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The automotive market: Microsoft's next target

IT Industry - Strategy

Microsoft has taken a significant steps into the market for in-vehicle communication, information, entertainment and navigation products, teaming up with market leader Siemens VDO.

Siemens VDO and Microsoft say they will produce a new generation of automotive products "designed to meet the industry's growing demand for innovative, flexible and affordable solutions," and that by working together the two "will be able to deliver these advanced solutions to market much faster than the typical automotive industry's product development cycle."

Siemens VDO Automotive AG claims to be one of the world's leading automotive electronics and mechatronics suppliers, earning approximately 70 percent of its total annual sales of $US13.8 bilion in this segment

The first Siemens VDO product based on Microsoft software technology is expected to go into production as early as 2009. Future products are promised to include "navigation, high-end multimedia units and interfaces to connect portable electronic entertainment devices using the Microsoft software technology platform."

Microsoft claims that its expertise in software for multimedia, entertainment and communications solutions in combination with Siemens VDO's long years of experience in the development of in-vehicle multimedia and infotainment systems forms the ideal basis for collaboration. "The goal of this joint effort is to make it possible to optimally serve the requirements and standards of the automotive industry at any time."

They claim that, by using the Microsoft Auto platform, Siemens VDO will be able to fully concentrate on its key competences of system design, vehicle integration, driver assistance systems and safety systems. In addition, Siemens VDO will also be able to actively help shape Microsoft Auto and license platform-compliant applications, such as navigation functions, for third-party suppliers.

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