Volkswagen strikes deal with Microsoft to build cars connected to the cloud

Volkswagen plans to use Microsoft Azure to build a cloud service for its fleet of vehicles

Volkswagen plans to use Microsoft Azure to build a cloud service for its fleet of vehicles

Microsoft and Volkswagen struck a deal to use the USA software giant's cloud technology to connect the auto manufacturer's entire vehicle fleet as the world's biggest carmaker steps up its transformation into digital and mobility services.

Volkswagen and Microsoft have struck a deal that will see the car-maker embed internet services into its vehicles with the software giant's cloud technology, the companies announced Friday.

"The strategic partnership with Microsoft will turbocharge our digital transformation", said Dr. Herbert Diess, CEO of Volkswagen AG. "We will play a key role in shaping the future of auto-mobility". "The world's leading companies run on Azure, and we are thrilled that Volkswagen has chosen Microsoft".

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Volkswagen is taking steps for a digital transformation that it hopes will serve as the technological basis for an "industrial automotive cloud". Specific details on what the service will actually look like were not provided, but Volkswagen did say that Azure IoT Edge will be part of its cloud service.

There's no word on when Volkswagen will begin integrating its Automotive Cloud platform in its vehicles, but it's a big win for Microsoft and its cloud efforts that could lead to an increased presence in the automotive industry. The workforce is expected to grow to about 300 engineers in the near future. "We want to leverage what we can from Microsoft's culture and Microsoft's technology".

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