Vodafone Group PLC (LSE:VOD) and Microsoft Corporation (NASDAQ:MSFT) on Tuesday announced a new, 10-year strategic partnership offering scaled digital platforms to more than 300 million businesses, public sector organisations, and consumers across Europe and Africa.
Through the partnership, the companies will use Microsoft's generative AI to scale Vodafone's managed Internet of Things (IoT) connectivity platform, develop new digital and financial services for businesses, particularly SMEs across Europe and Africa, and overhaul its global data centre cloud strategy.
Vodafone will invest US$1.5 billion over the next 10 years in cloud and customer-focused AI services developed in conjunction with Microsoft.
Additionally, Microsoft will use Vodafone's fixed and mobile connectivity services.
The companies have identified five key areas of collaboration: generative AI, scaling IoT, Africa digital acceleration, enterprise growth and cloud transformation.
Microsoft also intends to invest in Vodafone's managed IoT connectivity platform, which will become a separate, standalone business by April 2024.
Margherita Della Valle, Vodafone's chief executive, said: "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."