AWS and Azure Partner on Automated Multicloud Interconnect to Eliminate Colocation Overheads

Microsoft and Amazon Web Services have rolled out Azure Multicloud Interconnect and AWS Interconnect – multicloud into public preview, establishing native, automated cross-cloud connectivity between AWS and Microsoft Azure. Built upon open API specifications for network interoperability, the managed service delivers dedicated, high-speed private connections reaching up to 100 Gbps. The underlying architecture features out-of-the-box MACsec encryption, built-in quad-redundancy across distinct physical facilities, and native integration with services like Azure Private Link and AWS VPCs across initial regions in the United States, Europe, and Asia Pacific. This development addresses one of the most persistent operational bottlenecks in modern enterprise infrastructure: cross-cloud transit provisioning. Historically, interconnecting AWS and Azure forced network teams to manually negotiate third-party colocation facilities, provision physical circuits, orchestrate BGP routing tables, and maintain disjointed operational tooling. By converting complex physical and routing configuration into a software-defined, API-driven action, network engineers can deploy and reconfigure enterprise-grade cross-cloud backbones on demand directly from standard CLIs, web consoles, or Infrastructure-as-Code workflows. The launch marks a turning point in hyperscaler interoperability and software-defined WAN management. As enterprise AI workloads expand, data residency mandates tighten, and distributed architectures proliferate, training and inference pipelines routinely span cloud boundaries. What was previously treated by major providers as a niche edge case has become an architectural baseline. Standardizing on open networking APIs to automate peering across AWS, Azure, Google Cloud, and Oracle Cloud Infrastructure transforms multi-cloud networking from a bespoke systems integration burden into a programmable cloud primitive. In practice, NetOps and platform teams should immediately evaluate their existing colocation cross-connect contracts and DIY VPN overlays against managed interconnect options. While the automation significantly lowers Day-1 provisioning overhead and operational risk, teams must carefully audit egress pricing structures, latency baselines for synchronous workloads, and regional availability constraints. Adopting declarative network orchestration that interfaces directly with these cloud interconnect APIs will allow organizations to treat multi-cloud transit as dynamic code rather than static hardware infrastructure.