MICROSOFT SET. To Acquire Metaswitch Networks For 5G!


Microsoft set

OS giant, Microsoft set to acquire Metaswitch Networks in a bid to strengthen its cloub-based telecoms provision. This comes after weeks of previously announcing a deal that will see the tech and OS giant acquire 5G specialist Affirmed Networks, however, the latest acquisition of cloud-based communications products deployed by carriers and network providers is a U.K-base.

It’s evident this is emerging from a growing focus precisely from tech companies pushing to leverage cloud architectures that are aimed at adaptation of new networking technology – precisely 5G, that will, in turn, capitalize on a bigger role in becoming bidirectional service providers both to carriers and those that would like to develop carrier-like services, through the provision of virtualized products delivered from its cloud.

Some other companies have also been scaling up their product in this space, such as Amazon which is scaling up AWS cloud service. Also in the same vein, a Japanese e-commerce and streaming services giant – Rakuten equally announced it will be acquiring a specialized cloud-based communication service Innoeye.

Meanwhile, terms of this deal are yet undisclosed, but the latest acquired company by Microsoft has been in service for about 49 years and has Francisco Partners and Sequoia, Northgate, and WRV as investors, although its funds are still undisclosed.       

With regards to the latest (Microsoft set) acquisition, the tech and OS giant described the inclusion of Metaswitch cloud-native service (including 5G data, unified communications, and voice) products as “complementary” to Affirmed Networks. However, responding to this development, Microsoft made it clear that:

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”.

The reality of gradually coughing out huge assets and upgrade in going forward is also a concern, looking at operational expenditure as this represents big investment and cost, this the subject OS giant is also aware of. However, the migration to 5G is also viewed as an opportunity for companies that render services to carriers, while the cost has been a huge concern coupled with equipment that is facing out which a number of that will currently be replaced with software-based services. Responding to that, the OS giant made it clear that:

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, adding that, “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. A future that is interoperable has never been more important to ensure the success of customers and partners”.

Lastly, it’s understood the subject OS giant has been offering similar services coupled with the sale of its IT via carriers’ years before now, while the latest development is an evidence of its enterprise role and its future plan.

With Microsoft set to acquire Metaswitch Networks, what is your take on its 5G cloud service?