Volkswagen and Microsoft announce strategic partnership
Volkswagen and Microsoft Corp. announced a strategic partnership to collaborate and develop the “Volkswagen Automotive Cloud,” an automotive industry cloud for all future Volkswagen digital services and mobility offerings.
“The strategic partnership with Microsoft will turbocharge our digital transformation,” said Dr. Herbert Diess, CEO of Volkswagen AG. “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.”
“Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers,” said Satya Nadella, CEO of Microsoft. “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.”
Volkswagen says that more than five million of its Volkswagen-brand vehicles per year will be fully connected and will be part of the Internet of Things (IoT) in the cloud. In the future, all in-car services for vehicles of the core Volkswagen brand as well as the group-wide cloud-based platform (also known as One Digital Platform, ODP) will be built on Microsoft’s Azure cloud platform and services as well as Azure IoT Edge. The intent is to streamline the technical landscape.
Via the Volkswagen Automotive Cloud, Volkswagen will optimize the interconnection of vehicle, cloud-based platform, and customer-centric services for all brands, such as the “Volkswagen We” ecosystem.
As part of the new entity, Volkswagen will establish a new automotive cloud development office in North America near Microsoft’s headquarters. Microsoft will provide hands-on support to Volkswagen as it ramps up its new automotive cloud development office.
Beyond the technological rationale of the partnership, Microsoft will provide access to cloud expertise across its organization.