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Vodafone and Microsoft Forge $1.5B Digital Transformation Deal

 |  January 16, 2024

Vodafone has announced a decade-long partnership with Microsoft, aiming to revolutionize digital services across European and African markets for over 300 million businesses and consumers.

This strategic collaboration involves a $1.5 billion investment by Vodafone in customer-centric AI, utilizing Microsoft’s Azure OpenAI and Copilot technologies, reported Reuters.

The partnership extends beyond mere technology integration. Vodafone plans to replace traditional data centers with the cost-effective and scalable Azure cloud services, emphasizing efficiency and innovation. Microsoft reciprocates by becoming an equity investor in Vodafone’s standalone managed IoT (Internet of Things) platform, set to launch in April. Additionally, Microsoft will play a pivotal role in scaling Vodafone’s mobile financial platform in Africa.

Read more: UK’s Vodafone & Three To Merge, Creating Largest Mobile Operator

Margherita Della Valle, Vodafone’s Chief Executive, expressed confidence in the potential for digital transformation, particularly for small and medium-sized businesses. The collaboration aims to address a market valued at 140 billion euros, positioning Vodafone to accelerate its business customers’ journey into the digital realm.

Luka Mucic, Vodafone’s Chief Financial Officer, underscored Microsoft’s leadership in AI, emphasizing the transformative impact on customer services. He highlighted the deployment of a Microsoft AI-powered TOBi chatbot, designed to deliver more consistent and intelligent responses to customer queries.

As Vodafone navigates the path to profit growth under Della Valle’s leadership, this partnership with Microsoft marks a significant step toward realizing the ambitious vision of digitizing businesses and enhancing customer experiences in the rapidly evolving landscape of telecommunications.

Source: Reuters