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Why Volkswagen chose Microsoft Azure over AWS

Why Volkswagen chose Microsoft Azure over AWS

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Microsoft has loads of expertise within the auto business, past Volkswagen. The corporate has highlighted Aston Martin, Honda, Mazda and the Renault-Nissan Alliance as Azure prospects, and Nadella mentioned in a 2016 interview with the Wall Road Journal that Daimler, BMW, Ford and Toyota are “vital prospects of ours.”

“I am very thrilled about all of the automotive corporations utilizing Azure right this moment,” Satya Nadella mentioned within the interview.

Microsoft does not get away Azure income, however analysts at Morgan Stanley estimate that it accounted for nearly 10 % of gross sales within the newest quarter. Jay Vleeschhouwer, an analyst at Griffin Securities, predicts income of $16 billion in 2019, which might characterize 12.6 % of complete gross sales at Microsoft. That may make it lower than half the scale of AWS, which can develop to $35 billion this 12 months, in keeping with analysts surveyed by FactSet.

“Sooner or later, maybe the automotive cockpit might be a brand new battleground,” mentioned Vleeschhouwer, who has a “purchase” ranking on Microsoft and does not cowl Amazon. He envisions voice assistants within the automotive — “‘Alexa, take me dwelling,’ that sort of factor.”

Whereas Volkswagen is pushing workloads to Microsoft, AWS has a large auto enterprise of its personal, with BMW, Audi and the Toyota Analysis Institute all listed as prospects. And a Volkswagen worker spoke concerning the firm’s use of Amazon’s cloud on the AWS re:Invent convention in Las Vegas in November.

In an emailed assertion, an AWS spokesperson mentioned that along with conventional automotive corporations, Lyft, Uber, Seize and Ola are all prospects.

“Curiosity in AWS from the auto business is considerably accelerating on high of a powerful base,” the spokesperson mentioned, including that prospects “get probably the most performance, innovation, agility, safety, efficiency, and ecosystem choices of some other infrastructure supplier‎.”

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