Volkswagen and Microsoft Set to Join Forces On a New Self-Driving Car Software

February 19th, 2021 by

2021 Microsoft Volkswagen

Photo credit: Volkswagen

The Volkswagen Group and Microsoft have taken a significant step in the future of self-driving car software. The Group’s Car.Software Organization announced a partnership with Microsoft in efforts to build a dedicated cloud-based platform designed for future car systems. The alliance between the two companies will lay the foundation by combining the experience that Volkswagen has as an automaker and the global cloud expertise that Microsoft will be able to offer. What would this collaboration look like? Allow us to break it all down. 

More Details About the Microsoft and Volkswagen Partnership

Volkswagen will build a new automotive cloud development office in the United States and Microsoft will support its initial development. Microsoft will provide hands-on support including resources to help accelerate hiring such as consulting services and Human Resources. 

“As we transform Volkswagen Group into a digital mobility provider, we are looking to continuously increase the efficiency of our software development. We are building the Automated Driving Platform with Microsoft to simplify our developers’ work through one scalable and data-based engineering environment. By combining our comprehensive expertise in the development of connected driving solutions with Microsoft’s cloud and software engineering know-how, we will accelerate the delivery of safe and comfortable mobility services,” said Dirk Hilgenberg, CEO of the Car.Software Organisation.

What will come from the collaboration

Entering into a strategic partnership Volkswagen and Microsoft will collaborate to expedite Volkswagen’s digital transformation. Volkswagen decided to use Microsoft’s Azure platform as the foundation for its Automotive Cloud and Connect services for its fleet. Microsoft Azure, is a cloud computing service designed for building, testing, deploying, managing applications, and services through Microsoft-managed data centers.

Plans for the future will have all in-car services for the Volkswagen brand be built on the Azure cloud platform and services, streamlining the technical landscape. The Volkswagen Group is set to invest around 30 billion in digitalization by 2025, and increase the proportion of in-house development of software in the car from 10% to 60%. Further strengthening its capabilities both companies will build AD and ADAS solutions faster with one development platform. 

“This is the next evolution of our foundational work with the Volkswagen Group to enhance their transformation as a software-driven mobility provider. The power of Microsoft Azure and its computer, data, and AI capabilities will enable Volkswagen to deliver secure and reliable automated driving solutions to their customers faster.” ” said Scott Guthrie, executive vice president, Cloud + AI at Microsoft.      

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