Microsoft to acquire communications software firm Metaswitch Networks

Redmond headquartered technology major Microsoft has inked a deal to acquire Metaswitch Networks, a company that provides cloud-based communications software for telecom operators. 

Financial terms of the deal were not disclosed.

The acquisition will help Microsoft improve its cloud services in the communications sector, especially at the time when telecom firms are queuing up to launch 5G services. 

Microsoft will adopt the Metaswitch Networks solutions on its Azure platform, the company said in a blog post. Metaswitch will add additional depth to its cloud infrastructure with the specialised software required to run telecom functions, applications and networks, Microsoft said.

“As the industry moves to 5G, operators will have opportunities to advance the virtualisation of their core networks and move forward on a path to an increasingly cloud-native future. Microsoft will continue to meet customers where they are, working together with the industry as operators and network equipment providers evolve their own operations,” Microsoft said.

Founded in 1981 by Ian Ferguson, London headquartered Metaswitch Networks offers solutions on network functions virtualisation, software defined networking, network transformation, software infrastructure, as well as a unified communications platform. It counts over 1,000 enterprises as customers, and runs several offices in the US and Asia Pacific region.  

The buyout of Metaswitch Networks compliments Microsoft’s acquisition of virtualised mobile network solutions provider Affirmed Networks, which closed in April. 

Late last month, the technology major placed its revenue guidance in the range of $35.85 billion-$36.8 billion for the final quarter of FY20, with a flat revenue growth. In the third quarter of the year, the firm posted a robust 15% year-on-year growth in revenues to $35 billion.