Why Microsoft (MSFT) Is Buying Metaswitch Networks

By Amit Chowdhry ● May 15, 2020
  • Microsoft Corporation (NASDAQ:MSFT) has announced a definitive agreement to buy Metaswitch Networks. These are the details about the deal.

Microsoft Corporation (NASDAQ:MSFT) has announced a definitive agreement to buy Metaswitch Networks, which is a leading provider of virtualized network software and voice, data, and communications solutions for operators. The terms of the deal were undisclosed.

Microsoft Corporate Vice President Yousef Khalidi pointed out that the convergence of cloud and communication networks presents a unique opportunity for the company to server operators globally via continued investment in Azure and add more depth to the hyperscale cloud infrastructure with the specialized software required for running virtualized communication functions, applications, and networks.

“This announcement builds on our recent acquisition of Affirmed Networks, which closed on April 23, 2020,” said Khalidi in a blog post. “Metaswitch’s complementary portfolio of ultra-high-performance, cloud-native communications software will expand our range of offerings available for the telecommunications industry. Microsoft intends to leverage the talent and technology of these two organizations, extending the Azure platform to both deploy and grow these capabilities at scale in a way that is secure, efficient, and creates a sustainable ecosystem.”

And as the industry moves to 5G, operators will have opportunities to advance the virtualization of their core networks and move on a path to an increasingly cloud-native future. Plus Microsoft will continue to meet customers where they are, working together with the industry and network equipment providers evolve their own operations.

“We will continue to support hybrid and multi-cloud models to create a more diverse telecom ecosystem and spur faster innovation, an expanded set of unique offerings, and greater opportunities for differentiation. We will continue to partner with existing suppliers, emerging innovators, and network equipment partners to share roadmaps and explore expanded opportunities to work together, including in the areas of radio access networks (RAN), next-generation core, virtualized services, orchestration and operations support system/business support system (OSS/BSS) modernization,” added Khalidi. “A future that is interoperable has never been more important to ensure the success of customers and partners.”

5G technology will give operators a path to accelerate service innovation and deliver new transformative experiences that are faster, more resilient, and more secure. And Microsoft’s intention over time is to create modern alternatives to network infrastructure, enabling operators to deliver existing and value-added services with greater cost efficiency and lower capital investment.