Microsoft CEO Satya Nadella has vowed to not compete with partners, which was a selling point for Volkswagen when choosing a cloud vendor.
In the cloud wars, Microsoft has been able to win big business from retailers, largely because companies like Walmart, Kroger, Gap and Target are opting not to write big checks to rival Amazon.
Hüttel said he's not worried about Amazon building competitive cars, but suggested that there are other things the company is doing in connectivity that could seep into Volkswagen's market. Amazon was recently seen hauling cargo with self-driving truck technology from start-up Embark. "We're not going to turn around and compete with our customers," said Julia White, corporate vice president at Microsoft, at a Goldman Sachs tech conference in San Francisco last month.
Microsoft has plenty of experience in the auto industry, beyond Volkswagen. The company has highlighted Aston Martin, Honda, Mazda and the Renault-Nissan Alliance as Azure customers, and Nadella said in a 2016 interview with the Wall Street Journal that Daimler, BMW, Ford and Toyota are"significant customers of ours."
"At some point, perhaps the car cockpit could be a new battleground," said Vleeschhouwer, who has a"buy" rating on Microsoft and doesn't cover Amazon. He envisions voice assistants in the car —"'Alexa, take me home,' that kind of thing."
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