Nokia and Microsoft Expand Partnership: Boosting Azure with Advanced Data Centre Solutions

In a power move set to further entwine two tech titans, Nokia has announced a five-year expansion to its existing agreement with Microsoft. This partnership will see Nokia supplying advanced data centre routers and switches for none other than Microsoft's Azure cloud platform—one of the world's leading cloud infrastructures.
The new deal promises to significantly enhance the scalability, speed, and reliability of Microsoft Azure's data centre network infrastructure, cementing Nokia's position as a strategic supplier in the hyperscaler arena.

The Agreement in a Nutshell​

This expansion builds upon an already long-standing collaboration between Nokia and Microsoft. The telecom giant will provide its 7250 IXR-10e platform, enabling multi-terabit-scale interconnectivity within Microsoft data centres. But that's not all—this deal goes beyond just hardware. Let’s break it down:

Key Deliverables Under the Deal:​

1. 7250 IXR-10e Deployment: Nokia's robust router platform will begin deployment in February, scaling Azure's network performance by moving from 100GE (Gigabit Ethernet) to a 400GE network model.
2. SONiC Collaboration: Both companies continue their alliance around open source SONiC technology. For those unfamiliar, SONiC (Software for Open Networking in the Cloud) initially spearheaded by Microsoft, is a breakthrough in software-defined networking that allows unparalleled flexibility and scalability for data centres.
3. Global Expansion: Nokia’s footprint in Azure data centres will expand to over 30 countries, bringing a considerable geographical reach.
4. Greenfield and Brownfield Projects: The hardware and technologies from Nokia will be deployed in both greenfield (new sites) and brownfield (existing infrastructure upgrades) locations.

What Does this Mean for Azure Users?​

Microsoft Azure stands to gain in both reliability and the ability to handle exponential traffic growth. As businesses and consumers shift more data-intensive workloads to the cloud (think AI training, machine learning, and big data analytics), the enhanced interconnectivity will ensure smoother operations, faster response times, and heightened stability.

Why the 7250 IXR-10e Router Platform is a Big Deal​

Explaining the 7250 IXR-10e​

At its core, the 7250 IXR-10e is part of Nokia's IP routing portfolio specifically designed for high-performance data centre interconnect (DCI). It's the backbone technology that enables multiple data centres to exchange staggering amounts of data while meeting service-level demands.
The 7250 IXR-10e supports multi-terabit speeds, which is critical given the rising demand for high-speed computation, especially for applications like artificial intelligence and edge computing.
Features include:

• High-Density Port Configuration: More Ethernet ports per device mean data centres can process more connections simultaneously.
• Energy-Efficient Architecture: As green technology increasingly becomes a corporate mandate, this platform reduces power consumption.
• SONiC Capabilities: Carries Microsoft’s favorite open-source networking software, making it easier to integrate new features cost-effectively.

This router acts like a Formula 1 racer in the world of data traffic: optimized to handle high-pressure, high-speed environments without choking up.

The SONiC Collaboration – A Game-Changer for Data Centres​

SONiC, short for Software for Open Networking in the Cloud, plays a pivotal role in the deal. Originally developed by Microsoft, this networking software targets industry standards for advanced scalability across varying hardware vendors. Here's why it matters:

• Flexibility for Hyperscalers: Hyperscalers like Microsoft utilize hundreds of thousands of network devices. SONiC standardizes operations, allowing them to mix and match hardware, including Nokia routers, seamlessly.
• Focus on Customization: Operators can tweak SONiC to meet very specific workload demands, a hallmark principle of modern software-defined networking (SDN).

Nokia has been heavily investing in enhancing SONiC's capabilities, including chassis-based support for handling high-capacity roles in massive installations. This ensures Azure remains at the forefront of high-speed data processing for years to come.

Broader Industry Implications​

This deal spotlights multiple vital trends shaping the tech landscape:

1. Cloud Network Upgrades: As more enterprises migrate to cloud-native infrastructures, providers like Microsoft Azure need to handle unprecedented levels of network traffic. This is where 400GE solutions like Nokia's become indispensable.
2. Global Footprint Race: By expanding to over 30 countries through Nokia’s solutions, Microsoft Azure sends a clear message—it aims to become the default cloud platform by being everywhere users need it.
3. Strengthened Vendor Partnerships: For Nokia, this partnership reinforces its reputation as a Tier 1 supplier to hyperscalers like Amazon, Google, and Microsoft. Expect Nokia to use this victory as leverage in its marketing strategy.
4. Sustainability Through Innovation: It's not just about speed. Energy-efficient technologies, such as Nokia’s routers, are a key requirement as tech giants aim to meet ESG (Environmental, Social, Governance) goals.

The Strategic Win for Nokia​

This deal ticks multiple boxes for Nokia. It affirms their five-year strong focus on hyperscaler requirements—a market segment dominated by very few players. Beyond this:

• Revenue Generation: A five-year deal with Microsoft is no small potato. Nokia secures recurring revenue streams while demonstrating its unmatched expertise in high-capacity networks.
• Market Differentiation: Solid commitment to software innovations like SONiC sets Nokia apart from competitors primarily focused on hardware.

In the words of Vach Kompella, SVP and GM of Nokia IP Networks, "This win affirms Nokia's commitment to being a strategic supplier for tier one hyperscaler companies..." Essentially, Nokia has entered the tech major leagues, solidifying its presence in the hyperscale data centre space.

What the Future Holds for Azure and Nokia Partnerships​

Looking ahead, expansion agreements like these will be pivotal in shaping next-gen applications powered by cloud services. Consider innovations requiring massive bandwidth such as:

• Generative AI Workloads: Training models like ChatGPT or DALL-E can require entire data centres to work in unison.
• Edge Computing Expansion: Applications like autonomous vehicles require real-time processing—something this network upgrade can technically support.
• Greenfield Innovations: With Nokia injecting its high-performance routing into potentially untouched regions, businesses in developing markets will gain direct Azure access.

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Summing It Up​

This deal isn’t just a contract; it’s an echo of tech evolution. Nokia has set the stage for a pivotal upgrade to Microsoft's Azure ecosystem, marrying hardware and open-source flexibility via SONiC. For Microsoft users, the benefits mean seamless scaling and future-proofing as we inch closer to a world where AI, IoT, and massive data workloads are the norm rather than exceptions.
But here’s the winning headline: Nokia isn't merely providing routers—they’re defining the backbone of tomorrow's cloud computing superhighways. It’s like going from dirt roads to six-lane highways, just optimized for zettabytes instead of vehicles.
Azure users and network enthusiasts: strap in, because we're heading into uncharted cloud-scaling territory!

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Source: iTWire Nokia wins five-year deal to supply Azure data centre networks