Volkswagen (VW) on Friday said that it joined forces with Microsoft to utilise the tech giant’s Azure cloud platform to provide digital services in its cars.

As from 2020, over 5 million VW vehicles per year would be fully connected through Microsoft’s cloud platform and internet of things (IoT), the auto giant said, without disclosing any financial details.

Those vehicles would be rolled out with the launch of the carmaker’s new generation of electric cars, starting with the ID Neo full battery compact vehicle.

Moreover, the German car manufacturer would also set up a development centre in Washington close to Microsoft’s offices in Redmond,

The US company would provide engineers, while VW would transfer some labour to the new centre, which eventually would have around 300 people.

The deal marked the latest move by a key automobile company to adopt technology in the hope of generating a lucrative source of revenue in the next years.

“Volkswagen is harnessing technology to digitally transform and deliver innovative new connected car services to its customers,” Microsoft’s CEO Satya Nadella said.

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