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VW To Transform Its 'Industrial Cloud' Into A Future B2B Marketplace

VW To Transform Its  'Industrial Cloud' Into A Future B2B Marketplace
Germany’s Volkswagen AG, the largest automaker of Europe, plans create a an industry-wide marketplace for business customers to buy and sell industrial applications by expanding the scope and reach of its cloud-based software and data portal, the auto maker said.
Designed initially in partnership with, the aim of the company’s “industrial cloud” was to ultimately become a linkage between more than 120 factories of the company all around the world and its more than 1,500 suppliers and the 30,000 factories owned by the suppliers.
According to Nihar Patel, the executive vice president for strategic core projects at Volkswagen, the company plans to transform the portal into a market place where it would be possible to exchange data and software that can eventually help to hasten the speed of digitalization of a variety of factory processes - ranging from stamping to painting to machinery maintenance.
The portal of the company has already been opened for allowing in the first group of supplier partners, led by Siemens AG. It is expected that those partners will contribute software applications which will be shared with VW and among themselves. This has been described by the auto maker as “an App Store approach.”
Dürr, the German supplier of automated paint systems and plant engineering services and ABB, the Swiss industrial automation specialist, are among the initial wave of supplier partners.
According to Dirk Didascalou, vice president of the Internet of Things at AWS, this cloud service arm of Amazon will help Volkswagen in managing the portal and will also provide a range of cloud-based support services which will include data analytics and computing.
In terms of market capitalization, the German car maker is the third largest auto company of the world, behind Tesla Inc and Toyota Motor Corp. it has been several year that Volkswagen has been working on the industrial cloud in partnership with AWS, one of the fastest-growing, highest-margin businesses of Amazon. This arm of Amazon primarily works with corporate customers such as BMW AG and Toyota and Avis Budget Group and Formula One. AWS helps corporate to manage and analyze data and on some occasions even monetize such data.
The support of the company’s powerful Works Council and its supervisory board h already been lend to the company’s efforts to speed up the ongoing digitalization of its factories, Patel said.,

Christopher J. Mitchell

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