Vodafone and IBM have both agreed to enter into a joint venture that aims to provide businesses with support for linking up cloud systems. It can support next-generation technology such as 5G networks or machine learning.
Today, the firms said that Vodafone will be paying IBM $550 million (£423.4 million) under an eight-year contract as part of the said deal. It will enable it to offer tools such as artificial intelligence to its networked businesses.
Two global executives will be relocated to London to lead the said venture, where it will be headquartered. It is anticipated to become operational in the first half of the year.
An employee representative of Vodafone is set to be elected from the start of next month and consultation with the telco’s HR, management, and senior folk at IBM will be taking place in between then and May, when the new service is set to begin.
The commercial agreement will see some transferred employees, including some people in operations, technical sales consultants, and delivery, to continue to deliver support to Vodafone.
It is expected that the joint venture will make it easier for most businesses to link up their separate cloud systems, without the need to redesign their network from start to finish completely. Vodafone said that an estimated 70 percent of the organisations of the world use up to 15 different cloud systems at any one time.
Nick Read, the Chief Executive Officer of Vodafone, stated: “Vodafone has successfully established its cloud business to help our customers succeed in a digital world.”
He added: “This strategic venture with IBM allows us to focus on our strengths in fixed and mobile technologies, whilst leveraging IBM’s expertise in multi-cloud, 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.”