Vodafone and Microsoft have launched a new, comprehensive 10-year strategic agreement that takes use of one other’s advantages in providing scalable digital platforms to over 300 million customers, enterprises, and public sector entities in Europe and Africa.
Through the partnership, the companies will work together to develop new digital and financial services for businesses, particularly SMEs across Europe and Africa, and rethink its global data center cloud strategy. They will also work together to transform Vodafone's customer experience using Microsoft’s generative AI and hyperscale Vodafone's leading managed IoT connectivity platform.
Over the next ten years, Vodafone plans to spend $1.5 billion in cloud and customer-focused AI services created in partnership with Microsoft. Microsoft will also make advantage of Vodafone’s mobile and fixed connection offerings.
Additionally, Microsoft plans to invest in Vodafone's managed IoT connection platform, which by April 2024 will be a stand-alone company. In addition to spurring development in apps and broadening the platform to link additional machines, cars, and gadgets, the new business will draw in new partners and clients.
With the use of cutting-edge generative AI technology, the new alliance will provide digital services that offer a highly customized and unique client experience across a variety of channels. They will be based on Vodafone's well-established framework for responsible AI, which includes impartial and moral privacy and security regulations.
“Today, Vodafone has made a bold commitment to the digital future of Europe and Africa,” said Margherita Della Valle, Vodafone Group Chief Executive. “This unique strategic partnership with Microsoft will accelerate the digital transformation of our business customers, particularly small and medium-sized companies, and step up the quality of customer experience for consumers.”
“This new generation of AI will unlock massive new opportunities for every organization and every industry around the world,” said Satya Nadella, Chairman and CEO, Microsoft. “We are delighted that together with Vodafone we will apply the latest cloud and AI technology to enhance the customer experience of hundreds of millions of people and businesses across Africa and Europe, build new products and services, and accelerate the company’s transition to the cloud.”
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“Vodafone's partnership with Microsoft marks a pivotal moment for the digital evolution in Europe and Africa, accelerating business transformation and enhancing client experiences with innovative AI and cloud technologies,” shared Margherita Della Valle and Satya Nadella
Five Key Areas of Collaboration
Vodafone and Microsoft have identified five key areas of collaboration:
- Generative AI - Across all Vodafone client touchpoints, including its digital assistant TOBi (available in 13 countries), the businesses will use the potential of Microsoft Azure OpenAI to create frictionless, real-time, proactive, and hyperpersonalized experiences in an effort to boost customer happiness. Employees at Vodafone will also be able to use Microsoft Copilot's AI capabilities to change working procedures, increase output, and enhance digital efficiency.
- Scaling IoT - Microsoft plans to invest in Vodafone's new, independent global connectivity infrastructure for the Internet of Things (IoT), which links 175 million devices and platforms globally. Vodafone also intends to join the Azure ecosystem, opening up the IoT platform via open APIs to a large developer and third-party community.
- Africa digital acceleration - Microsoft plans to host M-Pesa on Azure and facilitate the release of new cloud-native apps in order to assist the platform - which is now the biggest financial technology platform in Africa - scale even further. A purpose-driven initiative being launched by the corporations aims to improve the lives of one million small and medium-sized enterprises (SMEs) and 100 million customers across Africa. The objective is to provide digital services to the disadvantaged SME market and improve youth outreach, skill development, and digital literacy initiatives. Through the creation of a network of credentialed developers, the collaboration seeks to promote innovation in financial services.
- Enterprise growth - As part of its plan to become Europe’s top business platform, Vodafone will increase its dedication to delivering Microsoft services, such as Microsoft Teams Phone Mobile, security solutions, and Microsoft Azure. In addition to supporting the projected 24 million SMEs in Europe with a managed platform that expands with their company, this allows business clients to quickly adopt and operate Microsoft's cloud-based services.
- Cloud transformation - Vodafone plans to modernize its data centers on Microsoft Azure in order to expedite its cloud shift. This will simplify and lower the operating expenses of its IT infrastructure while enhancing its responsiveness to clients. Vodafone will be able to replace several physical data centers with virtual ones around Europe as a consequence, streamlining and cutting the expenses associated with running its IT estate. It will also be able to meet its energy needs and advance its sustainable business plan.
