Working collectively to advance digital progress in Europe

Any effort to advance the Microsoft cloud in Europe should occur on Europe’s phrases, and one yr in the past, we shared a brand new set of rules to ensure we proceed to make progress on this regard. As Microsoft Vice Chair and President Brad Smith famous when he introduced these European Cloud Rules final yr in Brussels, the rules have been established to information all facets of our cloud enterprise, improve transparency for the general public and assist Microsoft higher assist Europe’s expertise wants.

In saying these new rules, Microsoft dedicated to the next:

We’ll guarantee our public cloud meets Europe’s wants and serves Europe’s values
We’ll guarantee our cloud gives a platform for the success of European software program builders
We’ll accomplice with and assist European cloud answer suppliers
We’ll guarantee our cloud choices meet European governments’ sovereign wants, in partnership with native trusted expertise suppliers
We acknowledge that European governments are regulating expertise and we’ll adapt to and assist these efforts

These rules had been supported by a selected and targeted initiative to assist European Cloud Suppliers to host a greater diversity of Microsoft merchandise extra simply on their very own cloud infrastructure, making them extra aggressive with extra choices to serve their clients.

We’re proud that European firms together with Siemens, Mercedes-Benz, Bayer, and DHL Provide Chain have trusted Microsoft to assist them in their very own innovation journeys – utilizing our AI, sustainability, and cloud choices to digitally remodel their organizations, whereas bettering service and expertise for his or her clients.

With an thrilling new wave of AI and cloud expertise now providing much more alternatives for all Europeans, together with cloud suppliers, companions, and clients, I wished to share an replace on the work that has taken place within the final yr primarily based on our European Cloud Rules – a yr of listening to suggestions and of taking motion.

Assembly Europe’s wants and serving Europe’s values

We proceed to put money into ensuring that our trusted cloud helps Europe. Our information heart footprint in Europe continues to develop. We’ve got introduced that we’re both working or planning 17 areas and 49 availability zones. Most lately, we introduced the opening of our first cloud area in Central and Japanese Europe, positioned in Poland.

These information facilities are a cornerstone of making certain buyer information is protected and assembly the necessities of European legal guidelines. Microsoft has dedicated to retailer and course of buyer information inside the EU Knowledge Boundary and constructed on our present residency options to supply enhanced management and elevated transparency. Earlier this yr, we started to supply clients the flexibility to retailer and course of their information inside the EU Knowledge Boundary for Microsoft 365, Azure, Energy Platform, and Dynamics 365 providers. This implies expanded native storage and processing commitments, drastically decreasing information flows out of Europe and constructing on our industry-leading information residency options. We plan to develop the EU Knowledge Boundary to incorporate the storage and processing of extra classes of non-public information, together with information supplied when receiving technical assist.

We consider it’s important to make sure Europeans are geared up with the appropriate abilities and filling the roles that expertise can unlock, together with within the crucial space of cybersecurity. Microsoft has pledged to assist the lately launched EU Cybersecurity Abilities Academy by committing to coach 100,000 individuals in Europe with cybersecurity abilities over two years. We’re additionally supporting efforts to open alternatives for individuals from underserved and refugee communities with extra grants, a yr after increasing our cybersecurity abilities initiative into Europe.

Present a platform for the success of European software program builders

We proceed to assist European software program builders. As we famous final yr, our instruments and expertise are extensively utilized by European builders together with GitHub and Visible Studio. The chance for builders is growing as AI helps to vary the panorama of software program improvement. A latest GitHub survey confirmed between 60%-75% of customers reported they really feel extra fulfilled with their job, really feel much less annoyed when coding, and are capable of deal with extra satisfying work when utilizing GitHub Copilot.

And the pace at which Europe can put AI to work issues, particularly concerning sustaining a aggressive edge globally. Its deep expertise base means it’s effectively positioned to maneuver shortly, having over six million skilled builders – greater than in the US.

Our annual developer convention, Microsoft Construct might be held Might 23-25. European builders could have a chance to attend nearly, for free of charge, to study extra in regards to the newest traits in cloud, AI, machine studying, quantum computing, and extra.

