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Vodafone’s cloud services deal with IBM should generate revenue but limits Vodafone’s future options

Tom Rebbeck Research Director, Operator business services and IoT
Terry van Staden Analyst, Research

"Vodafone is hoping that it can win more cloud business with IBM than it could have done alone, without the risk or cost of building or buying multi-cloud capabilities."

Vodafone announced on 17 January that IBM would supply it with multi-cloud services as part of an 8-year deal worth USD550 million. The deal illustrates the clear distinction between Vodafone’s strategy for cloud services and that of many of its competitors. Most incumbents are trying to manage hybrid solutions themselves, but Vodafone is taking the simpler approach of outsourcing to IBM.