Telecommunications giant Vodafone and tech leader Microsoft have announced a landmark 10-year strategic partnership valued at $1.5 billion to provide cloud and security solutions across Europe.
Under the agreement, Vodafone will shutter its own data centers in Europe and migrate its entire IT infrastructure to Microsoft Azure, Microsoft’s public cloud platform. This move marks a major shift for Vodafone, which currently operates over 50 data centers across Europe.
By shutting down its data centers, Vodafone aims to reduce costs and accelerate its digital transformation. The company will gain access to Microsoft’s cloud computing capabilities, AI tools, and security services.
For Microsoft, the deal represents a major expansion of its cloud business in Europe. The company will become Vodafone’s preferred cloud provider in the region and co-develop new products and services catering to the European market.
“Cloud is a core component of our growth and digital transformation strategy,” said Johan Wibergh, Vodafone’s Chief Technology Officer. “This partnership with Microsoft supports our cloud-first approach and will enable us to innovate, scale and serve our customers and businesses better.”
Analysts say the agreement highlights the growing trend of telecom providers partnering with hyperscale cloud providers like Microsoft due to their vast economies of scale and technical expertise. The deal gives Vodafone access to enterprise-grade cloud services as it transitions away from legacy infrastructure.
The migration of Vodafone’s IT infrastructure is expected to take several years. The companies did not provide details on which Vodafone data centers will be decommissioned or potential job impacts.
