Microsoft Azure, one of the undisputed giants in the public cloud sector, is ramping up its game in response to exponential demand for artificial intelligence (AI). To make it happen, the company is leaning on a trusted ally: Nokia. Nokia, a name synonymous with innovation in networking, has just nailed down a five-year extension of its partnership with Microsoft Azure. This hefty deal comprises Nokia's crucial role in supplying cutting-edge networking technology across Microsoft's datacenters globally. But this isn't just another business contract—it’s a window into how the next generation of datacenters is shaping up.
Furthermore, Nokia will begin rolling out its 7250 IXR-10e routers to Azure's datacenters starting in February 2025. Designed for large-scale interconnectivity, these routers will make the Microsoft cloud not just bigger, but much, much faster. This upgrade will support rapid data transfers and better connectivity across Azure’s vast global network. Let’s pause here for a moment—400GE connectivity means performance that can seamlessly support high-bandwidth tasks like big data analytics, real-time AI processing, and multi-cloud deployments.
In short, think faster computational speeds, more robust cloud services, and scalability for a global marketplace that keeps demanding more.
SONiC, which stands for Software for Open Networking in the Cloud, is an innovative, open-source operating system for networking hardware. Developed by Microsoft and embraced by industry players like Nokia, SONiC transforms what switches and routers can do by providing modularity and scalability. Why is this crucial? It means the infrastructure can grow and adapt as data loads scale upwards, all while minimizing cost. With SONiC, you’re deploying a system that thrives under the demands of modern, cloud-heavy workloads—think Netflix streaming millions of videos concurrently or ChatGPT processing millions of queries simultaneously.
Now let’s talk about the new routers Nokia is dropping into the datacenters. The 7250 IXR-10e routers are beasts designed for hyperscale datacenters. Hyperscaling means things operate on a massively global level, and these routers shine here—handling data efficiently across multiple regions, ensuring uptime, and keeping the network responsive no matter how crazy the demand gets. With these routers, Microsoft and Nokia are readying Azure to operate not just as a market leader now but as a juggernaut well into the future.
Here’s the puzzle piece: AI is hungry—hungry for data, computation, and bandwidth. Training AI models like GPT-4 consumes enormous computational and storage resources, not to mention the inferencing process that occurs when those trained AI models answer your questions or generate your code. What does this mean for datacenters? First, they need ridiculously fast interconnects, where the step from 100GE to 400GE connectivity is mission-critical. Second, they require scalability, which hinges on hardware robust enough to handle the heavy lifting both now and in future.
In its most recent financial update, Nokia highlighted datacenters as a growth vertical, citing major opportunities at the hyperscaler and smaller data-center levels. This deal is their “we’ve made it” moment, pushing their high-performance portfolio onto the world stage. Vach Kompella, Nokia’s SVP of IP Networks, claims this win is the result of sustained investment into state-of-the-art innovation—and, clearly, it’s paying off.
Beyond hyperscalers, there’s the real estate issue: Europe is grappling with limited land and power availability for building data facilities, according to recent reports. Meanwhile, local governments globally are introducing sustainability requirements pressuring datacenters to become more energy efficient. Green IT—another slice of this puzzle—is becoming a vital consideration as hyperscalers like Azure look to maintain eco-friendly reputations amidst growing power demands.
This makes Nokia’s and Microsoft’s collaboration all the more critical: SONiC and the upgraded routers don’t just boost performance—they’re designed to be scalable and efficient, key to combating the logistics and sustainability hurdles that datacenters increasingly face.
Source: Computer Weekly Nokia lands five-year extension on Microsoft Azure datacentre networking deal
What's in the Deal?
This agreement is anything but ordinary. Nokia will deploy its arsenal of high-performance, SONiC-based datacenter switches, a key ingredient in Microsoft's ambitious plan to upgrade datacenters from 100GE (Gigabit Ethernet) to 400GE connectivity. What does that mean for Azure's infrastructure? More speed, improved scalability, and enhanced reliability across the board. This partnership underscores Microsoft’s intent to future-proof its datacenters to handle the relentless growth of traffic and massive compute workloads sparked largely by AI technologies.Furthermore, Nokia will begin rolling out its 7250 IXR-10e routers to Azure's datacenters starting in February 2025. Designed for large-scale interconnectivity, these routers will make the Microsoft cloud not just bigger, but much, much faster. This upgrade will support rapid data transfers and better connectivity across Azure’s vast global network. Let’s pause here for a moment—400GE connectivity means performance that can seamlessly support high-bandwidth tasks like big data analytics, real-time AI processing, and multi-cloud deployments.
In short, think faster computational speeds, more robust cloud services, and scalability for a global marketplace that keeps demanding more.
