Cloud is the solution for automotive
Cloud’s benefits for the automotive industry are well known—improved cost-efficiency, better scalability, faster time to market, and increased reliability—as well as access to new and innovative technology as a readily available service.
These benefits are needed now more than ever. Many Automotive Original Equipment Manufacturers (OEMs) began 2020 facing their first slowdown in five years. With advances in connected, autonomous, shared and electric (CASE) transforming technology and business models, and fast-evolving consumer behavior fueling changes in the market, the industry’s traditionally static value chain continues to be rapidly disrupted.
When COVID-19 struck, these challenges were accelerated and amplified exponentially. The industry now needs to figure out how to continue investing in CASE while reigning in costs and staying profitable—and simultaneously managing the repercussions of the pandemic.
To do so, automotive manufacturers need to focus on four areas in particular:
The value case for cloud
Cloud-based transformation is a key part of the solution for automotive OEMs as they look to simultaneously reduce costs, increase agility in how they do business, and enhance scalability for the vehicles of the future.
While transformative cloud solutions can enhance every stage of the automotive value chain, there are four areas where cloud may offer the greatest return on investment over the short term.
- Core IT Transformation
- Customer Experience
- Mobility Services & Connected Car
- Software-Defined Car
Due to the COVID-19 pandemic and rapidly changing environment, the need for cloud has been amplified and become more urgent than ever before. To respond to current industry trends and challenges, automotive companies are adopting the cloud as a platform for:
How to get started
Scaling up the use of cloud is an urgent imperative for automotive companies. But it needs to be done in the right way. Many companies adopt a two-speed approach to their cloud journeys, investing significant time and resources into cloud projects, while simultaneously maintaining their legacy systems. An alternative approach is to focus first on modernizing and optimizing the existing legacy landscape. This frees up much-needed resources, enabling the organization to properly concentrate on the four key focus areas: core IT transformation, customer experience, mobility services/connected car, software-defined car.
Cloud maturity will increasingly define the winners and losers in the years to come. Now’s the time to capitalize on the scalability, efficiency and innovation of the cloud.