Microsoft enters the 5G market and rushes for equipment vendors

Not long ago, Microsoft launched Azure for operators.

Azure for operators
Azure for operators

Microsoft’s strategy is very clear, is to provide products and services to global operators.

This means that the cloud giant has officially entered the telecommunications market, or will compete with traditional equipment vendors.

What is “Azure for Operators”?

As we all know, 5G is the era of cloudification, and network function software and apps will be deployed on cloud platforms.

After Microsoft acquired the two core network providers, Affirmed Networks and Metaswitch Networks, it has a certain “CT gene”. Therefore, it is now enhancing the Azure public cloud to an “Operator-oriented Azure” hybrid cloud, which can meet carrier-class requirements. Performance requirements.In this way, “Operator-oriented Azure” can provide operators with a cloud platform, and 5G core network functions can be deployed in “Operator-oriented Azure”. At the same time, Microsoft will also introduce its rich cloud ecology and applications. To the operator’s edge cloud, it helps telecom operators to deploy 5G cloud networks faster and provide customized 5G services to enterprise customers at a lower cost.

Specifically, the cooperation methods between Microsoft and operators are mainly divided into the following four types:

Under the above four cooperation methods, Microsoft provides operators with Azure public cloud ecosystem and edge cloud (Azure Edge Zone) platform services. Depending on the degree of cooperation, the operator’s edge cloud can be partly introduced into the Azure Edge Zone, or rely entirely on the Azure Edge Zone to deploy core network functions and applications.

However, because Microsoft has acquired two core network providers, Affirmed Networks and Metaswitch Networks, this means that Microsoft can also provide a complete cloud-native 5G core network solution from cloud platform to core network functions.

Therefore, there is the following fifth cooperation method.

In this way of cooperation, Microsoft has become a true 5G core network supplier, directly competing with traditional equipment manufacturers such as Huawei, Ericsson, Nokia, and ZTE.

Of course, considering that in the 5G public network market, it is difficult for Microsoft as a novice to compete with the Big Four, but in the emerging field of 5G private networks, Microsoft may become a strong competitor.

In fact, Microsoft’s ambitions are not just to provide public cloud (hybrid cloud)/edge cloud platforms and core network functions. The cloud giant is also expanding its telecom market into the radio access network (RAN) field.

The way to expand is to cooperate with some vRAN or ORAN suppliers.

Not long ago, Samsung announced an end-to-end cooperation with Microsoft on cloud-based 5G enterprise private network solutions.

According to the cooperation agreement, Samsung will deploy vRAN (virtualized RAN), virtualized core network and MEC on Microsoft Azure to implement a fully virtualized 5G private network solution on the Microsoft Azure cloud platform to help operators and enterprises quickly deploy Flexible and scalable 5G private network.

The rough cooperation structure is shown below:

It is not difficult to estimate that Microsoft is not only cooperating with Samsung, but also with other small vRAN or ORAN software vendors to launch a complete 5G solution from the cloud to the edge, from the core network to the radio access network. After all, Microsoft has strong strength in cloud ecology, cloud platform and technology, and some small vRAN or ORAN software vendors are willing to hug Microsoft’s thigh.

This in turn means that Microsoft will form a competitive relationship with the traditional four major equipment manufacturers in the 5G market.

In short, Azure for operators means that Microsoft has entered the 5G market and is competing with traditional equipment vendors. It’s no wonder that recently there have been rumors that “Microsoft intends to acquire Nokia again”.