Toyota teams up with Microsoft

Microsoft and Toyota have agreed to join forces to develop internet-based services for the car manufacturer's customers around the world.

The deal will see the two companies invest around $12m in Toyota Media Service, which offers digital services to Toyota customers. Together, they plan to built a global network for the next generation of Toyota's digital services, encompassing everything from GPS systems to energy management, based on Microsoft's Azure cloud computing platform by 2015.

Microsoft's chief executive Steve Ballmer said Windows Azure would "provide the enterprise-grade, scalable platform" that Toyota, which sells it vehicles in more than 170 countries, needs to deliver services in its cars around the world.