Different drivers of the same vehicle can use a log-in to personalize their connection. And carmakers can interact with customers well beyond the sale date.
Multi-billion-dollar growth
While only 5 percent of new cars -- including Ford Motor Co's Lincoln and DaimlerChrysler AG's Mercedes-Benz -- are telematics-equipped, IBM sees the technology portion of the market growing to about US$4 billion in the next few years, said Steve Ward, general manager of the IBM unit that sells to the auto industry.
Competition for the technology portion is stiff, according to Lawrence, and includes Germany's Siemens AG, software maker Oracle Corp, server-computer maker Sun Microsystems Inc and cellular phone-gear maker Qualcomm Inc.
IBM has forged partnerships with a range of US and European carmakers, parts suppliers and chipmakers, and more partnerships are expected next year, Ward said. Under an alliance with chipmaker Intel Corp, a version of IBM's WebSphere Web management software is built into Intel microprocessors geared for wireless telematics.
IBM also has an alliance with DaimlerChrysler, which is using IBM's ViaVoice speech-recognition software, among other tools. IBM also is a telematics partner of Motorola Inc, Volkswagen AG's Audi unit, BMW AG's North America unit and closely held ATX Technologies Inc, a Texas-based parts maker that sells telematics systems.
As it mines the market, IBM expects to sell voice and Web management software, databases, microchips for location systems, server computers to process data remotely, and services to consult on and install wireless networks.
Demand for interaction
"Ours is an off-board strategy with on-board elements," Ward said. "We believe that what users will want is interaction with the outside world."
IBM sees a broad role for telematics, starting with trucks and emergency vehicles and moving to cars. Beyond making vehicles more useful, wireless connections may help automakers cut design costs and let them gain sales by providing new telematics-based services to drivers, Ward said.
Telematics already is letting heavy equipment leasing companies monitor individual vehicles and set prices according to usage data sent from vehicles, Ward said.
Microsoft Corp's effort to have its Windows operating system run on-board computers has lagged in part because Detroit doesn't want to relinquish "command of the vehicle" to Microsoft, Heidingsfelder said.
RSS