Berkshire, UK: Vodafone has unveiled a monumental 10-year, $1.6 billion deal with Microsoft, ushering in AI, digital, enterprise, and cloud services for more than 300 million businesses and consumers across Europe and Africa. The telecom giant is set to invest $1.5 billion in customer-centric AI, leveraging Microsoft’s Azure OpenAI and Copilot technologies. As part of its forward-looking strategy, Vodafone plans to transition from physical data centers to cost-effective and scalable Azure cloud services.
In reciprocity, Microsoft takes on the role of an equity investor in Vodafone’s standalone business, the managed IoT platform, scheduled for autonomy by April 2024. Microsoft CEO Satya Nadella expressed enthusiasm, stating, “We’re delighted to partner with Vodafone Group to apply the latest cloud and AI technology to enhance the customer experience for hundreds of millions of people and businesses across Africa and Europe.”
Vodafone’s Chief Financial Officer, Luka Mucic, emphasized the transformative impact of Microsoft’s leadership in AI, particularly through the OpenAI partnership. He anticipates a revolution in customer services, with the implementation of a Microsoft AI-powered TOBi chatbot, promising more consistent and intelligent responses to user queries.
Microsoft’s Chief Commercial Officer, Judson Althoff, highlighted the strategic importance of Vodafone’s strengths in IoT and financial services. He remarked, “The IoT assets are critical in helping us address the sustainability needs of so many of our customers in hard-to-abate sectors.”
