Microsoft acquires Metaswitch in telecom push

Satya Nadella, CEO of Microsoft


Microsoft announced Thursday that it has agreed to acquire Metaswitch Networks, a company that offers software that telecommunications companies can use to provide voice and data services to their customers. Terms of the deal have not been released.

The move shows Microsoft’s efforts to target a single industry through inorganic deals rather than developing in-house expertise and technology. These efforts could help Microsoft further adopt its Azure public cloud, which challenges market leader Amazon Web Services.

“The convergence of clouds and communication networks represents a unique opportunity for Microsoft to serve operators around the world through continuous investments in Azure, adding additional depth to our hyperscale cloud infrastructure with the specialized software required to run the functions, applications and virtualized communication networks “, Yousef Khalidi, a vice-president of Microsoft, wrote in a blog post.

Metaswitch has a 5G product to manage network traffic that can run on a public cloud infrastructure. Customers could rely on enterprise software over the cloud infrastructure rather than adding capacity in their own data centers to support additional network usage at higher speeds.

Microsoft announced the deal three weeks after it closed its acquisition of Affirmed Networks, a start-up targeting mobile operators. Last year, Microsoft itself announced a multi-year cloud agreement with AT&T.

Customers listed on the Metaswitch website include British Telecom, Sprint (now owned by T-Mobile), Swisscom, Telstra and Vodafone.

Metaswitch has nearly 700 employees, according to LinkedIn. The company was founded in 1981 and is headquartered in London and Los Altos, California. Investors understand Sequoia Capital.

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