IBM Inks $550 million Managed Services Deal with Vodafone Business

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IBM and Vodafone Business announced a a new strategic commercial agreement where Vodafone Business customers will immediately have access to the full portfolio of IBM’s cloud offerings.

As part of the agreement, IBM will provide managed services to Vodafone Business’ cloud and hosting unit, in an eight-year engagement valued at approximately $550 million (€480 million). Customers will benefit from IBM’s optimisation, automation and cognitive capabilities which help them to run their business effectively in a cloud environment.

It will provide clients with the open, flexible technologies they need to integrate multiple clouds and prepare for the next wave of digital transformation enabled by AI, 5G, edge and Software Defined Networking (SDN). The new venture will co-develop new digital solutions, combining the strengths of Vodafone’s leadership in IoT, 5G and edge computing with IBM’s multicloud, industry expertise and professional services capabilities.

The convergence of multicloud and connectivity promises to speed decision-making, enhance automation and personalize experiences for end users in any location – even some of the most remote. For example, in the past, innovating on an oil rig would have been a challenge due to lack of connectivity and disparate IT systems. Today, thanks to edge computing and IoT technologies from Vodafone working with the latest AI and augmented reality applications from IBM, engineers will be able to pinpoint and resolve faults on equipment in minutes rather than hours, potentially saving millions in lost productivity.

Ginni Rometty, Chairman, President and CEO, IBM
IBM has built industry-leading hybrid cloud, AI and security capabilities underpinned by deep industry expertise. Together, IBM and Vodafone will use the power of the hybrid cloud to securely integrate critical business applications, driving business innovation – from agriculture to next-generation retail.

Nick Read, CEO, Vodafone
This strategic venture with IBM allows us to focus on our strengths in fixed and mobile technologies, whilst leveraging IBM’s expertise in multicloud, AI and services. Through this new venture we’ll accelerate our growth and deepen engagement with our customers while driving radical simplification and efficiency in our business.