Volkswagen has forged a strategic partnership with Microsoft, as it continues to build its digital footprint. The German automaker wants to become a mobility provider with a fully connected fleet.
The two companies will work together to develop the ‘Volkswagen Automotive Cloud’, said to be one of the largest clouds in the industry. Based on Microsoft’s Azure platform, it will also support all future VW digital services and mobility offerings.
“The strategic partnership with Microsoft will turbocharge our digital transformation,” said VW CEO, Dr. Herbert Diess. “Volkswagen, as one of the world’s largest automakers, and Microsoft, with its unique technological expertise, are outstandingly well-matched. Together, we will play a key role in shaping the future of auto-mobility.”
The way of the future
Beyond the year 2020, more than 5 million new VW-brand vehicles per year will be fully connected as part of the cloud. Thus, the automaker will be able to optimize the interconnection of vehicle, cloud-based platform and customer-centric services for all of its brands, like the “Volkswagen We” ecosystem.
As part of this digital expansion, Volkswagen will also establish a new automotive cloud development office in North America, near Microsoft’s own headquarters. In turn, the latter will provide hands-on support and resources, while the workforce is expected to grow to roughly 300 engineers in the near future.
“Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers,” stated Microsoft CEO, Satya Nadella. “The world’s leading companies run on Azure, and we are thrilled that Volkswagen has chosen Microsoft. Together we will reimagine the driving experience for people everywhere.”
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