Vodafone and Microsoft Corp. announced on Tuesday a significant 10-year strategic partnership aimed at utilizing their combined expertise to offer advanced digital platforms to over 300 million entities, including businesses, public sector organizations, and consumers across Europe and Africa.

This collaboration will focus on enhancing Vodafone’s customer experiences through Microsoft’s state-of-the-art generative AI technology and expanding Vodafone’s managed IoT (Internet of Things) connectivity platform. Additionally, the partnership will drive the development of new digital and financial services targeted primarily at small and medium-sized enterprises (SMEs) in Europe and Africa. A major part of this initiative includes a comprehensive revamp of Vodafone’s global data center and cloud strategy.

Vodafone plans to invest a substantial $1.5 billion over the next decade into cloud services and AI-driven customer solutions developed alongside Microsoft. In return, Microsoft will employ Vodafone’s extensive fixed and mobile connectivity services.

A significant development in this partnership is Microsoft’s investment in Vodafone’s managed IoT connectivity platform. This platform, set to become an independent business by April 2024, aims to draw in new partners and customers, thereby fueling growth in various applications and broadening its scope to include a wider range of connected devices, vehicles, and machinery.

The digital services emanating from this collaboration will be powered by cutting-edge generative AI technology, ensuring highly personalized and distinct customer interactions across various channels. These services will be developed within the framework of unbiased, ethical privacy, and security policies, aligning with Vodafone’s commitment to responsible AI.

Margherita Della Valle, Vodafone Group’s Chief Executive, emphasized the partnership’s significance in propelling the digital future of Europe and Africa, particularly focusing on enhancing the digital capabilities of SMEs and improving consumer experiences.

Satya Nadella, Chairman and CEO of Microsoft, highlighted the transformative potential of this new generation of AI, envisaging vast opportunities for organizations and industries globally. He expressed enthusiasm about the partnership’s role in advancing customer experiences and spurring cloud-based innovations across Africa and Europe.

The partnership has outlined five key areas of collaboration:

Generative AI: Leveraging Microsoft Azure OpenAI to revolutionize customer experiences at all Vodafone touchpoints and enhancing employee productivity and digital efficiency through Microsoft Copilot.

Scaling IoT: Microsoft’s investment in Vodafone’s new global IoT-managed connectivity platform, connecting 175 million devices, and integrating it within the Azure ecosystem.

Africa Digital Acceleration: Microsoft’s support in expanding M-Pesa, Africa’s largest fintech platform, and implementing a program to improve digital literacy and services for SMEs in Africa.

Enterprise Growth: Vodafone’s commitment to distributing Microsoft services, including Azure and Teams Phone Mobile, to support the European business sector, especially SMEs.

Also Read | Microsoft launches Copilot Pro for enhanced AI features in Microsoft 365 apps

Cloud Transformation: Vodafone’s initiative to modernize its data centers using Microsoft Azure, enhancing operational efficiency and contributing to its sustainable business strategy.

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