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Thursday, 03/07/2002 2:15:43 PM

Thursday, March 07, 2002 2:15:43 PM

Post# of 93827
Interview: Microsoft Automotive
Vincent Lau speaks to Gonzalo Bustillos, Director of Business Development & Marketing (3/7/2002)

The Automotive Business Unit at Microsoft has invested half a decade to provide the automotive industry with great software that delivers information, entertainment, communication and services in vehicles. The company works very closely with automakers, automotive electronics manufacturers and consumers to develop its telematics solutions. Microsoft Car .NET architecture, products and services support the delivery of end-to-end telematics solutions for the automotive industry and its customers. Microsoft Car.NET architecture, products and services support the delivery of end-to-end telematics solutions for the automotive industry and its customers.

Please tell me about your role at Microsoft Automotive.

I am Gonzalo Bustillos, Microsoft’s Director of Business Development & Marketing in the Emerging Technologies Group. I oversee the marketing and business development activities for the Automotive Business Unit. This business unit works with automakers, automotive electronics manufacturers and service providers to address the market for in-car computing devices and telematics services.

What is Microsoft’s automotive vision? How do you see this vision applied in the telematics space?

Microsoft’s automotive vision is an extension of the company’s overall vision: “Empower people through great software, any time, any place, and on any device.”

Microsoft envisions a fully integrated and connected lifestyle where services are integrated and easily accessible across the home, office and car. This will be delivered through smart devices, XML and a common set of interactions. For automakers and suppliers, this approach to enabling a connected lifestyle provides maximum flexibility and reliability to fit every type of price tag and car model. Microsoft’s Car.NET architecture, products and services support this vision.

What is the automotive .NET strategy all about?

The best way to understand Car.Net is to consider what it does. Car.Net makes it possible to provide integrated services to car owners and passengers in a safe, cost effective and manageable fashion. It is based upon Microsoft’s .Net strategy and family of products. The .Net strategy is a framework based on open computing standards and comprised of multiple in-vehicle products and services. By giving drivers the Web the way they want it, Microsoft Car.NET services, products and tools will safely provide an integrated, secure and easy-to-use Internet experience.

How is this technology different with your current systems, or is this a completely new technology?

Car.NET isn’t a technology, but rather an architecture. Car.Net calls out a client, server, services and an architectural framework whose components are available today. It promotes Windows CE for Automotive technology for the in-vehicle embedded client and also endorses portable devices based on Windows CE technology. Car.Net incorporates a number of core infrastructure .Net XML Web Services, such as Passport for authentication; MyServices.Net for end-user data management; MapPoint.Net for navigation and routing services and many more available in the near future. Further, Car.Net can take advantage of MSN services and a host of third party end user services.

Where does Windows CE fit in with your current strategy?

Windows CE is a key component of our automotive strategy and our Car.NET framework. It precedes the development cycle of Windows CE for Automotive. The technology we develop for the auto industry is based on Windows CE, a robust real-time embedded operating system. While it shares the same rich platform for dynamic applications and services of the Windows CE operating system, Windows CE for Automotive enables special automotive features such as voice recognition technology, automotive power management, a customizable GUI and many flexible developer options. Because of these enhancements, new versions of Windows CE for Automotive are introduced after the latest version of Windows CE.

How do you differentiate from your competitors?

Several ways:

First: Microsoft’s proven in-car technology is on the road today, reliably bringing real-time information to drivers and passengers. In Europe, Bosch, Siemens-VDO and BORG Electronics have ongoing development projects. In Japan and the US, Microsoft has several programs based on Windows CE for Automotive with companies such as DENSO, Alpine, Clarion, Kenwood, Fujitsu-Ten, Delphi, Visteon and others.

Second: Microsoft offers an end-to-end solution for telematics based on industry-wide open standards. We have a portfolio of client technologies anchored around Windows CE technology; we offer our .NET portfolio of Web services and an extensive .NET family of products and development tools. Microsoft also offers an unparalleled array of technology partnerships.

Third: Microsoft Windows CE for Automotive is evolving to include provisions for new services and service components while maintaining compatibility with earlier versions. Presently, Windows CE for Automotive 3.5 is a telematics software platform that provides developers with the building blocks to quickly and reliably create powerful in-vehicle computing devices. This newly upgraded open platform showcases dramatic enhancements in key areas such as hands-free, eyes-free communications; better speech recognition; safety; Internet access; faster startup times; cost-efficiency; flexible developer tools; and faster, more robust graphics capabilities.

