Microsoft’s investment in Vodafone IoT is a surprise given Microsoft’s other priorities

22 January 2024 | Research

Tom Rebbeck

Article | PDF (2 pages) | IoT Services

"Microsoft looks like a somewhat unwilling investor in Vodafone’s IoT unit. Both parties will want to act to change that impression."


Vodafone announced that Microsoft “intends to invest in Vodafone’s managed IoT connectivity platform, which will become a separate, standalone business by April 2024”, on 16 January 2024.

The deal is significant for several reasons – it is the first announced external investor in Vodafone’s new IoT business (first announced in mid-2022 and covered in our previous article). The announcement seems broadly positive for Vodafone, but it is a surprise that raises many questions. The impression is that Microsoft is a somewhat reluctant investor in Vodafone’s IoT unit; this is probably something both parties will want to change.


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Tom Rebbeck

Partner, expert in TMT consumer and business services