Accomplice with and assist European cloud suppliers

Final yr, a set of European Cloud Suppliers filed complaints with the European Fee, elevating considerations with our licensing practices. In follow-on discussions with these firms and others, it was clear there was extra wanted to assist European cloud suppliers and provide extra alternatives for them to higher serve clients. Our European Cloud Supplier Initiative has been designed to handle their considerations particularly within the following areas:

Licensing evolution

Our European Cloud Supplier Initiative has been anchored by updates to our world licensing packages. A sequence of adjustments had been launched in October 2022 together with:

New versatile virtualization profit for patrons to drastically develop their choices permitting them to deploy their software program subscriptions on any European cloud supplier’s infrastructure.
New licensing choices for Home windows Server
New virtualization advantages for Home windows 11 with Microsoft 365 licenses
An up to date cloud answer supplier program the place any answer will be hosted by European cloud answer suppliers. To this point, greater than 75 European and UK primarily based CSPs have signed up.

Constructing relationships

For Microsoft, it was of the utmost significance to re-establish relationships with European Cloud Suppliers with a purpose to assist the neighborhood obtain its targets and create extra alternatives to have efficient two-way communication. Previously yr, we now have established a brand new assist workforce devoted to European cloud suppliers. The workforce’s mission is to assist their enterprise goals by leveraging Microsoft’s expertise and sources, and delivered via each depth engagements with the biggest cloud suppliers in Europe and new digital engagements together with month-to-month occasions and a brand new web site to assist the broader European ecosystem at scale. As well as, we now have engaged in a sequence of discussions via the European Cloud Alliance and native commerce associations to make sure a sturdy and efficient suggestions loop. We plan to take extra steps on this regard over the following few months.

Assembly European governments’ sovereign wants with native trusted expertise suppliers

We acknowledge that many European governments need extra custom-made cloud options for his or her sovereign expertise situations. Final July, we introduced Microsoft Cloud for Sovereignty for presidency clients trying to harness the ability of the general public cloud whereas assembly particular compliance, safety and coverage necessities. Because the announcement, we now have delivered two private-preview releases. We’ve got labored with trusted companions in native markets together with Leonardo in Italy, Proximus in Belgium and Telefonica in Spain and proceed to work with governments and different trusted companions throughout Europe and all over the world. Earlier this week, we shared a weblog put up providing learnings round the important thing challenges that governments face in assembly their digital transformation goals whereas making certain native sovereignty necessities are met.

Supporting European regulation

We’re in a brand new period for expertise, and this implies a brand new space of tech regulation. One which we as an organization consider is essential to adapt to, and to have interaction in dialogue whereas regulatory proposals are in improvement. Some highlights of our assist and engagement on key EU regulatory initiatives embrace:

Digital Operational Resilience Act (DORA): Microsoft has engaged from the start of the legislative course of via adoption to make sure monetary providers {industry} clients in Europe can proceed to depend on our providers and new resiliency measures. We proceed to have interaction with each regulators and clients to make clear and guarantee corresponding regulatory compliance.
Digital Providers Act (DSA): Microsoft was supportive of lots of the goals of recent European guidelines on-line content material, and pursuant to the adopted DSA, publishes info semi-annually on its common month-to-month energetic customers within the European Union, calculated over a six-month interval. Most lately, LinkedIn and Bing had been included within the listing of the primary 19 firms designated by the fee as topic to the brand new necessities.
Digital Markets Act (DMA): Microsoft has been publicly supportive of EC efforts to develop new guidelines for big digital platforms that function as “gatekeepers.” Following adoption, Microsoft has been in common dialogue with EC enforcement officers on the implementation of the brand new necessities and which entities and providers might in the end fall in scope.
Company Sustainability Reporting Directive (CSRD): Following its adoption, Microsoft is getting ready to make sure Microsoft and buyer compliance in addition to product readiness. Microsoft’s has been and stays supportive of EU efforts and management on this area.
EU E-Proof Regulation: The long-awaited proposal has been supported by Microsoft from the outset and has lastly reached EU political settlement, importantly, serving to to pave the way in which for a CLOUD Act settlement between the EU and the US.
Community Info Safety Directive 2 (NIS2): Microsoft has supported lots of the baseline necessities on crucial infrastructure sectors and is now targeted on engagement throughout Europe with each regulators and CI clients to make sure harmonized implementation.

What’s subsequent

A yr in the past, we promised to maneuver quickly in order that we might modify and study shortly. We’re nonetheless studying. And listening. And dealing to enhance. Our work is much from being accomplished. We’ll proceed to supply enter on key legislative initiatives and adapt to new laws. We’ll proceed to advance new applied sciences that meet Europe’s wants and are aligned with Europe’s values. We’ll proceed to assist clients and companions in Europe to leverage and profit from new expertise options. We’ll proceed to prioritize transparency and communication, whereas working collectively to assist Europe advance its digital ambitions and defend its world competitiveness.