How will this technology add value to your customers’ end users?

Car .NET delivers value in multiple tracks. Drivers and passengers benefit by obtaining access to personalized information and user-centric services anytime, anywhere in a safe, cost effective and manageable fashion using either portable or in-vehicle smart devices. The TSPs (telematics service providers) benefit from the ability to scale and provide a wider array of Web-based services. The carmakers and automotive electronic suppliers benefit by lowering development costs and shortening design cycles and accelerating time to market.

Windows CE for Automotive enables motorists to take advantage of new technology without compromising safety. The platform uses a flexible infrastructure to allow cellular phones, handheld computers, laptops and other devices to interact seamlessly. For example, cell phones can be used to unlock a car.

Microsoft's Windows CE for Automotive 3.5 uses advanced speech-recognition technology to allow users to make phone calls or hear information without taking their hands off the wheel or their eyes off the road. Driver distraction controls ensure that certain functions - such as typing or reading text - can be performed only when the car is stopped.

Which space does Microsoft compete in and whom do you consider your competitors?

Microsoft offers an end-to-end platform for telematics applications and services. Competitive offerings focus on particular segments or niche applications of the value chain. For example, Windows CE for Automotive is a software platform and as such any proprietary in-vehicle computing solutions could be considered competition.

What are some milestones that Microsoft has achieved?

Microsoft’s Automotive Business Unit has achieved many milestones in its five-year history within the company. It delivered the first in vehicle smart computing device (AutoPC); developed the first in-car appliance with speech as primary user interface; developed the first automotive software platform (Windows CE for Automotive) and has sponsored automotive software development forums throughout the world. The group also won multiple programs with the top 10 automotive electronic suppliers worldwide, is shipping in 10 car models worldwide and has launched Car.NET as the end-to-end telematics platform based on Web infrastructure technology. Most recently, Microsoft partnered with Accenture, the largest consulting and integration services bureau, to offer telematics solutions to the automotive industry at large.

Can you tell me more about Microsoft’s experience with Clarion and the AutoPC? Will there be a second joint effort?

The Clarion AutoPC is a device that is built on the first version (v1) of Windows CE for Automotive. We shipped v1 - four years ago. Since then, we have been working closely with our partners in the automotive industry and have taken into account their valuable input to put forth the most comprehensive automotive centric operating system. We are currently shipping v3.5 and Clarion, Bosch, DENSO and many others are using this newer version to build a range of in car computing appliances, from simple telematics boxes to infotainment systems for the car. Clarion is currently shipping in the US their second generation device based on Windows CE for Automotive v2 – branded the Joyride.

What are the current product offerings?

For embedded automotive clients, our most current product offering is Windows CE for Automotive 3.5, which was introduced in December 2001. We also offer an array of Web based .NET services for authentication, authoring, personalization and location based services. Through our MSN groups, we also offer an array of mobile services and content.

When can we expect a product rollout?

Several automakers – soon to be announced – are currently using Windows CE for Automotive-based in-car computing solutions. Others will follow soon. In the aftermarket, Clarion (US and Japan), MELCO (Japan), BORG (Europe) and NextTech (Korea) have devices based on out-technology in the market.

I see that the new MSN provides traffic alerts. What other features can we expect?

Automotive is a strategic market segment for Microsoft, consequently MSN, the Automotive Business Unit, and third party ISPs and ASPs are developing a compelling portfolio of mobile services for motorist and passengers. From personalized information, instant messaging, personalized entertainment and location based services. Moreover, Windows CE for Automotive 3.5 showcases advanced automotive-centric features such as:

(a) New Streamlined Graphical User Interface: Powerful, hardware independent tools, functionality and “skinnable” graphics enable designers to easily customize the appearance of their systems to different car lines.

(b) New Hands-Free Communication Interface: Drivers and passengers can now speak more naturally and directly to devices using simple voice commands. The completely rebuilt speech engine supports the latest human-like text to speech technology.

(c) New Platform Foundation: With the new platform configuration, developers can create a compact solution for devices with limited storage capacity. Developers are able to start with a small base and from there, build as much or little as required by the automaker.

(d) New Microsoft Mobile Explorer: This full-featured compact and efficient Internet Explorer browser provides valuable access to the wireless Information Highway.

(e) New Power Management: Fast and reliable power management architecture ensures no backup battery is needed, and that rapid startup and shutdown can be done without data loss.

