• Volkswagen and Microsoft will collaborate to accelerate Volkswagen’s digital transformation
  • Volkswagen chooses Microsoft Azure platform as the foundation for Automotive Cloud and connected car services for its fleet
  • Decisive step for Volkswagen in its transformation into a mobility provider with fully connected vehicle fleet
  • Volkswagen will establish a new automotive cloud development office in North America and Microsoft will help support its initial development
Volkswagen said that from 2020 onwards, more than 5 million new Volkswagen-brand vehicles per year will be fully connected and will be part of the growing Internet of Things (IoT) in the cloud.

Microsoft and Volkswagen will develop the Volkswagen Automotive Cloud (VAC) which will allow over the air software updates for connected vehicles as well as advanced telematics for Volkswagen owners.

In the future, all in-car services for vehicles of the core Volkswagen brand as well as the Group-wide cloud-based platform (also known as One Digital Platform, ODP) will be built on Microsoft’s Azure cloud platform and services as well as Azure IoT Edge.

“The strategic partnership with Microsoft will turbocharge our digital transformation,” said Dr. Herbert Diess, CEO of Volkswagen AG. “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.”

“Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers,” said Satya Nadella, CEO of Microsoft. “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 cloud computing market is highly competitive with tech giants Microsoft, Amazon, Oracle and others looking to secure major industrial clients.

The Volkswagen deal will be seen as something of a coup for Microsoft in its battle with Amazon to become the world's biggest cloud provider.