Vodafone signs $1.5 billion Microsoft deal for AI, cloud and IoT
Vodafone and Microsoft have lifted the lid on a new ten-year strategic partnership, as they jointly aim to deliver scaled digital platforms to more than 300 million businesses, public sector organizations and consumers across Europe and Africa.
As part of the deal, Vodafone has committed to investing $1.5 billion in cloud and customer-facing AI services with Microsoft over the next ten years.
The two-way relationship also means that Microsoft “plans” to invest an undisclosed amount in Vodafone’s IoT connectivity platform, which will become its own standalone business by April.
Microsoft and Vodafone want to accelerate digital transformation
Margherita Della Valle, CEO of Vodafone Group, said: “This unique strategic partnership with Microsoft will accelerate the digital transformation of our enterprise customers, especially small and medium-sized businesses, and improve the quality of the customer experience for consumers.”
The alliance aims to overhaul Vodafone’s customer experience, develop digital and financial services for businesses and renew the company’s global data center cloud strategy.
Vodafone also hopes to expand its platform, eventually allowing more devices, vehicles and machines to be connected.
Microsoft CEO Satya Nadella added: “This next generation of AI will unlock vast new opportunities for every organization and industry around the world.”
The companies have identified five key areas of collaboration, starting with Vodafone’s digital assistant, TOBi, which will be enhanced by generative AI powered by Microsoft Azure OpenAI.
Closer connections will also be forged between Vodafone and Microsoft in the field of IoT, and Vodafone has shared plans to modernize its data centers on Microsoft Azure.
Furthermore, the two tech titans hope to help SMEs using their services grow, with a particular focus on the African continent where digital literacy, upskilling and youth outreach programs will be deployed.