Volkswagen partners with Microsoft to develop cloud software

Volkswagen AG, the German automotive manufacturer, has partnered with the US-based technology company, Microsoft.

The companies will develop the Volkswagen Automotive Cloud, which they claim will be one of the largest clouds dedicated to the sector.

The cloud will be built using Microsoft’s Azure and IoT Edge services as the foundation.

From 2020, five million of the German firm’s vehicles will be connected to the ecosystem, which will enable fleets of cars to work as mobile Internet of Things (IoT) hubs.

“The strategic partnership with Microsoft will turbocharge our digital transformation,” remarked Dr. Herbert Diess, Volkswagen AG’s CEO.

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“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.”

As part of the deal, Volkswagen is set to establish a new office for automotive cloud development, to be located near Microsoft’s headquarters in the US.

“Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers,” added the CEO of Microsoft, 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.”