Vodafone and Microsoft Reveal 10-year Deal to Bolster Business Opportunities

Vodafone and Microsoft have announced a 10-year contract, with the goal of enhancing business opportunities across Europe and Africa.
CEOs of Vodafone and MicrosoftVodafone and Microsoft will be working on elevating Vodafone’s customer experience through the integration of Microsoft’s AI technology.

The initiatives under consideration encompass the expansion of Vodafone’s managed Internet of Things (IoT) connectivity platform, the creation of innovative digital and financial services tailored specifically for small and medium-sized enterprises (SMEs) across Europe and Africa, and a comprehensive overhaul of the global data center cloud strategy.

As part of this strategic alliance, Vodafone commits an investment of $1.5 billion over the next decade towards the development of cloud and customer-focused AI services in partnership with Microsoft. In return, Microsoft will capitalize on Vodafone’s fixed and mobile connectivity services to fortify its market position.

Microsoft will make an undisclosed investment in Vodafone’s managed IoT connectivity platform as part of the deal. Vodafone’s managed IoT business, which is connecting 175 million devices globally, will become an independent, standalone business by April 2024, a news statement from Microsoft said. It will use Azure Cloud.

Vodafone Group CEO Margherita Della Valle underscored the significance of this commitment to the digital evolution of Europe and Africa, with a particular emphasis on its impact on small and medium-sized businesses.

Microsoft’s Chairman and CEO, Satya Nadella, echoed these sentiments, emphasizing the potential of this novel AI technology to unlock opportunities for organizations globally.

Vodafone will be using Microsoft Azure OpenAI to augment customer satisfaction through real-time, proactive, and hyper-personalized experiences across all Vodafone customer touchpoints.

Vodafone aims at expanding M-Pesa, Africa’s premier financial technology platform, on Azure, coupled with the launch of a purpose-driven program aimed at enriching the lives of millions of consumers and SMEs across the continent.

Vodafone will be distributing Microsoft services, including Azure and security solutions. Vodafone’s strategy is to become Europe’s foremost platform for businesses.

Vodafone is also aiming at modernization its data centers on Microsoft Azure, resulting in improved responsiveness to customers, simplified operations, reduced costs, and alignment with sustainable business strategies.