Three weeks after the dramatic announcement from Nokia of its partnership with Microsoft and a shift to Windows Phone 7 as the preferred OS platform for its mobile phone business, kinder gentler thoughts in the marketplace regarding the prospects for the partnership are beginning to prevail. Having regrouped to put its own spin on recent events the head of Nokia’s automotive team recently pointed out the advantages of the Microsoft partnership in support of Terminal Mode and ongoing activity within the Qt developer community in support of both MeeGo and Symbian.

 

While it is true MeeGo has been significantly de-emphasized and Symbian will be phased out – after 150M more Symbian phones are shipped – Nokia Navteq remains an active player in the automotive marketplace focusing on opportunities for mobile phone connectivity and navigation. Post-partnership the combined organizations, while separate, represent a force to be reckoned with. The powerful search platform of Bing along with Navteq’s maps and Ovi’s marketplace represent a triple threat in a market where mobile advertising and mobile commerce are rapidly emerging around the world in cars and on devices.

 

The challenges facing the Microsoft-Nokia Navteq partnership are significant. The Windows Phone 7 platform is just four months into a slow start in the market and Microsoft has not defined a clear synergistic connection between Windows Phone 7 and Windows Embedded for Automotive 7. Microsoft can point to several successful mobile phone connectivity partnerships in the automotive market – such as Fiat, Kia and Ford – but most of these are built around different versions of Windows Auto or Windows CE.

 

Microsoft can also point to head unit partnerships with Mitsubishi Electric, Clarion and Alpine in support of Mercedes and Nissan. In fact, Alpine and Clarion have already endorsed and adopted terminal mode for enabling smart phone connectivity to access maps, music and for enabling map-based safety applications. While no one in the industry expects Apple to endorse and deploy terminal mode connectivity, makers of Android-based handsets and RIM may find it prudent to make terminal mode technology available.

 

Helping to make terminal mode connectivity more attractive, Nokia Navteq is stepping up its Ovi Marketplace game adding search now powered by Bing along with Navteq’s mapping, graphics, turn-by-turn navigation, geo-coding and reverse geo-coding to facilitate local commerce opportunities around the world. Created in conjunction with the CE4A industry consortium, terminal mode has been demonstrated by Volkswagen engineers – reflecting the company’s strong ties to German car makers. Nokia is looking to build on its Japan market inroads with a (now cancelled) Terminal Mode Summit in Tokyo late in March where the official Terminal Mode trademark will be launched (http://www.terminalmode.org/en/Events/registration) along with release 1.1 and a future release roadmap.

 

Almost lost in the Microsoft Nokia Navteq announcement was the impact on the Qt developer community and the de-emphasis of MeeGo. Qt and MeeGo continue to go hand and hand in the open source developer world and MeeGo continues to boast support from Intel and the now-fairly-large GenIVI Alliance (which will be gathering in Dublin in May). As car makers look to deploy application stores to support embedded solutions expect the GenIVI Alliance to strongly advocate for MeeGo as the ideal OS platform choice.

 

MeeGo stacks up as a strong alternative to Android or iOS for in-vehicle app stores. While Windows Embedded for Automotive and QNX are candidates, MeeGo’s candidacy is made stronger for being a cross-carmaker open development platform. And Qt is something of a wild card for MeeGo as a source of developer support.

 

Support for MeeGo has been years in the making. The Microsoft-Nokia announcement was not greeted warmly by Intel executives and received with some dismay by GenIVI members. Intel eventually announced its intentions to forge ahead undaunted in multiple device markets – including automotive. A week after the announcement, the MeeGo element of the announcement has been relegated to a sidelight with no impact on MeeGo’s or GenIVI’s longterm objectives.

 

In the end, Microsoft and Nokia Navteq are in position to have a significant influence over automotive infotainment systems, mobile device integration and in vehicle content/service/application delivery and mobile commerce. Now it is up to the two organizations to prove out the on-paper value proposition in the marketplace.

 

Additional Insight:

 

http://bit.ly/dLXz1v - Terminal Mode at Forefront of Connectivity, Competition Closing in - Insight - Roger C. Lanctot - Automotive Multimedia & Communications Service

Both Cairo and Espoo witnessed revolutions on Friday, Feb. 11^th. Mobs in the streets of Cairo saw the 30-year reign of Hosni Mubarak come to an end and Espoo saw global handset market leader Nokia embrace the smartphone platform of rival Microsoft. While Egyptians have been left to sort out what their nearly bloodless military coup hath wrought, the open source community surrounding Nokia’s now cast-off platform is assessing the long-term prospects for MeeGo and the Qt developer framework.

