Alianza has agreed a deal to buy software company Metaswitch from Microsoft for an undisclosed sum.

Microsoft only acquired the virtualized network software and voice, data, and communications specialist back in 2020 to boost its 5G capabilities. Financial terms of that deal were also undisclosed.

Metaswitch
– Metaswitch

The deal means Alianza, a cloud communications provider, will have a combined customer base of more than 1,000 communications service providers, including 19 of the top 20 global operators.

“Alianza’s commitment to innovation and customer experience sets a strong foundation for Metaswitch customers to continue to grow their business,” said Yousef Khalidi, Microsoft corporate vice president.

“The telecommunications industry remains a priority for Microsoft, and we will continue to empower telecom operators to modernize, monetize, and innovate through our secure AI platform. As we advance our cloud platform and AI capabilities, partners like Alianza are crucial for providing support to our mutual customers.”

Alianza noted that it will integrate Metaswitch's voice and communications software services, IP protocol, and engineering talent.

The company claims that the move will boost deployment flexibility, operational simplicity, and will also help to accelerate AI-based capabilities.

“The acquisition of Metaswitch is about resetting the playing field and enabling service providers to reassert their market leadership,” said Brian Beutler, founder and CEO, Alianza.

“The Alianza cloud communications platform empowers operators to monetize network investments through improved customer experiences and the delivery of modern, high-margin communications service offerings.”

Metaswitch was founded in 1981 by seven former IBM employees. It initially designed, developed, manufactured, and marketed telecommunications software for telcos, vendors, and large enterprises.

The transaction is expected to close in the first quarter of 2025.