Vodafone, Microsoft sign 10-year strategic partnership on AI
Vodafone and Microsoft have officially entered into a strategic 10-year partnership aimed at seamlessly integrating generative artificial intelligence (AI), cutting-edge digital solutions, robust enterprise services, and advanced cloud offerings.
This collaborative effort is set to impact over 300 million businesses and consumers, spanning Vodafone’s extensive markets across Europe and Africa.
Allocating a substantial $1.5 billion investment, Vodafone is committed to the development of customer-centric artificial intelligence, leveraging the advanced capabilities of Microsoft’s Azure OpenAI and Copilot technologies.
In a strategic move, the company plans to transition from traditional physical data centers to the cost-effective and scalable Azure cloud services, signalling a forward-looking approach to technology infrastructure.
As part of the collaboration, Microsoft will in turn become an equity investor in Vodafone’s forthcoming standalone business, the managed Internet of Things (IoT) platform, anticipated to launch by April 2024.
Additionally, Microsoft will actively contribute to the expansion of Vodafone’s mobile financial platform in the African market, reinforcing the strategic partnership’s commitment to fostering innovation and growth across diverse technological domains.
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Vodafone’s Chief Financial Officer Luka Mucic said Microsoft’s leadership in AI, underpinned by its OpenAI partnership, would transform the telco’s customer services.
“That’s the part that is really going to catch each and every one of our customers,” he said on Tuesday, adding that a Microsoft AI-underpinned TOBi chatbot would provide more consistent and intelligent responses to queries.
Microsoft’s Chief Commercial Officer Judson Althoff said Vodafone’s strength in IoT and financial services were strategically important.
“The IoT assets are critical in helping us address the sustainability needs of so many of our customers in hard-to-abate sectors,” Althoff said.
Microsoft deploys “digital twins” to model manufacturing environments so that process improvements can be tested in the cloud.
“Vodafone’s IoT stack allows us to go into those environments, model the environment, create large-scale data stores, and use AI to help customers meet their sustainability goals.
“We are excited to bring generative AI capabilities to help customers make more intelligent financial decisions,” Althoff added.
Vodafone’s M-PESA mobile money platform, operational in Kenya, Tanzania, South Africa, and various other African nations, aligns seamlessly with Microsoft’s shared objectives in the region, including the mutual commitment to fostering digital literacy.