Unpacking the Tech: SONiC and 7250 IXR-10e Routers
This isn’t just a PR stunt with fancy tech buzzwords. Let’s take a quick detour into the world of networking tech to understand what’s under the hood.SONiC, which stands for Software for Open Networking in the Cloud, is an innovative, open-source operating system for networking hardware. Developed by Microsoft and embraced by industry players like Nokia, SONiC transforms what switches and routers can do by providing modularity and scalability. Why is this crucial? It means the infrastructure can grow and adapt as data loads scale upwards, all while minimizing cost. With SONiC, you’re deploying a system that thrives under the demands of modern, cloud-heavy workloads—think Netflix streaming millions of videos concurrently or ChatGPT processing millions of queries simultaneously.
Now let’s talk about the new routers Nokia is dropping into the datacenters. The 7250 IXR-10e routers are beasts designed for hyperscale datacenters. Hyperscaling means things operate on a massively global level, and these routers shine here—handling data efficiently across multiple regions, ensuring uptime, and keeping the network responsive no matter how crazy the demand gets. With these routers, Microsoft and Nokia are readying Azure to operate not just as a market leader now but as a juggernaut well into the future.
Microsoft’s Race to Meet AI Demand
This deal isn't just about bragging rights. It's about building trenches in a battlefield where cloud providers are scrambling to support the explosion of AI-driven workloads. Azure’s AI and machine learning tools, like OpenAI integrations and Azure Machine Learning, have become massive draws for developers and enterprises. However, without a spiffed-up supporting infrastructure, Azure would risk falling into obsolescence when confronted with the computing demands of AI.Here’s the puzzle piece: AI is hungry—hungry for data, computation, and bandwidth. Training AI models like GPT-4 consumes enormous computational and storage resources, not to mention the inferencing process that occurs when those trained AI models answer your questions or generate your code. What does this mean for datacenters? First, they need ridiculously fast interconnects, where the step from 100GE to 400GE connectivity is mission-critical. Second, they require scalability, which hinges on hardware robust enough to handle the heavy lifting both now and in future.
What Nokia Gains
Let’s not forget that Nokia isn't just a sidekick here. This partnership expands Nokia’s global footprint to over 30 countries, reinforcing its position as a major player in cloud infrastructure technology. Network equipment is a high-stakes, high-margin market, and breaking into hyperscale datacenters like Azure is a badge of honor—and a lucrative move. Nokia is banking on strategic partnerships with hyperscalers (the megastars of cloud computing like Microsoft, Amazon, and Google) to solidify its market position.In its most recent financial update, Nokia highlighted datacenters as a growth vertical, citing major opportunities at the hyperscaler and smaller data-center levels. This deal is their “we’ve made it” moment, pushing their high-performance portfolio onto the world stage. Vach Kompella, Nokia’s SVP of IP Networks, claims this win is the result of sustained investment into state-of-the-art innovation—and, clearly, it’s paying off.
The Bigger Picture: Cloud Wars Heat Up
Microsoft isn’t the only player gunning for datacenter dominance. AWS (Amazon Web Services), Google Cloud, and others are putting pedal to the metal in upgrading their own infrastructures. Hyperscalers are essentially locked in a race against each other to offer the most reliable and high-performing infrastructure as demand for AI-hosted services barrels forward.Beyond hyperscalers, there’s the real estate issue: Europe is grappling with limited land and power availability for building data facilities, according to recent reports. Meanwhile, local governments globally are introducing sustainability requirements pressuring datacenters to become more energy efficient. Green IT—another slice of this puzzle—is becoming a vital consideration as hyperscalers like Azure look to maintain eco-friendly reputations amidst growing power demands.
This makes Nokia’s and Microsoft’s collaboration all the more critical: SONiC and the upgraded routers don’t just boost performance—they’re designed to be scalable and efficient, key to combating the logistics and sustainability hurdles that datacenters increasingly face.
Microsoft, Nokia, and You
You might be reading this and shrugging, “Why does this matter to me, a Windows user or small business connected to Azure?” Here’s where the dots meet:- Faster Services: Every time you upload a file to OneDrive or use Microsoft Teams for a video call, it’s Azure’s infrastructure making it happen. Upgrades like these ensure smoother, faster service.
- Reliability: Businesses that rely on Azure to host their websites or manage complex applications will benefit from the scalability and lower latency these upgrades promise—and so will their customers.
- The AI Revolution: If you’re intrigued by AI tools like ChatGPT or Azure OpenAI Services, this expansion will enable richer, faster, and more advanced integrations of AI capabilities into everyday Microsoft apps.
Final Thoughts
In the grand chessboard of technology, this deal signals two major moves: Microsoft continuing its dominance in the cloud sector amid a competitive AI and data revolution, and Nokia cementing its place as a strategic provider for global hyperscalers. For consumers, developers, and enterprises, the outcome is clear: Azure is doubling down on speed, reliability, and scalability. If cloud computing is the nervous system of our digital age, Nokia and Microsoft just made sure it’s firing on all cylinders for years to come. Watch this space—there’s more to come.Source: Computer Weekly Nokia lands five-year extension on Microsoft Azure datacentre networking deal
