Nokia has just locked in a five-year extension to keep supplying routers and switches to Microsoft Azure datacentres around the globe. This deal means Nokia will roll out its open-source SONiC-based datacentre switches to both new and existing Azure facilities.
This move supports Microsoft’s plan to upgrade its connectivity from 100GE to 400GE, which is crucial as data traffic continues to surge. Starting in February 2025, Nokia will introduce the Nokia 7250 IXR-10e routers into Azure datacentres, enhancing large-scale interconnectivity. Nokia claims this will not only boost data transfer speeds but also enhance the scalability and reliability of Azure datacentres.
With significant expansion plans, Microsoft is racing to meet the rising demand for AI technologies. Nokia’s partnership will extend its global presence to over 30 countries and solidify its role as a key supplier for Microsoft’s cloud infrastructure.
Vach Kompella, Nokia’s senior vice-president for IP networks, expressed excitement about this new chapter with Microsoft. He highlighted how the expanded agreement enhances product offerings, geographical reach, and commitment to collaboration. He stated that this deal confirms Nokia’s position as a strategic supplier for major cloud companies and shows that their investments are paying off.
David Maltz, a technical fellow at Microsoft Azure Networking, reflected on the past six years of collaboration, particularly in developing SONiC routers to support the rapid growth of Azure datacentres. He emphasized that as leaders in cloud computing, both companies are focused on meeting the high expectations of their customers.
This extended partnership comes on the heels of Nokia’s recent financial results, where CEO Pekka Lundmark noted the company’s ambitions for growth in the datacentre market, identifying significant opportunities in both hyperscale and smaller segments.
