Microsoft is acquiring Affirmed Networks in a move to bolster its position in the 5G ecosystem. The deal follows on a number of recent 5G-focused cloud deals Microsoft has scored with telecommunication operators, though this one moves the cloud giant’s operations slightly outside of that zone.

Yousef Khalidi, corporate VP for Azure Networking at Microsoft, explained in a blog post that the deal will allow the company to provide a more compelling platform to operators.

“This acquisition will allow us to evolve our work with the telecommunications industry, building on our secure and trusted cloud platform for operators,” Khalidi wrote. “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.”

Financial terms were not announced, but Affirmed has raised $155 million, according to Crunchbase, including a $38 million funding round a year ago.

The deal also comes just a day after Affirmed named Anand Krishnamurthy as the company’s new president and CEO. Krishnamurthy, who previously served as COO, replaced Hassan Ahmed, who retired from the CEO position but will stay on as chairman of the company's board.

Affirmed’s efforts have been focused in virtualized evolved packet core (vEPC) platforms that support 5G deployments. The vendor last year launched its UnityCloud platform that supports 5G standalone (SA) deployments. That launch followed the introduction of its 5G non-standalone (NSA) mobile core platform that Affirmed also demonstrated running on top of Amazon Web Services (AWS) cloud platform.

Affirmed has also been gaining traction with mobile operators. The vendor earlier this year scored a pair of operator deals with Finland’s DNA and Latin America’s Millicom.

"Affirmed brings depth in NFV, virtualized 5G core, edge, and IoT support with an emphasis on cloud scale that will compliment the Azure service," Will Townsend, senior analyst at Moor Insights & Strategy, said of the deal in an email to SDxCentral. "In my opinion it strengthens their position to support connectivity and service delivery across multiple domains from the traditional data center, campus, branch out further to core to edge of mobile cellular networks."

Microsoft's Khalidi also offered up an olive branch to players in the traditional EPC space, which is expected to be upended by the broader move toward virtualized platforms. This include vendors like Ericsson, Nokia, Huawei, and Cisco.

“As we continue to extend cloud-based software defined networking into the world of 5G connectivity, we recognize the importance of deep and strong partnerships and interoperability,” he explained. “To ensure the success of our customers, we will work closely with existing suppliers, emerging innovators, and other stakeholders around the world including in Europe, Asia, the U.S., and other markets to help make this vision a reality,”

Clouds Rolling Into 5G

The acquisition follows up on a number of deals Microsoft made last year tied to 5G deployments. Many of those were with AT&T targeted at bolstering the carrier’s 5G efforts.

These included work that will allow AT&T’s software-defined and virtualized 5G core that make up its Network Cloud platform to support Azure services closer to customers, and a deal reportedly worth up to $2 billion for Microsoft to be the “preferred cloud provider” for non-network applications including Microsoft’s cloud-based Office 365 tools.

Microsoft’s move also comes on the heels of similar 5G-focused plays by its cloud rivals.

Google earlier this month launched its Global Mobile Edge Cloud platform targeted at carriers to help them drive revenues and improve operations in core network functions. The launch also included a deal with AT&T to create and deliver 5G edge computing services that will ride on the AT&T Network Edge and make use of Google Cloud’s capabilities in Kubernetes, artificial intelligence (AI), machine learning, data, and analytics.

And Amazon Web Services (AWS) late last year struck a deal with Verizon to combine the operator’s 5G network with Amazon Web Services’ (AWS’) Wavelength edge compute service. That deal will extend Verizon’s computing platform closer to the 5G network and end-users.

Townsend noted that the latest Microsoft purchase aligns with those moves, adding that Affirmed will bring more depth to its edge focus. "Edge and 5G will also combine in my mind to unlock compelling use cases by placing more resources at the data creation point," he explained.