Volkswagen and Microsoft recently announced a strategic partnership to design and develop a dedicated automotive industry cloud called ‘Volkswagen Automotive Cloud’. The product will come pre-installed in Volkswagen Mobility offerings as well as digital services. The collaboration received an approval by the Supervisory Board of Volkswagen AG on 28th September 2018. Following the deal, Volkswagen will vigorously move ahead towards its planned digital transformation. Together with Microsoft, Volkswagen is mulling to come up with a new range of vehicle ‘Volkswagen We’ that will house connected devices and digital ecosystem.

CEO of Volkswagen AG, Dr. Herbert Diess said: “The partnership will boost the company’s transformation to the digital age”. The combination of the respective expertise of Volkswagen, a renowned name in the automobile industry, and Microsoft tech giant will contribute immensely towards future automobiles.

Microsoft CEO, Satya Nadella said, “Volkswagen would use Microsoft technology for developing unique connected cars services”. The collaboration is great news for Microsoft as it enhances its competitiveness in the market. Most world-leading firms have already collaborated with Microsoft Azure for connected devices. Volkswagen and Microsoft’s partnership will help both companies excel in their respective endeavors while enhancing the driving experience for the people.

Volkswagen is mulling to introduce more than 5 million connected cars annually from 2020 onwards. These cars will be equipped with the Internet of Things in the cloud. The strategic collaboration will help Volkswagen leverage the cloud and connected solutions in its future vehicles. It is expected that Volkswagen global market will greatly benefit Microsoft in showcasing and promoting its cloud-based services.

Volkswagen and Microsoft Announce Strategic Partnership To Develop Volkswagen Automotive Cloud 1

The two companies under the partnership will work towards the development of unique automotive cloud. The deal will have long-term implications, as the future Volkswagen connected car services will use Microsoft technology. The collaboration, in short, will help the automotive company to develop Volkswagen Automotive Cloud which would be utilized by the company for the optimization of interconnected vehicles, customer-centric services, and cloud-based platform.

The development of the Volkswagen Automotive Cloud will widen the horizon of the company allowing them to offer a brand new service to its customers. The new services may include in-car consumer experiences, telematics, and connecting data between a car and the cloud.

Following the deal, Volkswagen is expected to come up with a brand new headquarters in North America near Microsoft’s headquarters. The new headquarters will allow the companies to work in harmony. The proximity will allow Microsoft to provide hands-on support to the automotive company. The newly established headquarters will house automotive cloud development office, human resources management, consulting services and resources for hiring purposes. With the new office, the workforce of the company is likely to rise to nearly 300 in the future.

The collaboration between Microsoft and Volkswagen would prove beneficial for the automotive company in all aspect. Besides the rationing of the technology, Microsoft will also leverage its technical expertise throughout the working of Volkswagen. In short, the collaboration can enable the automotive company to transform its core services to meet the market requirement.

The company now plans to roll out the products developed under the partnership to the Group’s other brands across the global industry.