(f) New Customizable Developer Tools: Windows CE for Automotive 3.5 provides developers with flexible, scalable building blocks from which they can choose from a variety of APIs such as ActiveX Controls and Visual Basic, to create low-end to high-end applications based on car manufacturer requirements.

(g) Improved Graphics: High-performance features include faster graphics drawing, mapping API and DirectX support. Also included is GDI-Sub, a high-performance feature for the most demanding graphics applications, such as navigation applications.

Who are some of your partners that you are currently working with?

Microsoft and Accenture announced on January 10, 2002 they are working together to accelerate the industry’s ability to cost-effectively implement and maintain advanced automotive telematics solutions. The announcement, made at the North American International Auto Show, further advances the companies’ existing relationship.

Other partners include: Aisin AW Co. Ltd., Borg Instruments, Clarion Corp. of America, Delphi Automotive Systems, DENSO, Mitsui & Co. Ltd., NexTech Co. Ltd., Robert Bosch GmbH, Siemens VDO Automotive, Visteon Corp. and XanaviCorp. In addition, European automaker Citroen has been shipping a Windows CE for Automotive-based device, the Citroen Auto PC, for over a year.

Are there other areas that Microsoft seeks new partnerships and alliances?

Car.Net calls out a client, server, and services architectural framework, as such it is an open platform supported by third parties contributing integration, consulting, and operational support services as well as software applications and hardware implementations for the in-vehicle device. Microsoft supports and encourages industry wide participation to bring value added solution to market. For instance, the Japanese Windows CE for Automotive development forum has currently a membership of 87 automotive industry players in Japan; from carmakers to tier one and two suppliers to software developers and telematics service providers.

What are some of the barriers that you anticipate in a telematics implementation?

A common barrier in the market comes when companies run up against the complexity of implementing a telematics solution. Telematics services are yet another flavor of mobile services. Service providers must leverage the most ubiquitous computing and communications platform: the Web. As such, the infrastructure deployed must be able to Web scale.

How do you expect to overcome these barriers?

A successful execution. This requires an end-to-end approach including: attention to both current and future customer needs, implementing a client-server architecture that includes a comprehensive family of products, built on vendor independent Internet standards such as XML and SOAP. Microsoft Car.Net supports each aspect of solution design and delivery: development tools; server technologies; and rich user experiences leveraging smart clients and consuming XML Web services.

Partnerships. Microsoft recently partnered with Accenture to form an end-to-end telematics solution that seeks to remove the complexity of a successful telematics implementation. There are two integral components to the joint offering:

1. Microsoft’s Car.NET technology

2. Accenture’s Services Bureau for Automotive Telematics

Together, with Microsoft’s deep technology background and Accenture’s service integration expertise, the two companies are stitching together elements that have been a challenge to their customers. This partnership extends the offerings each company has been providing the automotive industry for the past several years.

How do you see the telematics industry evolving?

Telematics will have a transformational effect on driving, the design and assembly of vehicles and the nature of services targeting the driving community. While delivering services to drivers differs in detail from the design and delivery of mobile services in the broader sense, it shares at least one fundamental characteristic therein: it must contribute to an integrated and connected lifestyle. The PDA market illustrates the point. Few customers would consider purchasing a PDA that did not share, at least, contact and schedule information with desktop applications. The analogy can be taken further. Before long, it will be more accurate to say that cars are “docked” in the garage. While docked, they will seamlessly communicate with the home or office sending and receiving a variety of personalized digital content.

What can we expect to see from Microsoft and when?

The Automotive Business Unit at Microsoft has invested half a decade to provide the automotive industry with great software that delivers information, entertainment, communication and services in vehicles. The company will continue to work very closely with top automakers, automotive electronics manufacturers and consumers to develop its telematics solutions.

Momentum for Windows CE for Automotive is growing. Microsoft recently hosted its second Windows CE for Automotive forum in Japan and it now has 87 member countries, from carmakers to automotive suppliers and ISV/IHVs. Windows CE for Automotive is rapidly becoming the platform of choice for in-car computing worldwide.

The most recent news from the Automotive Business Unit is a partnership with Accenture. The two companies are joining forces to accelerate the industry’s ability to cost-effectively implement and maintain advanced automotive telematics solutions. Based on Car.NET, Accenture and Microsoft are working together to build out this solution with partners such as MSN and have several interested prospects.

Microsoft is listed in Telematics Updates’s upcoming Telematics Business Directory. If you would like to list in our directory, contact Vincent Lau (vincent@telematicsupdate.com). Listing is free to all Telematics Update subscribers.


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