The implications for the automotive OS world are yet unclear.

Nokia says the first device using MeeGo is still in the works and will arrive later in 2011. Absent from any public statements at the announcement of the partnership with Microsoft was the statement of a plan for supporting MeeGo as the open source OS choice of the automotive GenIVI Alliance.

By the end of the day, crowds in Tahrir Square in Cairo were setting off fireworks and celebrating deep into the night as Mubarak made his way to the resort of Sharm el-Sheikh. Meanwhile, executives involved in the Qt developer community suggested, by Friday evening, that there was no change in their plans as a result of the Nokia-Microsft announcement. Intel made a belated statement of support for MeeGo:

“Our strategy has always been to provide choice when it comes to operating systems. MeeGo is one of those choices. We support a port of choice strategy that includes Windows, Android, and MeeGo. This is not changing.

“MeeGo is not just a phone OS, it supports multiple devices. It is already shipping and we’re seeing early momentum across multiple segments today, including automotive systems, netbooks, tablets, and set-top boxes.”

Operating system momentum in the automotive industry is slow to build and slow to dissipate. By now, MeeGo and GenIVI indeed have momentum. But there is no doubt that the Nokia announcement was NOT good news for either MeeGo or GenIVI. Both MeeGo and Mubarak were clearly “thrown under the bus.” (Perhaps it is more accurate to say Symbian was thrown under the bus, but MeeGo was clearly de-emphasized.)

In the short-term, the Nokia-Microsoft announcement is a minor blip on the automotive OS radar screen. Longer term, industry executives will watch closely to see the impact on developer support. If Stephen Elop learned nothing else from his time with Microsoft CEO Steve Ballmer (http://bit.ly/qiASt) it is the power of developers.

Qt and MeeGo both have already attracted legions of enthusiastic developers. Elop’s handling of the announcement reflected a cultural disconnect between an executive coming from outside the open source world taking the helm at a company steeped in the rich broth of open source solutions including Symbian, MeeGo and Qt.

While there is no doubt that the open source community failed to deliver the competitive edge Nokia needed, the company might take better care that it is not throwing out the baby with the bathwater. Nokia must decide whether it can support both the open source community and Microsoft’s Windows Mobile 7.

It is worth noting that no one in the industry is questioning Google's commitment to Android.

Conclusion:

Strategy Analytics expects a strong statement of support from Nokia for Qt and MeeGo at this week’s Mobile World Congress. A late statement of commitment and support is better than no statement at all. The legions of developers around the world that are bringing energy to those platforms – which are NOT in flames, to use Elop’s analogy – would benefit from a strong endorsement equivalent to the one given by Nokia to former rival Microsoft.

GenIVI will likely forge ahead with or without MeeGo over the long haul. As an open source platform, GenIVI has the flexibility to shift to a new distribution of Linux if necessary. The ship has already sailed and there is no turning back. It’s just not clear that Nokia is on board. And the company is certainly not at the helm.

Additional insight:

http://tinyurl.com/4m3rm73 - Nokia Tosses the Car Keys to Microsoft - Insight - Automotive Multimedia and Communications Service

