Microsoft and AWS launch a managed multicloud interconnect

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Published: 2026-09-04T19:05:14.208Z • Permanent link

Microsoft and Amazon Web Services (AWS) have made a significant move into the world of multicloud connectivity, announcing a managed interconnect service that enables seamless communication between multiple cloud providers. The launch marks a major development in the ongoing quest for greater interoperability and flexibility in cloud computing. Microsoft's Cloud Infrastructure Group, led by Tom Keane, has been at the forefront of this effort, driving innovation in areas such as network virtualization and cloud services.

The new managed multicloud interconnect is set to be a major game-changer for organizations that rely on multiple cloud services. By providing a standardized interface for cloud-to-cloud communication, Microsoft and AWS aim to simplify the complex process of connecting disparate cloud environments. The service will be built on the principles of Microsoft's Azure networking and AWS's VPC, ensuring that customers can easily establish and manage their own cloud connections. According to a statement from Keane, "This new managed multicloud interconnect service will provide our customers with greater flexibility and choice when it comes to their cloud infrastructure.

Key to the success of this new service is the partnership between Microsoft and AWS, two of the world's leading cloud providers. The collaboration reflects the growing trend towards multicloud adoption, as organizations seek to leverage the strengths of multiple cloud services to meet their evolving needs. With this new managed multicloud interconnect, Microsoft and AWS are poised to capture a significant share of the burgeoning multicloud market, which is expected to reach $13.6 billion by 2025.

The launch of the managed multicloud interconnect has significant implications for the Telecom & Satellite Networks domain. For telecommunications companies, the ability to connect disparate cloud services will enable them to improve the efficiency and scalability of their networks. Research communities will also benefit from the increased flexibility and choice provided by the new service, allowing them to explore new use cases and applications that were previously limited by cloud interoperability. In terms of market impact, the managed multicloud interconnect is expected to drive growth in the multicloud market, with major players such as AT&T and Verizon already expressing interest in the service.

The managed multicloud interconnect will also have a profound impact on the policy environment surrounding cloud computing. As more organizations adopt multicloud strategies, governments and regulatory bodies will need to adapt their frameworks to address the emerging needs of the cloud ecosystem. The launch of this new service highlights the need for greater collaboration and standardization between cloud providers, and underscores the importance of regulatory bodies in promoting innovation and competition in the cloud market.

The managed multicloud interconnect is part of a larger trend towards greater cloud interoperability, driven by the need for organizations to adopt more flexible and scalable cloud strategies. This trend is closely tied to the ongoing development of cloud networking standards, such as the Open Compute Project's (OCP) Cloud-First Architecture. The OCP's work has helped to drive the adoption of standardized cloud networking components, which will play a critical role in enabling the seamless communication between multiple cloud providers.