With the changing consumer demographics, businesses of all shapes and sizes are paying more attention towards technological integration with systems that are easily adaptable. This further requires close partnerships between automotive and technology companies to form a better synergy for quality and competitive delivery.

In this light, automotive manufacturers are leveraging the cloud technology to change the way industry functions and operates. The dealerships firms use cloud computing to achieve better economies of scale while streamlining their operations and reducing overhead costs.

Let’s take a quick glance at various factors that are driving the adoption of cloud technology in the automotive industry

Cloud computing connects remote servers to manage, process, and store data by using a simple internet connection, instead of procuring and deploying a physical server in an onsite location. According to a recent research conducted by Pentana, about 67% of the new software deployments are anticipated to be hybrid cloud and SaaS model by the end of the year 2014. The major factors that are like to drive this growth are better network speed together with expanding big data requirements.

Moreover, a global trend of stringent government regulations on energy efficiency and safety norms is adversely affecting the automotive sector. The manufacturers are vying to create partnerships with clean energy firms in order to marry their operational functions. In such a scenario, cloud technology becomes an essential breakthrough. The other vicinities include advancements in information technology, wherein analysts anticipate that the deployment of this cutting-edge know-how would increase the total car value by nearly 40% by the year 2025.

Furthermore, to overcome market volatilities that can result in declining sale and revenues as well as may consequently lead to rise in the component prices, cloud infrastructure can enable automotive brands to significantly trim-down costs. Besides, plummeting hardware costs, the companies can perform test data analysis to analyze the performance and efficiency standards of components like safety devices, power distribution, engines, torque distribution, etc. Even though, the analysis wing and test centers may be located in different locations, adoption of the cloud computing technology allows businesses to easily share information for the multiple test scenarios.

The supply chain management in automotive industry, outsourced from diverse locations by using cloud can also streamline the flow of information to ascertain timely delivery of components. As both the manufacturer and supplier can possibly have unique software infrastructure in their working environments. In this light, a cloud-based interface may help foster communication and enable fast sharing of data/ information, despite following dissimilar internal procedures.

Hence, the advantages of the cloud technology in the automotive industry cannot be disregarded. The technology is proved as a worthy investment over a period of time.