Microsoft is making strides in the telco cloud market with a new deal with Etisalat, the United Arab Emirates’ leading telecom operator. The deal involves Etisalat adopting Microsoft’s 5G packet core technology and running it on the Nexus platform. This move signals Microsoft’s growing presence as a 5G core vendor outside the US, challenging established telecom equipment suppliers like Ericsson and Nokia.
Unlike earlier reports, this deal does not mean that Etisalat is moving its core to the public cloud. The Azure Operator Nexus is a hybrid cloud, enabling the user plane and control plane to remain on-premises while allowing the management plane data to flow to the public cloud as needed. Microsoft’s establishment of public cloud facilities in the UAE in 2019 addresses concerns about data storage in other jurisdictions, addressing sovereignty concerns.
The 5G packet core technology is an evolution of the Affirmed technology that Microsoft acquired through its purchase of Affirmed Networks in 2020 for $1.35 billion. This acquisition, followed by the acquisition of Metaswitch, solidifies Microsoft’s position as a 5G core vendor globally.
While it remains unclear which existing core vendor Etisalat is replacing, it is evident that Microsoft’s offering was chosen for its packet core and other peripheral network functions. Ericsson had previously named Etisalat as a 5G cloud core customer in 2020.
Microsoft’s success in expanding its telco cloud business goes beyond this deal, as it is also in the running for a cloud core deal with Three, one of the UK’s mobile network operators. However, some European telcos are still determined to build their own platforms rather than rely on hyperscalers like Microsoft. Nonetheless, Microsoft encourages these telcos to consider the value of AI applications and adding value to their systems rather than focusing solely on infrastructure.
Telcos are increasingly interested in hosting all network functions on a single horizontal platform, aligning with Microsoft’s vision for Nexus. However, the challenge lies in the siloed nature of network functions, which are often designed to run on specific vendor platforms. Cloud-native solutions offer the flexibility to run on any stack, but legacy equipment providers face the challenge of rewriting code and making significant investments to adopt this approach.
Overall, Microsoft’s deal with Etisalat showcases the company’s growing foothold in the telco cloud market, offering operators an alternative to traditional telecom equipment suppliers and highlighting the benefits of cloud-native solutions for network functions.
An FAQ section based on the main topics and information presented in the article:
Q: What is Microsoft’s recent deal with Etisalat?
A: Microsoft has partnered with Etisalat, the leading telecom operator in the United Arab Emirates, to provide 5G packet core technology using its Nexus platform.
Q: Does this mean that Etisalat is moving its core to the public cloud?
A: No, this deal does not involve moving Etisalat’s core to the public cloud. Microsoft’s Azure Operator Nexus is a hybrid cloud that allows the user plane and control plane to remain on-premises, while the management plane data can flow to the public cloud.
Q: What is Microsoft’s goal by establishing public cloud facilities in the UAE?
A: Microsoft’s establishment of public cloud facilities in the UAE addresses concerns about data storage in other jurisdictions and sovereignty concerns.
Q: What technology is Microsoft providing to Etisalat?
A: Microsoft is providing its 5G packet core technology, which is an evolution of the Affirmed technology acquired through its purchase of Affirmed Networks in 2020.
Q: Who are the main competitors for Microsoft in the telco cloud market?
A: Microsoft’s main competitors in the telco cloud market are established telecom equipment suppliers like Ericsson and Nokia.
Q: What other acquisitions has Microsoft made to solidify its position in the 5G core market?
A: In addition to Affirmed Networks, Microsoft also acquired Metaswitch, further strengthening its position as a 5G core vendor globally.
Q: Is it known which existing core vendor Etisalat is replacing?
A: It is unclear which existing core vendor Etisalat is replacing, but Microsoft’s offering was chosen for its packet core and other peripheral network functions.
Q: Is Microsoft also in the running for a cloud core deal with another telecom operator?
A: Yes, Microsoft is also in the running for a cloud core deal with Three, one of the UK’s mobile network operators.
Q: Are European telcos interested in using hyperscalers like Microsoft for their platforms?
A: Some European telcos are still determined to build their own platforms rather than rely on hyperscalers like Microsoft.
Q: What does Microsoft encourage telcos to consider?
A: Microsoft encourages telcos to consider the value of AI applications and adding value to their systems, rather than solely focusing on infrastructure.
Key terms/jargon:
– Telco Cloud: Refers to the cloud services and infrastructure specifically designed and optimized for telecommunication companies.
– 5G Packet Core: The central component of a 5G network that handles the processing, routing, and management of data packets.
– Hybrid Cloud: A cloud computing environment that combines a public cloud and a private cloud, allowing data and applications to be shared between them.
– User Plane: The part of a communication network that carries user-generated traffic and data packets.
– Control Plane: The part of a communication network that manages and controls the flow of traffic and data packets.
– Public Cloud: A cloud computing model where the services and infrastructure are provided over the internet by a third-party service provider.
– Data Storage: The process of storing and preserving data for future use.
– Sovereignty Concerns: Worries related to the control, ownership, and jurisdiction of data and digital assets.
– Cloud-native Solutions: Software applications or services that are built and optimized to run in a cloud computing environment.
Suggested related links:
– Microsoft
– Etisalat
– Ericsson
– Nokia
– Three
The source of the article is from the blog hashtagsroom.com