Volkswagen Teams Up with Microsoft to Revolutionize Cloud Services

Volkswagen and Microsoft are joining forces to create a massive automotive cloud, aimed at supporting all future VW digital services and mobility offerings.

Volkswagen’s supervisory board has given the green light to the deal with Microsoft. According to VW, this collaboration marks a significant step in its journey to becoming a mobility provider with a fleet of fully connected vehicles, part of the Volkswagen We digital ecosystem.

Herbert Diess, CEO of Volkswagen, expressed enthusiasm about the partnership, noting that it would accelerate VW’s digital transformation. Diess highlighted the complementary strengths of Volkswagen, one of the world’s largest automakers, and Microsoft, known for its technological prowess. Together, they aim to shape the future of automotive mobility.

Starting in 2020, over five million new Volkswagen vehicles each year will be fully connected, becoming part of the Internet of Things (IoT) in the cloud. The partnership aims to blend Microsoft’s global cloud expertise with Volkswagen’s extensive experience in the automotive industry.

Satya Nadella, CEO of Microsoft, emphasized that Volkswagen is leveraging technology to offer innovative connected car services. He expressed excitement about the collaboration, highlighting how it would reimagine the driving experience globally.

The goal of the partnership is to develop a comprehensive automotive cloud, which will support all in-car services and Volkswagen’s group-wide cloud platform, known as One Digital Platform (ODP). This platform will be built on Microsoft’s Azure cloud services and Azure IoT Edge.

Volkswagen aims to optimize the connection between vehicles, the cloud-based platform, and customer-centric services throughout its brands, such as the Volkswagen We ecosystem. This automotive cloud will facilitate consistent mobility services across VW’s entire lineup and introduce new features like in-car consumer experiences, telematics, and secure data connectivity between the cars and the cloud.

To support the development of this automotive cloud, Volkswagen will set up a development office in North America close to Microsoft’s headquarters. Microsoft will offer hands-on support, including resources for hiring and HR management, with the engineering team expected to grow to around 300 people.

Besides the technological benefits, Microsoft’s cloud expertise will be invaluable to Volkswagen’s developers and engineers, fostering a culture of collaboration and agility that can be integrated into the core VW organization.

Looking ahead, the products developed through this partnership will be extended to other Volkswagen brands worldwide, forming the basis for future customer-focused services across both electric and conventionally powered models. Future Volkswagen cars will act as mobile IoT hubs powered by Microsoft Azure.