Microsoft intends to clear the air at Convergence in Detroit this week with the launch of Windows Embedded Automotive 7.0, the merged automotive operating system that takes the place of MS Auto and Windows Automotive – in all their versions. An earlier version of the OS, Windows Embedded Automotive, will be featured in the information hub in Nissan’s Leaf electric vehicle, according to Microsoft, and will be joined in the spotlight by Silverlight for Windows Embedded, Microsoft’s alternative to Flash. Also highlighted at Convergence by Microsoft will be Fiat’s plans to bring the Fiat 500 to the U.S. along with its Blue&Me 2.0 (not it's official name) interface with support for the iPod. Ford and Kia will likely be making announcements related to their Microsoft implementations and Microsoft noted its participation in 12 different device platforms over the next 12 months from a number of different car makers reflecting the company’s continuing commitment to the automotive business. The announcements and enhanced presence at Convergence concludes multiple reorganizations at Microsoft which saw the departures of senior executives on the automotive team and a consolidation of all embedded activities under a Server and Tools group. Existing OEM and Tier One partners with Microsoft solutions include Ford, Fiat, Chrysler, Kia, Mercedes, Honda, Nissan, Alpine, Mitsubishi, and Clarion. Microsoft will use Convergence to demonstrate various Silverlight development tools for handling prototyping and to accelerate testing within the development and approval process while allowing OEMs to create executable specifications for suppliers. Tools will also be shown for a thread priority-based tuning system that allows for handling and logging errors during development. Microsoft will also highlight advances in its Tellme embedded speech product, currently being deployed by Kia in the Uvo. The new recognizer can handle eight languages with speaker independence while providing for the tuning of recognition for individual users. Also new for the embedded Tellme is an SMS reply function capable of performing fuzzy logic matches to a set of predetermined responses. Separate from the Convergence activities, Microsoft is pursuing automotive opportunities for its Bing search engine as well as for Tellme as a server-based voice recognizer. Both the Ford and Fiat Microsoft solutions provide for application downloads and updates, though Microsoft has not created its own automotive app store model. The Nissan Leaf information hub is the most significant of the announcements at Convergence. The hub will handle navigation, charging, radio and HVAC functionality in the car. The hub implementation suggests the potential for a wider Microsoft engagement with both Nissan and Clarion. As Nissan moves closer to realizing its connected vehicle vision outside of Japan, the company can be expected to move beyond its current reliance on VxWorks. Conclusion: Microsoft remains a credible alternative to QNX and the various versions of Linux distributions in the automotive industry. The MeeGo operating system created from the merged elements of Nokia’s Maemo and Intel’s Moblin platforms and adopted by the Genivi Alliance is not expected to be available in even a beta version until April 2011. Some Genivi members say an automotive version of the OS may be out before the end of the year. Google and its Android operating system continue to flirt with the automotive industry – playing hard to get. Google is interested in the automotive industry for the emerging search-related opportunities and for the potential to sell traffic and cloud-based location-aware applications, but the company still refuses to certify or support Android for embedded use. In spite of Android’s orphaned status in automotive, Continental and Parrot continue to carry the flag, secure in the knowledge that Android can still claim the largest and fastest growing developer community – key to unlocking app store opportunities. Microsoft’s step by step, implementation by implementation, customer-focused approach has left some customers and potential customers scratching their heads about the company’s long-term commitment to automotive. The headquarters reorganizations continue to raise questions, and yet Microsoft forges on, enhancing and refining its solutions and adding to its portfolio. Just the past year has seen Silverlight and Bing added to the mix along with Tellme. After years of wavering it appears that Microsoft has finally taken its vows and accepted its automotive market responsibilities. By now, the company has learned that the automotive contest is not always won by the swiftest, but by the supplier with the most staying power – and it looks like MS is in for the long haul. Further insight: Smartphone Market Evolution and the Automotive Opportunity Implications – Mark Fitzgerald – Automotive Multimedia and Communications Service - http://tinyurl.com/34hldb5 Automotive Connectivity: Beyond Bluetooth Solutions – Mark Fitzgerald – Automotive Multimedia and Communications Service - http://tinyurl.com/2gx88eo

