Cloud for the automotive sector – what are the benefits?

5 benefits of the cloud for the automotive sector


It’s undeniable that the cloud is impacting different industries and helping companies become more efficient than ever before. The automotive sector isn’t any exception as the cloud is redefining what manufacturers can achieve and how they can compete favourably with other players in the industry. Here are 5 ways the cloud is impacting the automotive sector.

1. Supports Internet of Things (IoT)

One of the key advantages of cloud infrastructure is that it supports IoT in the automotive sector, thus leading to an increase in its applications in the automotive sector. In other words, it helps to keep everything connected.

With the IoT, drivers can use their smartphones as the digital key to open and start their car. We will also be able to monitor the status of our car’s parameters in real-time to know when a service is needed. Furthermore, it will help enhance the safety of drivers and prevent the occurrence of traffic jams and congestion.

Since the technology relies on the generation of big data, IoT will be the source of the data while the cloud serves as the ultimate destination for it to be stored. Simply put, the cloud is an enabler of IoT. Additionally, the cloud provides ample resources for automotive manufacturers, so they don’t have to spend their nose on setting up their infrastructure.

2. Enhances autonomous driving

Autonomous driving is perhaps one of the most brilliant innovations in mobility. Self-driving cars are equipped with a number of sensors, cameras, radars and artificial intelligence for them to travel without a human behind the wheel. For these cars to be able to travel safely, they will require continuous data flow and uninterrupted network service, both of which the cloud can provides.

When collected, these vast amounts of data (known as big data) are processed using cloud platforms to enhance the efficiency, safety and security of self-driving vehicles. This means there will be two-way data and information transfer between the vehicle and the cloud. We have seen early success in the use of cloud infrastructure for GPS location and tracking, ANPR and car infotainment systems, but manufacturers are working on using the cloud in more complex ways for self-driving.

3. Reduces costs

One of the most important benefits of the cloud for the automotive sector is that it helps to cut down costs. Many manufacturers have had to rely on the existence of on-site infrastructure for their daily operations, and this has translated to huge overheads for hardware, software licensing, space, power, cooling systems, hiring and training of staff, and much more.

With the cloud, these costs can be reduced to the barest minimum. Manufacturers can move their apps and data to the cloud, thereby eliminating worries about the purchase and upgrade of hardware as well as other costs associated with on-premise IT infrastructure. The cloud allows them to continue to run their operations without having to spend a fortune on IT-related expenses.

4. Security and risk reduction

The rising cases of data breach across the globe have become a source of concern for enterprises of all sizes. Like in any other sector, when manufacturers run their own on-premise infrastructure, they are responsible for safeguarding their sensitive data and keeping their systems safe from unauthorized access by attackers. Unfortunately, many companies struggle in this regard because their IT departments are ill-equipped to identify and handle all kinds of security threats.

With the cloud, manufacturers can transfer the burden of protecting their systems to cloud providers. Besides protecting the systems from the malicious activities of hackers, the cloud also helps to reduce the risk of data damage and errors.

5. Minimizes complexity

The automotive sector involves high-level operations, both technically and non-technically. From handling critical business processes to facilitating engineering simulations and maintaining dealers’ networks, there are just too many things to be done – all of which necessitates a powerful infrastructure.

In the cloud, all these activities are simplified and carried out with great ease. Employees can access both the amount of storage space they need and the computing capabilities required for the daily running of a business. It also makes implementation and management easy, thus helping manufacturers to overcome complexity quickly.


The cloud relieves automotive manufacturers of the burden of running and maintaining their own on-site infrastructure, therefore giving them the freedom to focus on the core of their business and achieve more. With the changes we have seen so far, it is certain that the cloud will continue to drive the automotive sector.

Cloud for the automotive sector