Volkswagen wants to transform itself into a digital services-driven company – with the help of Microsoft.
The German automaker has joined hands with the Redmond giant to develop the Volkswagen Automotive Cloud, which will aim to combine popular third-party applications to provide a seamless experience for drivers.
The Volkswagen Automotive Cloud will be powered by Mirosoft’s Azure cloud and IoT Edge platform, and will include the company’s proprietary cloud services like Azure IoT, PowerBI and Skype, including telematics and productivity solutions
Dr. Herbert Diess, CEO of Volkswagen, said: “The strategic partnership with Microsoft will turbocharge our digital transformation. Volkswagen, as one of the world’s largest automakers, and Microsoft, with its unique technological expertise are outstandingly well-matched. Together, we will play a key role in shaping the future of auto-mobility.”
Satya Nadella, CEO of Microsoft, said: “Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers. The world’s leading companies run on Azure, and we are thrilled that Volkswagen has chosen Microsoft. Together we will reimagine the driving experience for people everywhere.”
The auto manufacturer will use its new cloud service to significantly optimise the connections between its vehicles, cloud-based platform, and customer-centric services for all brands, such as the “Volkswagen We” ecosystem. It will also be able to leverage consistent mobility services across its entire portfolio, providing new services and solutions such as in-car consumer experiences, telematics, and the ability to securely connect data between the car and the cloud.
Porsche, another German automaker and also a Volkswagen subsidiary, announced last week that it was increasing its total investment in venture capital activities by €150 million for the next five years. With this investment, Porsche is looking to gain access to new technologies, trends and business models. Porsche Ventures, being a strategic investor, is aiming to invest in business models that involve mobility, digital lifestyle and customer experience, along with futuristic technologies like AI, blockchain, VR and AR.