Volkswagen picks Microsoft Azure for its automotive cloud and connected car services

Microsoft and Volkswagen have formed an agreement to make use of the software giant’s Azure cloud technology in order to connect the car manufacturer’s entire fleet as part of its digital transformation push. That means Volkswagen's digital services and mobility offerings in the future will be based on Azure.

Volkswagen announced that new partnership on Friday and said it will work with Microsoft to develop what it calls the Volkswagen Automotive Cloud meant to help provide digital and mobility services across its fleet. Under the alliance, the companies intend to have more than five million new Volkswagen-branded vehicles per year connected through Azure and the internet of things by 2020.

Satya Nadella, CEO of Microsoft, said:

Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers. 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.

As part of the agreement, Volkswagen plans to open an automotive cloud development office in North America near Redmond, where Microsoft is headquartered. The software giant will assist Volkswagen in many aspects of its upcoming cloud development center including hiring, human resources management, and consulting services. The office is expected to employ nearly 300 engineers in the near future.

The partnership between Microsoft and Volkswagen highlights a growing interest among automakers to invest in connected vehicles in collaboration with consumer technology companies.

Source and image: Volkswagen

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