Volkswagen aims to expand its automotive cloud from Europe to the US and China. Herbert Diess, CEO of Volkswagen AG, and Microsoft CEO Satya Nadella announced on Wednesday in Berlin, the Volkswagen Automotive Cloud based on Microsoft technology to offer not only in Europe but also in the US and China.

At the MWC event in Barcelona, Nadella was surprised when he met Daimler CEO Dieter Zetsche. The managers discussed the problems of transforming their business models. Both companies need to change their business models from high-margin individual products to low-margin services. Microsoft has already taken the step into the cloud era, Daimler – and other auto companies – are still in the thick of it.

With the deal of extensive cloud computing services in China and the US, Microsoft’s remote computer would allow customers with personalized media streaming as well as suggestions for parking. According to a statement, Volkswagen and Microsoft are already working on the first lighthouse projects for connected vehicle services. As a result, the development of Volkswagen’s North America development center is progressing.

In addition to Microsoft, Google is pushing another classic player in the IT industry into the automotive market. Apple has long been pledged plans to massively enter the automotive world. The iPhone manufacturer has recently reduced its “Project Titan” back.

Volkswagen is also cooperating with the German specialist Diconium in its digitization plans. Such automotive cars will be used by the company for its ID electric cars that are yet to hit the showroom in 2020.

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