Microsoft closes cloud deal with Volkswagen for connected cars

Microsoft has signed a large-scale agreement with Volkswagen in the field of cloud computing. The two companies are going to create a software platform on Azure together, on which Volkswagen’s connected cars (hereafter connected cars) will have to run.

The services provided via the “Automotive Cloud” will have to be in more than 5 million new vehicles by 2020, says Silicon Angle. It also wants to build an even bigger “One Digital Platform” on Azure, which will not only be available for Volkswagen’s own cars, but also for those of its subsidiaries. These include Audi, Bentley and Porsche.

Few technical details of the project are known yet. However, Volkswagen has announced its intention to build a cloud development centre near Microsoft’s headquarters in Redmond. It is expected that 300 engineers will be working there soon. Because the two buildings will be so close together, the companies will be able to work closely together on the project.

Microsoft will not only be working on the Automotive Cloud, but will also help Volkswagen with hiring people, human resources management and consulting services. It will also offer training to Volkswagen’s engineers.

The amount of money involved in the contract is unknown. In 2017, however, Volkswagen sold 10.7 million vehicles worldwide, which means that Microsoft may be able to increase its turnover considerably. In addition, it will have a stronger position in the car market.

AWS

The agreement is important to Microsoft, given that competition as Amazon Web Services has defeated in the fight for the contract. In the meantime, Amazon Web Services is turning its attention to car manufacturers such as BMW.

The company further announced Echo Auto last week. Echo Auto allows drivers to use the Amazon Alexa voice assistant while driving. The system is placed on the dashboard and plugged into the infotainment system.