It was announced today that Microsoft has acquired Affirmed Networks which will allow them to provide cloud services for 5G operators. Operators will now be able to deploy and maintain 5G networks and services “more efficiently, more cost-effectively, more rapidly, and more securely”.
Yousef Khalidi, Microsoft’s VP of Azure Networking, wrote on the Microsoft Blog: “Today, I am pleased to announce that we have signed a definitive agreement to acquire Affirmed Networks. Affirmed Networks’ fully virtualized, cloud-native mobile network solutions enable operators to simplify network operations, reduce costs, and rapidly create and launch new revenue-generating services.”
Affirmed Networks is an already well established American-based network support business with its UnityCloud platform that can perform network slicing and manage 5G network capacities. Their clients include AT&T, Orange, SoftBank, and more.
Microsoft has acquired Affirmed Networks after they recently witnessed gained traction with mobile operators in multiple continents showing the reach of their capabilities. The vendor earlier this year secured two operator deals, one with Finland’s DNA and the other with Latin America’s Millicom.
Anand Krishnamurthy, recently appointed president and CEO of Affirmed Networks, said the company had delivered on its vision in a statement: “Working together, we have created a model for mobile networks of the future that is open, cloud-native and capable of being web-scale, all at 70% of the cost of traditional networks… We have been their partner of choice as they prepare for fifth-generation (5G) networks and infrastructure.”
Krishnamurthy will stay with the company as chairman of the company’s board.
The acquisition will see the platform merged with Microsoft’s Azure platform which will allow telecommunication providers to operate their servicing network via the cloud compared to using traditional hardware.
Financial terms of the acquisition were not announced, however, Affirmed has recently raised $155 million, according to Crunchbase, including a $38 million funding round roughly one year ago.
Khalidi continued: ” This acquisition will allow us to evolve our work with the telecommunications industry, building on our secure and trusted cloud platform for operators. With Affirmed Networks, we will be able to offer new and innovative solutions tailored to the unique needs of operators, including managing their network workloads in the cloud.”
Microsoft joins the likes of Goole in the race to gain 5G market share and find a new innovative angle in which to support and enhance the industry’s capabilities. Microsoft and Google are not the only competition in this space, with Hewlett Packard Enterprises (HPE) announcing its 5G Core Stack capability.
Although it’s a step in the right direction for Microsoft’s position in 5G, there are other tech giants such as Amazon with their AWS Wavelength and Google with their Anthos for Telecom whom I’m sure will not want to step up their game to ensure they hold their current market share within 5G.
