Why Volkswagen chose Microsoft Azure over AWS



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Microsoft has a lot of experience in the automotive industry, beyond Volkswagen. The company has designated Aston Martin, Honda, Mazda and the Renault-Nissan Alliance as Azure customers. Nadella said in an interview with the Wall Street Journal in 2016 that Daimler, BMW, Ford and Toyota were "important customers for us."

"I am very happy with all the builders using Azure today," said Satya Nadella in the interview.

Microsoft does not exploit Azure 's business figure, but analysts at Morgan Stanley estimate that it accounted for nearly 10% of sales in the last quarter. Jay Vleeschhouwer, an analyst at Griffin Securities, expects a turnover of $ 16 billion in 2019, which would represent 12.6% of Microsoft's total sales. According to analysts surveyed by FactSet, this would be less than half the size of AWS, which is expected to reach $ 35 billion this year.

"At one point, the cockpit of the car could be a new battleground," said Vleeschhouwer, who has a "buy" rating on Microsoft and does not cover Amazon. He is considering voice assistants in the car – "Alexa, bring me home, that sort of thing."

While Volkswagen imposes workloads on Microsoft, AWS has its own automotive sector, with BMW, Audi, and the Toyota Research Institute, all listed as customers. And a Volkswagen employee talked about the use of the Amazon cloud by the company at the AWS re: Invent conference in Las Vegas in November.

In an e-mailed statement, an AWS spokesperson said that in addition to traditional car manufacturers, Lyft, Uber, Grab and Ola were all customers.

"The interest driven by AWS in the automotive sector is accelerating significantly," said the spokesman, adding that customers "benefit from most feature options," he said. innovation, agility, security, performance and ecosystem of any other infrastructure provider. "

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