It’s only been a few weeks since Microsoft announced that it made a deal to acquire Affirmed Networks, a 5G networking solutions firm. Now, Microsoft plans to acquire Metaswitch Networks, a U.K.-based software solutions company. Microsoft is acquiring the companies to strengthen its foothold in the 5G telecoms industry. Sprint, BT, and RINA are some of the network providers and carriers that use Metaswitch. Metaswitch has also been backed by investors such as Sequoia, Francisco Partners, Northgate, and others. The terms of the deal between Microsoft and Metaswitch have not been made public.
Technology companies have been increasingly leveraging cloud architecture and 5G to play larger roles in their capacity as service providers. Amazon Web Services has been strengthening its division and Rakuten, a Japanese streaming service and e-commerce company, plans to acquire Innoeye, a cloud-based communications company.
Metaswitch’s cloud portfolio includes 5G, contact center communications products, and voice communications offerings.
A spokesman for Microsoft said that the company will leverage the technology of both organizations to extend the Azure cloud computing service platform. The company will “deploy and grow these capabilities at scale in a way that is secure, efficient, and creates a sustainable ecosystem.”
Yousef Khalidi, corporate vice president for Microsoft, noted: “The convergence of cloud and communication networks presents a unique opportunity for Microsoft to serve operators globally via continued investment in Azure, adding additional depth to our hyper-scale cloud infrastructure with the specialized software required to run virtualized communication functions, applications, and networks.”
Metaswitch’s 5G offering can handle network traffic run on cloud infrastructure. The California-based Metaswitch employs around 700 people and was founded in 1981.