Microsoft targets telco market with UK acquisition

Tech titan's newest purchase 'complements' industry's move towards 5G

Microsoft has inked a deal to acquire Enfield-based Metaswitch Networks for an undisclosed sum.

Founded as Data Connection in 1981 by former IBM employees, Metaswitch specialises in virtualised network software and voice, data and comms solutions for operators. It reported $180m in revenue for its year ending 31 August 2019, according to Companies House.

The purchase will "add additional depth" to Microsoft's Azure infrastructure and it will complement its recent acquisition of Affirmed Networks, the vendor noted.

"Metaswitch's complementary portfolio of ultra-high-performance, cloud-native communications software will expand our range of offerings available for the telecommunications industry," it stated,

"Microsoft intends to leverage the talent and technology of these two organisations, 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 tech titan is placing its bets on operators virtualising their core networks and becoming more cloud-native as the industry charges towards 5G, stating that the tech will allow telcos to accelerate their services and deliver faster, more resilient and secure experiences to customers.

"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," it added.

"We will continue to partner with existing suppliers, emerging innovators and network equipment partners to share roadmaps and explore expanded opportunities to work together…a future that is interoperable has never been more important to ensure the success of customers and partners.

"Our 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 than they've faced in the past."