Microsoft and AWS Unveil Jointly Managed Multicloud Interconnect

Microsoft and AWS have launched a jointly managed multicloud interconnect that provides private, high-speed connectivity between Azure and AWS. The service allows customers to treat cross-cloud links as native cloud resources rather than bespoke networking projects.

The interconnect is built on familiar foundations, using Azure ExpressRoute and AWS Direct Connect, but with a key difference: the physical and logical connectivity is provider-managed rather than customer-configured through colocation cross-connects. The service currently offers up to 1Gbps in public preview across four region pairs.

The interconnect has significant implications for telcos, as it shifts traditional private line revenues under hyperscaler control. However, telcos can reposition themselves by acting as strategic integrators or physical hosts for the interconnects.