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Cloud Computing in the Automotive Industry

    If you’ve ever wondered where the future of logistics is headed, the answer is simple—It’s in the cloud.

    Advances with cloud computing in the automotive industry happen so quickly it’s hard to keep up with the demand.

    Below, we’ll discuss some of the benefits of cloud computing in the automotive industry. In addition, we’ll also take a glimpse at the challenges arising from automotive cloud services, how the current technology is used, and where it’s headed in the future.

    The Benefits of Cloud Computing in the Automotive Industry

    From design and prototyping to managing fleets and supply chain challenges, the benefits of cloud computing in the automotive industry span every sector. Cloud computing provides the following benefits:

    • Cost/Time Savings

    Cloud computing platforms save organizations money and time immediately because there’s no need to invest in expensive servers and accompanying optimizations. The cloud host provides the expensive processing power and storage to cover your needs.

    • Improved Security

    Cybersecurity is a constant challenge, but with cloud-based operations, you have a partner to help keep watch over security and compliance.

    • Reduced Equipment Maintenance

    Proper equipment maintenance and uptime are the responsibility of your cloud host, so you can focus on innovation and working with the right talent.

    Some of the Challenges Involving Cloud Computing in the Automotive Industry

    The automotive industry is growing as fast as the demand for cloud-based solutions. The rapid rate of growth makes it crucial to find fast, effective solutions to challenges:

    Security and Compliance

    Challenges in the highly regulated automotive industry run the gamut, from protecting sensitive user data and GPS privacy to laws that impact the use of autonomous vehicles.

    Cloud computing requires encryption and monitoring for safety and compliance at all times.

    Edge Computing

    Cloud systems rely on a network of computers around the world. These edge systems must securely communicate and relay real-time data through content delivery networks (CDNs).

    Immense amounts of real-time data have to pass from a vehicle’s onboard software to CDN locations and the main cloud computing source.

    Legacy Systems

    Cloud computing continues to advance daily, but the software used in manufacturing, maintenance, supply chain management, and onboard diagnostics (OBDs) is often outdated.

    The challenge is remaining integrated and compatible with these systems as cloud computing continues to advance.


    Latency involves the delay in sending and receiving data. This can be an issue when critical data needs to be shared with a driver, or in relaying traffic information to a self-driving vehicle.

    CDNs and onboard software are used to keep these delays to an absolute minimum.

    Some Real-World Examples of Cloud Computing in the Automotive Industry

    In many ways, cloud computing has become the heartbeat of the sector. The following are just a few examples of how it’s used daily.

    Computer-Aided Design (CAD)

    Running CAD tools on the cloud provides the computational power designers and engineers need for power-intensive processing and 3D rendering.

    Digital Twins

    Leading car manufacturers use cloud-based processing and data storage to create a virtual clone of new designs—an identical virtual model of a prototype. Engineers run data-intensive simulations of everything from road conditions and environmental changes to crash tests, aerodynamics, and other specifications.

    Once a vehicle is in production, digital twins are used to monitor and analyze systems for maintenance and other real-time data.


    In development or throughout a vehicle’s lifespan on the road, teams of developers, engineers, and data experts collaborate on design, testing, on-system upgrades, and monitoring via a unified cloud platform.

    Teams of the world’s best experts can work together and share their secure cloud-based workspace from anywhere in the world.

    Fleet Management

    Cloud computing is used for a wide range of supply chain monitoring, processing, and data analysis. Specifically, in the automotive industry this is used for fleet management, where cloud-based systems allow vehicles to communicate directly with one another and the primary cloud system.

    This connection, called telematics, uses cloud systems to optimize fuel use, track routes and shipments, and analyze systems for potential maintenance issues.

    The Internet of Things (IoT)

    IoT will play an even greater role in the future, but today’s uses are impressive. Smart vehicles connect to cloud computers, which in turn connect to a vast network of edge computers.

    Cloud-based platforms continuously monitor vehicles for maintenance, location, and complex traffic-oriented communication.

    The Future of Cloud Computing in the Automotive Industry

    There will continue to be revolutionary leaps forward in cloud computing in the coming years.

    IoT will continue to be used to automate tasks, optimize safety, send alerts, and maintain compliance as the world shifts toward electric vehicles and self-driving vehicles alike.

    Artificial intelligence (AI) and machine learning (ML) will be used increasingly as the computational capabilities of cloud computing provide the processing power. Intelligent computer systems won’t be limited to monitoring and sending alerts, but will be able to manage entire fleets, traffic routing, safety, and cross-network communications completely autonomously.

    New cloud-based applications will be in constant demand, and the automotive industry will be led by development teams that are able to keep up with the pace of new technologies.

    Partner with the Right Cloud Computing Development Team

    Excel SoftSources specializes in helping our partners remain at the cutting edge. The following are a few ways we make this happen:

    • Affordability—Our nearshore development team helps you save on costs without cutting corners on expertise.
    • Collaboration—Our developers are synchronized with US time zones, so communication is always immediate.
    • Efficient processes—We use agile methodology and DevOps for continuous communication and tracking, rapid deployment, and real-time security protections.
    • Logistics expertise—Our experience in developing complex logistics for automotive IoT, AI, design and development, and fleet management remains current with the most advanced technology and programming environments.

    If you’re looking for the right long-term cloud-computing software development team, we’d love to hear from you. Fill out our contact form so we can connect with you today!