In 2018, Volkswagen announced a strategic partnership with Microsoft to help accelerate the development of one of the largest dedicated automotive industry clouds, known as Volkswagen Automotive Cloud or VW.AC. Designed to provide a smart, and scalable foundation for connected vehicles, VW.AC is expected to handle data from millions of vehicles per day, with the goal of delivering connected experiences to customers around the globe starting in 2022 – a key part of the Volkswagen Group strategy to become a leading automotive software innovator.
“We are now a global leader with our electric platforms and a broad range of electric vehicles,” said Herbert Diess, Chief Executive Officer of the Volkswagen Group earlier in November 2020. “In the coming years, it will be crucial to also reach a leading position in car software in order to meet people’s needs for individual, sustainable and fully connected mobility in the future.”
To that end, the Volkswagen Group announced in November that it anticipates doubling its spending on digital development to approximately $28 billion over the next five years. Under the Car.Software Organisation, the large-scale software powerhouse for in-car software development in the Volkswagen Group, the company is building its own end-to-end software platform which includes VW.AC, an in-car operating system (VW.OS), and capabilities that will help enable the next generation of infotainment, vehicle performance, and passenger comfort up to automated driving.