TelcoDR continued efforts to push use of public cloud by operators, unveiling a $1 billion warchest to fund M&A and product development alongside announcing an acquisition of assets from software company ZephyrTel.

The company detailed in a statement the former ZephyrTel products would be operated by newly-formed subsidiary Skyvera, which will also house buys made from its so-called $1 billion Telco Transformation Fund.

TelcoDR noted Skyvera would “provide communication service provider customers with the software offerings they need on their public cloud journey”. The company has not disclosed the backers for its fund.

Businesses acquired and placed under the Skyvera unit will be given ongoing support in product innovation with a focus on those employing public cloud-native software.

The move follows TelcoDR’s $100 million investment in charging startup Totogi earlier this year, also financed by the fund.

Vocal public cloud supporter and TelcoDR founder Danielle Royston said: “With my Telco Transformation Fund, I’m building a library of software products purpose-built for the public cloud.”

Skyvera CEO Matt Taylor added: “There’s now a growing appreciation of the power of the public cloud, but many CSPs lack the skills and support needed to achieve their transformation goals. Skyvera will provide this expertise, so telcos can maximise their returns from the public cloud.”