
• New virtualization benefits for Windows 11 with Microsoft 365 licenses?
• An updated cloud solution provider program where any solution can be hosted by European cloud solution providers. To date, more than 75 European and UK based CSPs have signed up.??

Building relationships??

For Microsoft, it was of the utmost importance to re-establish relationships with European Cloud Providers in order to help the community achieve its goals and create more opportunities to have effective two-way communication. In the past year, we have established a new support team dedicated to European cloud providers. The team’s mission is to support their business objectives by leveraging Microsoft’s technology and resources, and delivered through both depth engagements with the largest cloud providers in Europe and new digital engagements including monthly events and a new website to support the broader European ecosystem at scale. In addition, we have engaged in a series of discussions through the European Cloud Alliance and local trade associations to ensure a robust and effective feedback loop. We plan to take additional steps in this regard over the next few months.??

Meeting European governments’ sovereign needs with local trusted technology providers?

We recognize that many European governments want more customized cloud solutions for their sovereign technology scenarios. Last July, we announced Microsoft Cloud for Sovereignty for government customers looking to harness the power of the public cloud while meeting specific compliance, security and policy requirements. Since the announcement, we have delivered two private-preview releases. We have worked with trusted partners in local markets including Leonardo in Italy, Proximus in Belgium and Telefonica in Spain and continue to work with governments and other trusted partners across Europe and around the world. Earlier this week, we shared a blog post offering learnings around the key challenges that governments face in meeting their digital transformation objectives while ensuring local sovereignty requirements are met.?

Supporting European regulation?

We are in a new era for technology, and this means a new area of tech regulation. One that we as a company believe is important to adapt to, and to engage in discussion while regulatory proposals are in development. Some highlights of our support and engagement on key EU regulatory initiatives include:?

• Digital Operational Resilience Act (DORA): Microsoft has engaged from the beginning of the legislative process through adoption to ensure financial services industry customers in Europe can continue to rely on our services and new resiliency measures. We continue to engage with both regulators and customers to clarify and ensure corresponding regulatory compliance.?
• Digital Services Act (DSA): Microsoft was supportive of many of the aims of new European rules online content, and pursuant to the adopted DSA, publishes information semi-annually on its average monthly active users in the European Union, calculated over a six-month period. Most recently, LinkedIn and Bing were included in the list of the first 19 companies designated by the commission as subject to the new requirements.?
• Digital Markets Act (DMA): Microsoft has been publicly supportive of EC efforts to develop new rules for large digital platforms that operate as “gatekeepers.” Following adoption, Microsoft has been in regular dialogue with EC enforcement officials on the implementation of the new requirements and which entities and services may ultimately fall in scope.??
• Corporate Sustainability Reporting Directive (CSRD): Following its adoption, Microsoft is preparing to ensure Microsoft and customer compliance as well as product readiness. Microsoft’s has been and remains supportive of EU efforts and leadership in this space.?
• EU E-Evidence Regulation: The long-awaited proposal has been supported by Microsoft from the outset and has finally reached EU political agreement, importantly, helping to pave the way for a CLOUD Act agreement between the EU and the United States.??
• Network Information Security Directive 2 (NIS2): Microsoft has supported many of the baseline requirements on critical infrastructure sectors and is now focused on engagement across Europe with both regulators and CI customers to ensure harmonized implementation.??

What’s next?

A year ago, we promised to move rapidly so that we could adjust and learn quickly. We are still learning. And listening. And working to improve. Our work is far from being completed. We will continue to provide input on key legislative initiatives and adapt to new regulations. We will continue to advance new technologies that meet Europe’s needs and are aligned with Europe’s values. We will continue to support customers and partners in Europe to leverage and benefit from new technology solutions. We will continue to prioritize transparency and communication, while working together to help Europe advance its digital ambitions and defend its global competitiveness.?