The latest salvo from the Genivi Alliance – a SWOT analysis of competing automotive operating systems – appears to cloud rather than clarify the existing automotive OS market environment. The future prospects for current and emerging players are described with little supporting evidence or insight. The report also concludes – from OEM and supplier interviews – that the Alliance’s assumptions regarding cost savings are valid without providing a detailed financial analysis of where cost savings may be achieved – ie. head count, lines of code, etc. Not surprisingly, the self-serving report concludes that Genivi will rule the market in the long term with deployments beginning in the 2013-2015 timeframe (http://tinyurl.com/29aly2t). The report initially sets out to provide a thumbnail view of current OS market leaders Microsoft, QNX, MicroItron, Linux and Android. Going without mention are Mentor Graphics, Ubuntu, OpenSynergy, Meego or even VxWorks (currently used by Peugeot-Citroen, Nissan and Volkswagen). Also missing entirely are Genivi members MontaVista and Wind River. Ostensibly, the goal of the report is to benchmark and/or handicap these various infotainment software architectures and their influence on in-vehicle infotainment systems; and to validate the cost savings claimed for Genivi’s code-sharing/recycling model. Missing is a detailed description of the actual software architectures themselves – ie. what makes one “better” than another. What is available in the report summary seems misleading such as a reference to Microsoft Auto booting slowly, which is also a shortcoming of Android, but which is also easily overcome. Also missing is a discussion of current market forces, strategic supplier relationships, recent mergers and acquisitions or potential mergers or acquisitions. The absence of these latter aspects means that Intel’s acquisition of Wind River goes without mention as does the merger of Intel’s Moblin platform with Nokia’s Maemo OS to create Meego – rumored to have been selected by Genivi as its infotainment platform of choice. (Press and Nokia reports have quoted senior Genivi representatives stating that Meego has been chosen for this purpose - http://tinyurl.com/2d46xls. No affirmation of this selection has come from any Genivi member other than BMW.) MontaVista’s acquisition by Cavium Networks and QNX’s purchase by RIM gets no attention in the report. Neither does TomTom’s decision to adopt the Webkit OS, a platform found in other segments of the mobile market such as Palm’s Web OS. (The report fails to note Bosch’s adoption of Linux or Visteon’s embrace of Genivi, Microsoft, QNX AND Ubuntu – hedging its bets.) These oversights are more significant than they seem as they suggest a lack of awareness of the symbiosis between mobile device operating systems and automotive hardware and software architectures. Additionally, the report repeatedly refers to “risk-averse” Japanese OEMs and tier one’s being hesitant to adopt open, Linux-based platforms – including anything from Genivi to Android.  This assertion is patently absurd given Clarion’s longstanding support of Linux. The report also paints a grim picture of QNX’s market outlook, suggesting the company’s app support is “difficult to configure” and that the company can be expected to withdraw from the IVI market entirely within a short period of time. This will no doubt be news to executives at QNX’s Ottawa headquarters where headcount committed to automotive projects is on the rise as are design wins. And the acquisition of QNX by RIM opens doors to automotive-related IP (ie. traffic apps) while adding access to a massive and growing installed base (ie. probes). Unlike all of the alternatives currently in the market, QNX currently offers a range of flexible, scalable solutions future proofed to support Adobe Flash, HTML5, Flash Air and Flash 10.1 and all mobile OS's. QNX is customer friendly with support unmatched by Linux-based competitors or Microsoft. By way of contrast, OEMs implementing Microsoft are finding they must enlist the aid of third-party developers (bSquare, Elektrobit, etc.) to customize Microsoft Auto to their requirements. Microsoft has left application development entirely to its customers and their partners. It is worth noting as well that QNX’s flexibility is an advantage vis-à-vis Microsoft. Where QNX supports nearly every potential application or implementation known to automotive engineers without favor, Microsoft is likely to push its Bing search engine, Silverlight graphics and other in-house offerings. The report notes that the next generation Microsoft IVI platform, Motegi (Windows Automotive Embedded 7), will launch with Japanese OEMs, though it provides no time frame. Microsoft indeed has at least two partners in Japan – Alpine and Mitsubishi – which suggests that either Honda or Mercedes may be implementing Motegi. The report neglects to mention QNX’s recent gains in Japan, including Panasonic and Denso, showing a deeper penetration of QNX into Toyota. In fact, QNX has benefitted handsomely and rapidly from its separation from Harman – immediately attracting attention from potential Japanese and Chinese customers. Where QNX is weakest is in developer support. This is precisely where Android shines. The report summary correctly identifies existing developers working on automotive Linux implementations – ie. Parrot, Continental and Roewe – and identifies the inclination of many designers in the industry to connect with Android but to keep it out of the central stack. The report also notes Google’s disinclination to support or endorse Android for automotive implementations, but leaves the door open to an embedded future for Android. (GM is thought to be considering an open platform such as Meego or Android for a future OnStar or infotainment launch.) But this points up a fundamental gap in the report, which is the wider context of the OS debate. Android and Genivi do not line up directly with QNX, Microsoft or Linux (pick your distribution). Genivi has always been positioned as a code sharing platform for infotainment systems - as such it has never been presented as a replacement for Microsoft or QNX. Android, similarly, is being pursued as an alternative for ultra-low-cost (entry level) platforms - typically those emanating from India and China - as well as a means for implementing revenue sharing models based on mobile applications in the car. The new Genivi report marks the first time the Alliance's platform is proposed as a replacement for QNX or Microsoft or any other OS, indicating a change in strategy for the group. This is where the group may be overreaching. Presenting Genivi as a one-for-one substitute for existing real-time operating system solutions is a different proposition from offering a code-sharing/recycling platform intended to reduce development costs. Obtaining industry buy-in to this vision will take 5-10 years, by which time the market may well have moved on to the next big thing. And as an industry coalition-driven solution, Genivi arrives untested in the marketplace. The report further attempts to validate Genivi’s vision for cost-reduced platform development, saying interviewees estimated IVI deployment cost savings of up to 50%. At the same time, though, the report acknowledges that initial implementations may cost even more than incumbent solutions. Justifying or validating proposed Genivi cost savings will continue to be a tall order for the Alliance. Conclusions: The Genivi Alliance’s IVI software architecture report provides valuable insights but is rife with glaring omissions, unsupported conclusions and errant assumptions. The report oversimplifies the automotive OS ecosystem and competitive environment and underestimates the influence of some incumbent players, such as QNX, and the emerging role of content and service aggregators including TeleNav, Inrix, Airbiquity, WirelessCar, TCS, ITIS Holdings, Navteq and Hughes Telematics. A few of these content and service providers were interviewed for the report. But not a single telecommunications carrier or handset maker – outside of Nokia - was interviewed. Even more obvious than these omissions, however, was the exclusion of both Audi and the e.solutions joint venture with Elektrobit - the single most prominent, influential and competing IVI platform in the industry. The oversight is obvious and unfortunate. The forces that are determining the future of the automotive IVI experience are almost entirely developing outside of the car, so a wider base of interviewees should have been considered. The single greatest weakness of the Genivi Alliance is its inward focus on the automotive industry as opposed to an outreach to the wider world of mobile devices and consumer electronics. It is possible for Genivi to “win” in the long run and “challenge” (in the report’s own words) Microsoft, but the Microsoft embedded solution will always have the advantage of developer support from across a broader range of industries and the design priorities that those other user communities will contribute. Genivi’s narrower focus is at once its greatest strength but, in the end, its Achilles heel. <!--[if !supportLineBreakNewLine]--> <!--[endif]--> Further insight: Smartphone Market Evolution and the Automotive Opportunity Implications – Mark Fitzgerald – Automotive Multimedia and Communications Service - http://tinyurl.com/34hldb5 Automotive Connectivity: Beyond Bluetooth Solutions – Mark Fitzgerald – Automotive Multimedia and Communications Service - http://tinyurl.com/2gx88eo

