Vodafone and Microsoft team up on billion-dollar deal for cloud, AI and IoT

Digital transformation
(Image credit: Wichy / Shutterstock)

Vodafone and Microsoft have announced a new 10-year strategic partnership that will see them jointly aim to offer scaled digital platforms to over 300 million businesses, public sector organizations, and consumers across Europe and Africa.

As part of the deal, Vodafone has committed to a $1.5 billion investment in cloud and customer-focused AI services over the next decade with Microsoft.

The two-way relationship also has Microsoft “intend[ing]” to invest an undisclosed sum into Vodafone’s IoT connectivity platform, which is set to become its own standalone business by April.

Microsoft and Vodafone want to accelerate digital transformation

Margherita Della Valle, Vodafone Group 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.”

The alliance aims to overhaul Vodafone’s customer experience, develop digital and financial services for businesses, and revamp the company’s global data center cloud strategy.

Vodafone also hopes to expand its platform, ultimately connecting more devices, vehicles, and machines.

Microsoft CEO Satya Nadella added: “This new generation of AI will unlock massive new opportunities for every organization and every industry around the world.”

Five key areas of collaboration have been identified by the companies, beginning with Vodafone’s digital assistant, TOBi, which is set to be supercharged by generative AI powered by Microsoft Azure OpenAI.

Tighter connections will also be forged between Vodafone and Microsoft in terms of IoT, and Vodafone has shared plans to modernize its data centers on Microsoft Azure.

Moreover, the two tech titans hope to help SMEs that use their services to grow, with a particular focus on the African continent where digital literacy, upskilling, and youth outreach programs are set to be deployed.

More from TechRadar Pro

TOPICS
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

Read more
Microsoft's $3bn investment in India
Microsoft reveals billion-dollar cloud and AI investment plan in India
Microsoft
Microsoft reveals surprise plan to spend $80bn on AI data centers
Microsoft UK CEO Darren Hardman AI Tour London 2025
Microsoft - UK can help drive the global AI future, but only with the proper buy-in
Oracle
Oracle unveils multi-billion dollar investment in UK cloud and AI
Microsoft + Blackberry
BlackBerry and Microsoft are collaborating on something big, but it has nothing to do with smartphones
Microsoft
Microsoft is spending $700 million to ramp up security and computing power in Poland
Latest in Pro
Epson EcoTank ET-4850 next to a TechRadar badge that reads Big Savings
I searched for the best printer deal you won't find in the Amazon Spring Sale
Microsoft Copiot Studio deep reasoning and agent flows
Microsoft reveals OpenAI-powered Copilot AI agents to bosot your work research and data analysis
Group of people meeting
Inflexible work policies are pushing tech workers to quit
Data leak
Top home hardware firm data leak could see millions of customers affected
Representational image depecting cybersecurity protection
Third-party security issues could be the biggest threat facing your business
An image of network security icons for a network encircling a digital blue earth.
Why multi-CDNs are going to shake up 2025
Latest in News
An image of Pro-Ject's Flatten it closed and opened
Pro-Ject’s new vinyl flattener will fix any warped LPs you inadvertently buy on Record Store Day
EA Sports F1 25 promotional image featuring drivers Oscar Piastri, Carlos Sainz and Oliver Bearman.
F1 25 has been officially announced, with this year's entry marking a return for Braking Point and a 'significant overhaul' for My Team mode
Garmin clippd integration
Garmin's golf watches just got a big software integration upgrade to help you improve your game
Robert Downey Jr reveals himself as Doctor Doom to a delighted crowd at San Diego Comic-Con 2024
Marvel is currently making a major announcement about Avengers: Doomsday's cast on YouTube, and I think it's going to be a long-winded reveal
Samsung QN90F on yellow background
Samsung announces US prices for its 2025 mini-LED TV lineup, and it’s good and bad news
Nintendo Switch Lite
Forget the Nintendo Switch 2, the original Switch is getting one last hurrah in a surprise Nintendo Direct tomorrow