Multi-tech company Microsoft has signed a definitive agreement to acquire cloud-native network company Affirmed Networks for an undisclosed amount.
Affirmed Networks specializes in fully virtualized cloud networking solutions for telecommunications operators. The company focuses on the 5G network and a provider of large cloud storage for telco business.
Before the acquisition, Affirmed raised a total of $155 million, with over 100 enterprise customers like Vodafone, Orange, AT&T, Telus, STC, and Turkcell. Microsoft’s move to acquire the networks company makes sense because it aims to help the telecommunications industry maintain a fast, 5G network from the cloud.
After the completion of the acquisition, Affirmed Networks will join Microsoft. The terms of the management roles aren’t disclosed but companies are still on talks about the specific terms.
On March 25, 2020, Affirmed Networks president and CEO Hassan Ahmed announced retirement. “We founded Affirmed with a vision to help mobile operators fundamentally transform how they build and operate their networks and to create and delivery innovative new services at [a] significantly lower cost than what was considered possible,” said Anand Krishnamurthy.
Krishnamurthy will replace Ahmed in orchestrating the company and the 100 customers across the globe. He served as the COO and president of the company previously before Ahmed gets into the position.
Building a Secure and Trusted Cloud Platform
Microsoft said that the acquisition is part of the company’s initiative to broaden its telecom industry by building secure cloud platforms for operators. The Microsoft Azure helps maintain 5G networks and services efficiently, cost-effective, and more secure.
Affirmed Networks can offer new and innovative solutions tailored to the unique needs of operators. The company can handle the network workloads in the cloud more effectively, with the use of purpose-built hardware and software.
“As we’ve seen with the other technology transformations, we believe that software can play an important role in helping advance 5G and deliver new network solutions that offer step-change advancements in speed, cost and security,” Microsoft Azure vice president Yousef Khalidi.
Affirmed Networks gave Microsoft an entry to the telecommunications industry with its line of customers. Before, telcos would build their own data centers and proprietary hardware to operate. Now, Microsoft can dominate the telco scene thanks to the established roots of Affirmed Networks.
Google also made progress in the Telco industry with Global Mobile Edge Cloud. In the coming months, more large cloud providers will go after the market as they see growth and profit opportunities.