Porsche is changing horses in the stolen vehicle recovery department, opting for Autotxt’s stolen vehicle recovery solution for the 911, Boxter and Cayman, according to industry sources. The change may be coming as a result of Autotxt’s new architecture which enables a single electronic control unit (ECU) to provide a wide range of vehicle diagnostic and remote control capabilities in addition to vehicle tracking. An official announcement is expected later this week. This single ECU solution from Autotxt has the potential to transform the relationship between the driver, the smartphone and the car, providing an enhanced opportunity to sell stolen vehicle recovery systems in the context of a low-cost smartphone-based telematics application. The technology has implications for customer and dealer relationships as well as for broader branding and marketing purposes. It also creates a new path for app distribution to drivers. Finally, the announcement shows Porsche taking one step closer to the inevitable introduction of telematics. Porsche has had a telematics system in place, ready to launch, for many years. The choice of Autotxt move the company that much closer to that decision while providing an in-place solution to satisfy the European eCall mandate. The Autotxt solution for Porsche - which will supplant the existing offering from Cobra Automotive - provides for both reactive and proactive stolen vehicle notification and recovery. In the reactive mode, the vehicle owner must notify the service provider, Autotxt, when the vehicle has been stolen. In the pro-active, or early-warning, application, the service provider is notified of any unauthorized vehicle movement at which point the driver is contacted. The Porsche application – which is a dealer install - may also offer the same functionality provided by Autotxt for Jaguar Land Rover and Aston Martin. Those implementations use the driver’s Bluetooth-enabled phone as the driver identification tag. Alternatively a keyfob can be provided. The system allows for up to seven Bluetooth driver IDs. Porsche is still evaluating this provision. The Autotxt offering is unique in the flexibility of its ECU. Like other modules coming into automobiles for related tracking, tolling and telematics applications, the Autotxt device is deeply embedded in the vehicle with access to the controller area network (CAN) codes. Autotxt expects to make available by Q2 2011 a smartphone application for remote vehicle control and diagnostics. Autotxt executives expect to be able to provide remote control functionality including remote activation of heating and air conditioning, windows, door locks and remote starting along with data logging and vehicle diagnostics. The multifunction ECU, therefore, can become an event data recorder as well as an eCall or bCall platform while also gathering and distributing data on overall vehicle operation available to either the driver or the dealer or both. The device could also handle trip reporting, battery status for electric vehicles and a wide range of location-aware applications. In this way, the car maker retains control of the in-vehicle connectivity experience in contrast to the widely reported terminal mode approach of conveying the smartphone HMI into the car. Autotxt expects to have versions of its system available for Android and other platforms by the middle of next year. The Porsche deal is global in scope as are the implications of the ongoing Autotxt development activities.

