Microsoft Corporation MFST is teaming up with Accenture ACN to advance development of connected solutions (products and services) as well as ramp up digital capabilities for CNH Industrial N.V. CNHI.
Since 2018, Microsoft is collaborating with CNH Industrial to accelerate the latter’s digital transformation. CNH Industrial is leveraging Microsoft’s industry expertise as well as digital advisors and consulting services to develop connected services and vehicles’ solutions. The company is also utilising Microsoft’s Azure cloud services to ramp up its digital transformation.
CNH Industrial is a manufacturer of equipment and vehicles that are primarily used for agricultural and industrial purposes.
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Key Highlights of the Partnership
The latest five-year partnership between the three companies involves formation of a network of digital hubs across the United States, India, Brazil and Europe. These digital hubs will be utilized for designing, unveiling as well as management of digital services that augment CNH Industrial’s products and make them more sustainable.
Accenture and Microsoft’s joint venture, Avanade will also assist in creation of digital services to support new connected products and services’ solutions. The connected products will be deploying emerging technologies like Artificial Intelligence (AI), cloud computing, advanced analytics, and Internet of Things (IoT) to enhance functionality.
Accenture will also work on managing and coordinating activities within these hubs and offer CNH Industrial with skills and resources to create a digitally-empowered workforce.
By developing data-based digital services CNH Industrial will help customers with better fleet management in transportation vertical and improvement in yields for clients in the agriculture domain.
The development of enhanced connected vehicles is aimed at assisting CNH Industrial’s customers with computer-aided farming, green transportation and predictive maintenance, among other services. The company is looking at boosting the top line by adopting digital driven services to augment its product-sales business model.
Rapid Digital Acceleration Among Enterprises Bodes Well
Owing to the coronavirus crisis and the subsequent stay at home and work-from-home wave, enterprise across the globe is rapidly shifting away from on-premise systems to scalable cloud-based platforms.
Per an IDC report, worldwide spending on cloud services will reach more than $1 trillion by 2024 at a CAGR of 15.7% between 2020 and 2024. These projections bode well for Microsoft’s Azure platform.
Azure is one of the leading players in the cloud domain. Per a Synergy Research Group report, Azure cloud’s global market share in the third quarter of 2020 trailed only Amazon’s AMZN Amazon Web Services (AWS) share. Azure’s share stood at 18%, while AWS share was an impressive 33%. The cloud infrastructure services’ market witnessed an impressive 33% year over year improvement to reach $33 billion in revenues for the third quarter, added the report.
At present, Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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