Volkswagen and Microsoft have struck a deal that will see the car-maker embed internet services into its vehicles with the software giant’s cloud technology, the companies announced Friday.

The partnership has been set up to create the “Volkswagen Automotive Cloud”, which will see all future digital services in Volkswagen’s cars facilitated by Microsoft Azure, a cloud computing service.

From 2020, Volkswagen will integrate more than 5 million Volkswagen-branded vehicles per year to an internet of things network. The move forms part of a wider $4bn push from the German company to boost its digital transformation by 2025.

Volkswagen is taking steps for a digital transformation that it hopes will serve as the technological basis for an “industrial automotive cloud”.

In-car services for Volkswagen’s core brand, as well as the group’s current cloud service One Digital Platform, will be build on Microsoft Azure and IoT Edge, Azure’s artificial intelligence technology.