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How software is redefining the vehicle
The automotive industry is undergoing the biggest transformation since the introduction of electronics in vehicles: future vehicles will be increasingly software-centred in order to obtain new or improved functions and applications even after purchase, while at the same time eliminating errors and safety gaps. This new type of vehicle is known as a ‘Software Defined Vehicle’ (SDV).
Our ‘SDV on Tour’ series of articles provides an overview of the four IT areas we have identified that are most affected by this change and are also crucial for a successful transformation:
- SDV.CLOUD
- SDV.ONBOARD
- SDV.OFFBOARD
- SDV.DEV
We start with SDV.CLOUD - the technological basis for connected vehicles, digital services and new business models.
Author
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Lorenzo Guerrasio
Lead Business Consultant
Illustration: SDV visualisation
Cloud technology as an enabler for connected vehicles and new services
In the SDV era, cloud technology is crucial for modern mobility. The traditional vehicle was limited in its computing power and storage capacity by its onboard components. The connectivity of modern vehicles to the cloud removes these limitations and enables large amounts of data to be processed at high speed. This not only allows new functions to be provided in real time, but also enables seamless integration into networked ecosystems - from smart navigation to remote control via mobile devices.
The cloud also enables the centralised operation of OTA (over-the-air) updates: All software versions for the entire vehicle fleet are stored in complex backend systems. This means that updates can be delivered to the right vehicles in a targeted manner - similar to mobile phones - and all variations of the software can be managed securely and efficiently. The use of digital twins - digital copies of the vehicle software - is one of the most exciting technologies that can recognise potential problems even before updates are made available to the vehicles and thus ensure a smooth update process.
Thanks to the cloud, the driver also has an improved user experience thanks to so-called ‘connected services’ that are located in the cloud. One well-known example is the digital key, which can be used to control vehicle locking via a mobile phone.
SDV.CLOUD also enables personalised driving experiences by seamlessly storing driver-specific settings, preferred driving modes and infotainment preferences in the cloud and synchronising them between vehicles. Modern cloud architectures such as microservices and serverless computing enable the development of scalable and maintainable software solutions that open up new business models that OEMs should utilise even more.
Taking automated driving to the next level with the cloud
The cloud also plays a central role in the further development of automated driving towards highly automated driving (HAF): the possibility of the car taking over driving independently - with little or no control by the occupant - would be inconceivable without the infrastructure provided by the cloud. Sensor data collected by the vehicles in real time is synchronised with high-resolution maps in order to make precise and safe driving decisions.
In addition, the cloud allows points of interest (POI) to be stored and updated so that drivers always have access to their favourite locations, charging stations or personal route suggestions. By continuously analysing data, traffic patterns can be better predicted and dynamic navigation services can be provided to further increase driving comfort and efficiency.
As large amounts of data and even some vehicle functions are increasingly being moved to the cloud, cybersecurity is also a key priority in the cloud. It must be ensured that vehicles are protected against malicious hacking and at the same time that sensitive, private data cannot be stolen. SDV.CLOUD integrates comprehensive security measures to protect data, communication and software integrity, including:
- Secure cloud architectures to prevent unauthorised access to systems.
- AI-driven threat detection to identify potential risks in real time.
- Encryption and authentication mechanisms for secure data exchange.
A systematic approach to cloud security ensures data integrity, compliance and protection against cyber threats, while effective resource utilisation optimises scalability and performance.
msg for automotive develops cloud-native applications and connected car services, including digital key, valet parking and theft protection, using leading platforms such as AWS, Azure and Google Cloud.
We integrate business logic, security and development across the entire process to ensure our clients' business goals are met and support security along the entire data journey.
In addition, by participating in the European Gaia-X and Catena-X initiatives, we are helping to create a secure and sovereign data ecosystem and develop future-proof standards for interoperability, security and data sovereignty. By using cloud-based data management and AI-driven analyses, msg for automotive enables more efficient operations management and continuous service improvements across the entire automotive ecosystem.
msg for automotive creates the technological basis for the mobility of tomorrow - intelligent, networked and future-proof.
Jun 3, 2025