Through the partnership, the companies will collaborate to transform Vodafone’s customer experience using Microsoft’s generative AI, hyperscale Vodafone’s leading managed 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 and Microsoft Corp. on Tuesday announced a new, far-reaching 10-year strategic partnership that leverages their respective strengths in offering scaled digital platforms to more than 300 million businesses, public sector organizations, and consumers across Europe and Africa.

Vodafone will invest $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.

As well as replacing physical datacenters with Azure, Microsoft intends to invest in Vodafone's managed IoT connectivity platform, which will become a separate, standalone business by April 2024. The system connects 175 million devices and platforms worldwide and will become part of the Azure ecosystem.