Alianza Signs Definitive Agreement to Acquire Metaswitch from Microsoft

Acquisition creates clear path for communications service providers to enter the cloud-native and AI services economy

PLEASANT GROVE, UT - December 10, 2024 - Alianza, Inc., a leading cloud communications platform for service providers, today announced it has signed a definitive agreement with Microsoft to acquire Metaswitch, a provider of high-performance communications software.  The acquisition will give Alianza a combined customer base of more than 1,000 communications service providers, including 19 of the top 20 global operators, as well as a comprehensive portfolio of services that will streamline the path to a cloud-orchestrated, AI powered communications future.

“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.”

With the integration of Metaswitch’s voice and communications software services, IP protocol, and engineering talent, Alianza will provide operators industry-wide with the following key benefits:

• Revenue Growth: Alianza will enable service providers to close the services revenue gap, monetize their network investments, and reclaim their right to win.
• Deployment Flexibility: Alianza will empower communications service providers to deploy modern solutions and experiences to their customers via on-premises, public, private, or hybrid cloud models.
• Operational Simplicity: Alianza will offer service providers the ability to consolidate complex voice operations onto a single, comprehensive operating platform.
• Innovation Roadmap: Alianza will accelerate investments in product innovation, including AI-based capabilities, for service providers to generate new revenue and deliver greater automation and insights for end-user customers.

“Today, global operators face increasing competitive threats from OTT communications companies, whose services are gradually eroding their long-held position as market leader in the delivery of voice and collaboration services,” said Rohit Mehra, group vice president, Worldwide Network and Telecommunications, IDC. “The combination of the Metaswitch business with Alianza brings together a deep portfolio of services and expertise with proven cloud technology and product innovation to deliver end-to-end capabilities for service providers to modernize at their own pace.”

Over the past decade, service providers have been placing a multi-trillion dollar bet that improving network capacity would result in revenue growth, but the bet hasn’t paid off. Industry-wide revenue has stagnated and in the race for bandwidth, service providers have neglected their patchwork of legacy infrastructure, technology, and systems, creating a massive gap in their ability to maintain, let alone grow services revenue.

“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.”

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