Microsoft (MSFT) and Toyota (TM) announced a partnership today to build a next generation smart car platform using the Windows Azure software platform in Toyota all electric and hybrid vehicles.  The on board telematics systems will provide battery charging information along  along with GPS and multimedia technologies beginning in 2012.  The goal is to provide a complete cloud based system for Toyota customers around the world by 2015 which integrates home energy use for optimal energy management.   As part of the partnership, the two companies will invest $12 million in Toyota subsidiary Toyota Media Service.

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"Today’s announcement of our partnership with TMC is a great example of how we continue to invest in the automotive industry and of our commitment to power the services that are important to consumers," said Microsoft CEO Steve Ballmer. "It further validates the power of the cloud, as the Windows Azure platform will provide the enterprise-grade, scalable platform that TMC needs to deliver telematics in its automobiles worldwide."