Microsoft and Vodafone Ink $1.5 Billion Deal: All You Need To Know

Telecom services provider Vodafone Inc. has entered into a 10-year agreement with Microsoft Corp. With this partnership, Vodafone will invest $1.5 billion in cloud and AI services developed in collaboration with the Redmond-based tech giant.

The telecom company would leverage Microsoft’s technologies across Europe and Africa in developing and enhancing its customer-focused services in AI, digital payments and IoT sectors. Microsoft will utilize Vodafone’s connectivity services (mobile and fixed).

The companies have outlined five areas where they’ll collaborate over the next 10 years, which we will go through one by one.

Vodafone To Employ Microsoft’s Gen AI For Customer-Focused Services

Vodafone will use Microsoft Azure OpenAI tech to to enhance its customer-focused services across the world. Vodafone’s digital assistant TOBi will also get an OpenAI upgrade in 13 nations. The telecom services giant will train its employees on Microsoft’s Copilot AI tool.

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Vodafone To Scale Its IoT Business

With the 10-year agreement, Microsoft will invest in Vodafone’s standalone Internet of Things (IoT) platform which, as per Vodafone, “connects 175 million devices and platforms” globally.

Microsoft will make Vodafone a part of its Azure ecosystem with the aim of increasing the reach of Vodafone’s IoT platform to its “vast developer and third-party community using open APIs.”

Expansion of M-Pesa Across Africa

With Microsoft’s help, Vodafone plans to scale M-Pesa–its financial technology platform– in Africa “by housing it on Azure and enabling the launch of new cloud-native applications.”

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With the $1.5 billion deal, Microsoft and Vodafone are looking to expand their digital services to 1 million small and medium-sized enterprises (SMEs). Vodafone will utilise Microsoft’s services for SMEs to scale up its enterprise business.

The companies also intend to build a community of certified developers in Africa. They plan to launch a program to speed up digital literacy in the continent. Youth outreach programs are also planned.

Vodafone To Distribute Microsoft Services In Europe

As part of the $1.5 billion agreement, Vodafone will distribute Microsoft services like Azure, Microsoft Teams Phone Mobile, Microsoft’s security solutions, and other services in Europe. The telecom services giant thus aims to become “Europe’s leading platform for business.”

Cloud Migration of Data Centres in Europe

Vodafone will also try to replace its physical data centres across Europe with more cloud-based ones through Microsoft Azure platform. The company believes that data centre migration to the Cloud will “improve its responsiveness to customers,” and simplify and reduce operational costs of its IT estate. More virtual data centres will also help cut down on energy usage, said Vodafone.

• Winner of The 21st Century Emily Dickinson Award for his debut book ‘The Heart of Heartbeats’, Utkarsh found his calling to be a writer while studying engineering and has been writing professionally for over six years now. After completing… read more