The Automotive Industry Meets Cloud Computing

December 8, 2012

Cloud Computing Meets the Automotive Industry

From CD Players to “Infotainment” Systems

cloud computingOver the past ten years, there has been a dramatic leap in the technology brought to the automobile. Back in the 1990s a car with a good stereo, keyless entry, memory, and heated seats was considered cutting edge. By the year 2000 navigation systems were starting to debut in high-end luxury cars. BMW took it further in 2002 with iDrive, allowing you to use a joystick to control nearly all functions of the car.

As 2013 nears, we’re poised for another leap forward as more automakers are turning to the cloud to better distinguish themselves in an ever competitive marketplace.

The Future of “Infotainment” Systems in the Cloud: A Win for Consumers and Automakers, Alike

1) The Cloud Enhances the In-Car User Experience

The standard of most well-equipped automobiles has been “Infotainment” systems that provide Navigation, Satellite Radio, and more recently iPod connectivity. Audi and Mercedes Benz debuted in-car internet in selected models last year. The connectivity was limited to providing navigation traffic updates and in-car internet access.

But others are going further. With smartphones becoming a consumer staple, there is demand for in-car connectivity to apps like Pandora,  Facebook, and Google, and even the option to view email.

Honda, Ford, Cadillac, and Toyota have debuted systems that connect their cars to the internet via the consumer’s smartphone. It gives automakers the ability to offload the processing burden from their infotainment systems and use the cloud to provide the user experience that the customers want. It also provides a datalink to the vehicle that can be leveraged to keep Navigation and other software up to date.

2) It Also Lowers Warranty Costs for Automakers

The benefits aren’t limited to the consumer, however. The automakers see the cloud as the next logical step for reducing warranty costs and improving quality.

The current method is to have the customer bring the car to the service department, where a mechanic manually updates the software. Furthermore, it inconveniences the consumer and lowers their perception of the car’s quality.

Given the complexity of software in vehicles, the ability to roll out software updates over the air presents a significant cost savings. It also presents the opportunity to download real world usage data to give them an early warning of a potential flaw and devise a solution quickly.

3) It Can Help Improve Perceptions of Quality

The move to the cloud presents an opportunity for improving quality. As Ford has found out with their My Touch infotainment system, buggy software can have real implications in perceptions of quality. Once at the top of JD Power rankings in quality, they’ve fallen to the middle of the pack. The ability to tweak their vehicle software in real time brings them another tool to improve quality on the fly.

Overall, the cloud brings new abilities to the automobile that we haven’t seen before. The ability to remain connected while on the the road brings an unprecedented level of information to the fingertips of the driver. It also gives automakers a new stream of data to analyze, parse, and proactively develop solutions for faults they wouldn’t have otherwise known about.

 

How do you think automakers’ adoption of cloud computing will continue to evolve?

 

 

Corporate Strategy, Sales Operations

Sudip is in charge of Corporate Strategy, Sales Operations at <a href="http://www.alegeus.com/">Alegeus Technologies</a>. Previously, he worked at OpenView from 2012 until 2014 with portfolio companies to provide insights on the markets they operate in, their customers, and drive development of business strategies.