Microsoft and Volkswagen are set to strike a deal to use the U.S. software giant’s cloud technology to connect the company’s entire vehicle fleet as the automaker steps up its transformation into digital and mobility services.
VW will channel all of its digital offerings through Microsoft’s Azure software, creating the world’s largest automotive cloud of its type in an effort that will help streamline future developments, the company said Friday in a joint statement.
By 2020, more than VW brand five million new cars per year will connect using the software. The two companies didn’t disclose the value of the deal.
“The strategic partnership with Microsoft will turbocharge our digital transformation,” said VW CEO Herbert Diess. “We will play a key role in shaping the future of auto-mobility.”
Microsoft is trying to catch up to market leader Amazon.com Inc. in selling services that run cloud applications and store data for customers. While Amazon entered the market first and still has three to four times as much share as No. 2 Microsoft, the software giant is trying to win over large enterprise customers who may have historically used its corporate and computer software.
Volkswagen plans to set up an automotive cloud development center near Microsoft’s headquarters with a workforce that’ll grow to 300 engineers. Boosting its software operations is a critical part of Volkswagen’s strategy through 2025 to tackle a seismic industry shift toward electric and self-driving vehicles. Last month, Diess foreshadowed a “massive expansion” in its digital investments, including partnerships and acquisitions.
Sports2 years ago
Highest goal scorers in world football history
News1 year ago
A mysterious discovery at Onitsha mansion
Perspectives1 year ago
Looters’ list: ‘You be thief, I no be thief…’
Sunday Extra10 months ago
Lagos residents lose sleep as ‘One Million Boys’ returns
Metro and Crime1 year ago
‘Cult day’ celebration, Kwara police reacts
News11 months ago
Lawal Daura: Discovery of N21 billion, guns, PVCs, has exposed Buhari’s hypocrisy – PDP
Show Biz11 months ago
Nomoreloss’ death sparked something that led me to Christ –Weird MC
Body & Soul1 year ago
Biggest actresses of the 90s who hardly appear in recent movies