Volkswagen and software giant Microsoft Corporation have entered into a strategic partnership and will collaborate to develop the 'Volkswagen Automotive Cloud'. This will be one of the largest dedicated automotive industry clouds for all future Volkswagen digital services and mobility offerings. With Microsoft, the company continues its digital transformation into a mobility provider with a fully connected vehicle fleet and the digital ecosystem "Volkswagen We".
From 2020, more than 5 million new Volkswagen-brand vehicles per year will be fully connected and will be part of the Internet of Things (IoT) in the cloud. Together, the two companies will develop the technological basis for a comprehensive industrial automotive cloud. In the future, all in-car services for vehicles of the Volkswagen brand as well as the Group-wide cloud-based platform will be built on Microsoft's Azure cloud platform and services as well as Azure IoT Edge.
Dr. Herbert Diess, CEO of Volkswagen AG said, "The strategic partnership with Microsoft will turbocharge our digital transformation. 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."
By building the Volkswagen Automotive Cloud, the company will be able to leverage consistent mobility services across its entire portfolio and to provide new services and solutions such as in-car consumer experiences, telematics, and securely connect data between the car and the cloud.
As part of the new entity, Volkswagen will establish a new automotive cloud development office in North America near Microsoft's headquarters. To help usher in a new wave of automotive transformation, Microsoft will provide hands-on support to Volkswagen as it ramps up its new automotive cloud development office, including resources to help drive hiring, human resources management and consulting services. The workforce is expected to grow to about 300 engineers in the near future.
In the long term, the solutions developed through the strategic partnership will be rolled out to other Volkswagen Group brands in all regions of the world, building the foundation for all customer-centric services of the brands. This includes the Volkswagen ID. electric family as well as conventionally-powered models. In the future, Volkswagen's fleet of cars will become mobile hubs linked by Microsoft Azure.
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."
