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Why Volkswagen chose Microsoft Azure over AWS



Microsoft has good experience in the automotive industry, beyond Volkswagen. The company has highlighted Aston Martin, Honda, Mazda and Renault-Nissan Alliance as Azure customers, and Nadella said in a 2016 Wall Street Journal interview that Daimler, BMW, Ford and Toyota are "important customers of us." [19659002] "I'm very excited about all the car companies that use Azure today," Satya Nadella said in the interview.

Microsoft does not break out Azure's sales, but Morgan Stanley analysts estimate that it accounted for nearly 10 percent of sales in the last quarter. Jay Vleeschhouwer, an analyst at Griffin Securities, estimates revenues of $ 1

6 billion in 2019, which will account for 12.6 percent of total Microsoft sales. It will make it less than half of the AWS size, which will grow to $ 35 billion this year, according to analysts surveyed by FactSet.

"At some point, the car cockpit may be a new battlefield," said Vleeschhouwer, who has a "buy" rating on Microsoft and does not cover Amazon. He thinks of audio assistants in the car – "Alexa, take me home," that kind of thing. "

While Volkswagen is pushing Microsoft's workloads, AWS has a significant auto business, with BMW, Audi and Toyota Research Institute all listed as customers. And a Volkswagen employee talked about the company's use of Amazon's cloud at AWS re: Invent- conference in Las Vegas in November

In an e-mail statement, an AWS spokesman said that in addition to traditional car companies, Lyft, Uber, Grab and Ola are all customers.

"The interest in the AWS from the automotive industry is significant Accelerating on top of a strong base, "said the spokesman, adding that customers" get the most functionality, innovation, agility, security, performance and ecosystem choices from any other infrastructure provider. "

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