VW Steps Up Digital Push Connecting Cars Through Microsoft Cloud

  • Microsoft’s Azure to connect entire fleet for in-car services
  • VW to set up digital headquarters with 300 engineers in U.S.
Photographer: Daniel Acker/Bloomberg
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Microsoft Corp. and Volkswagen AG are set to strike a deal to use the U.S. 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.

VW will channel all of its digital offerings through Microsoft’s Azure software, creating the world’s largest automotive cloud of its type in an effort that’ll help streamline future developments, the Wolfsburg, Germany-based company said Friday in a joint statement. By 2020, more than 5 million new cars per year will connect using the software. The two companies didn’t disclose the value of the deal.