Metaswitch acquisition: Microsoft aims to emerge as a platform for telecom innovation

Enterpise giant Microsoft on Thursday signed a definitive agreement to acquire UK-based Metaswitch Network, a provider of virtualised network software and voice, data and communications solutions for operators.

“The convergence of cloud and communication networks presents a unique opportunity for Microsoft to serve operators globally via continued investment in Azure,” Microsoft had commented on the development.

Taking note of the development, John Byrne, Service Director, Telecom Technology & Software at GlobalData said that with the help of these acquisitions Microsoft aspires to emerge as a platform for telecom innovation for network operators.

He further said that Microsoft is on a campaign of ‘making friends with’ both traditional and disruptive network software vendors through a two-pronged approach of expanding alliances and acquiring innovators.

“Microsoft has made it clear, through a host of acquisitions and alliances, that the long term goal is to solidify Azure as the underlying platform for a host of network and IT functions as part of an expansive telco cloud strategy,” he added.

Byrne said that as the public-cloud-centric functions continue to rise for a wide range of network functions, Microsoft’s long-term vision is to establish Azure as the network to support the growing number of those functions.

“In the medium-term, this will impact traditional telecom vendors as Microsoft continues to solidify its ‘ecosystem’ approach to telco cloud, which is reflected in its recently-expanded focus on Azure Edge Zones to help solve the edge computing dilemma the industry has been in neutral about the past three years,” Byrne explained the impact of Microsoft increased focus on ‘ecosystem’ approach.

He said the data analytics firm expects Microsoft’s next telco focus to be the Open RAN solutions that would significantly fill out Microsoft’s expanding focus on the telco ecosystem.