Swindon & Wiltshire News
Vodafone signs $1.5 billion deal with Microsoft for AI, cloud, and IoT services
Communications giant Vodafone has entered a 10-year, $1.5 billion partnership with Microsoft to bring generative AI, digital, enterprise and cloud services to more than 300 million businesses, public sector organisations and private consumers.
The Newbury-headquartered firm said it will invest in customer-focused AI developed with Microsoft’s Azure OpenAI and Copilot technologies and will replace physical data centres with cheaper and scalable Azure cloud services.
In turn, Reading-based Microsoft will become an equity investor in Vodafone’s managed Internet of Things platform when it is spun out as a standalone business by April.
The new company will attract new partners and customers, driving growth in applications and expanding the platform to connect more devices, vehicles, and machines.
The digital services generated by the new partnership will use the latest generative AI technology to provide a highly personalised and differentiated customer experience across multiple channels. They will be built on unbiased and ethical privacy and security policies under Vodafone’s established framework for responsible AI.
Margherita Della Valle, Vodafone Group chief executive, said: “Today, Vodafone has made a bold commitment to the digital future of Europe and Africa. 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 organisation 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.”
