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(Alliance News) - Vodafone Group PLC and Microsoft Corp on Tuesday announced a new strategic partnership focused on cloud strategy, digital services and generative artificial intelligence.
Vodafone said the "far-reaching" deal will leverage both firms' respective strengths in offering scaled digital platforms to over 300 million customers in Africa and Europe.
"Today, Vodafone has made a bold commitment to the digital future of Europe and Africa," said Vodafone Chief Executive Margherita Della Valle. "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."
Vodafone said it plans to invest USD1.5 billion over the next decade in developing cloud and customer-focused AI services with Microsoft, with Microsoft using Vodafone's fixed and mobile connectivity services.
Microsoft meanwhile will invest in Vodafone's managed Internet of Things connectivity platform, which Vodafone said will become a separate stand-alone business by April this year.
Additionally, the companies intend to use "the latest" generative AI to "provide a highly personalised and differentiated customer experience across multiple channels", using Microsoft Azure OpenAI across all Vodafone customer touchpoints.
Microsoft also intends to enhance "digital acceleration" in Africa servicing the "underserved" market of small and medium enterprises. It also plans to use Azure to host Vodafone's financial technology platform M-Pesa, to help launch new cloud-native applications and increase the plaform's scale.
Microsoft Chair & CEO Satya Nadella commented: "This new generation of AI will unlock massive new opportunities for every organisation and every industry around the world.
"We are delighted that together with Vodafone we will apply the latest cloud and AI technology to enhance the customer experience of hundreds of millions of people and businesses...build new products and services, and accelerate the company's transition to the cloud."
On Tuesday morning in London, Vodafone shares were up 0.5% at 67.46 pence. In New York, Microsoft closed 1.0% higher at USD388.47 on Friday, with US markets closed on Monday for Martin Luther King Jr Day.
By Emma Curzon, Alliance News reporter
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