While people are using mobile phones for a wider range of functions than just making phone calls, such as remote vehicle access and microtransactions, it is not likely that anyone will ever replace their vehicle key fob entirely with a smartphone application. With that in mind, Delphi has introduced a Smart Key Fob that uses near-field communication (NFC) - for systems intended to be used in Europe or Asia where NFC is more widely implemented, Bluetooth and UHF technology to provide drivers with remote access to vehicle information while helping to ensure the security of the data exchange.

The “key” advantage of the Delphi solution is that it provides for application to vehicle data and vehicle control and status access without the need for a cellular subscription. For this reason, the company has positioned the Smart Key Fob as a low cost solution to vehicle connectivity. The Delphi-implemented NFC solution and Bluetooth connectivity offers, secure information transfer from the fob to the phone with a low power consumption mode and a low-range communication profile – only 2 inches (5 cm) for NFC – that helps prevent hacking. The company says the data exchange is made possible with modules integrated in the vehicle. The UHF system antenna enables data transfer from the vehicle to the key fob with a range of more than 650 feet, and the transferred information can be accessed by the driver via any NFC-compatible portable device that has an active display such as a smartphone. Data that can be accessed and managed includes mileage and fuel level, safety and security information (such as tire pressure, door or window open or closed status, etc.), maintenance warnings and alerts, personalization features (seat, steering wheel, A/C configuration), vehicle location (via GPS), driver identity, in-case-of-emergency (ICE) contacts and vehicle type. Of course, the onset of electric and hybrid vehicles only intensifies the potential interest in Delphi’s low-cost solution as drivers will need to remotely assess vehicle charge. The complete roster of accessible applications for the fob-to-smartphone system includes: Enhanced command/control of all vehicle functions Notification of vehicle security and diagnostic alerts Vehicle finder Pre-trip remote vehicle setup Diagnostics Eco-scores Driving history/patterns Linkage to OEM Web portals Automatic opt-in marketing data on vehicle usage and driver preferences Control of vehicle functions remotely with graphical confirmation (e.g. doors, windows, engine start, HVAC, seat, navigation, audio) Reconfiguration of vehicle preference settings easily and remotely Delphi says the marketing propositions for the system include branding opportunities through the phone app and connected Internet portal and the opportunity to establish opt-in marketing programs to automatically collect driver usage data. Delphi has shown the solution to some OEMs, but has yet to announce a platform win. Further Insight: http://bit.ly/cPilqP - Advanced Entry and Start System Supply and Fitment Database – Mak – Strategy Analytics http://bit.ly/prpYX - Vehicle Entry and Go: Passive Systems Set to Challenge RKE – Mak – Strategy Analytics

SYNC sells. Ford’s SYNC connectivity and infotainment system, built on the Microsoft Windows Embedded Automotive software platform, has reached the 2 million unit sales mark 10 months after Ford delivered its 1-millionth SYNC-equipped vehicle in 2009, the first SYNC systems were delivered in fall 2007. SYNC’s evolution is paralleling the consumer’s evolution in a connected world. Ford’s latest version of SYNC that debuted at CES 2010 presented a solution dubbed MyFord Touch, which truly shows the convergence of consumer electronics and the automobile. As consumers interact with the web and media devices with more regularity each year, Ford seeks to help the consumers replicate this behavior in the car. Examples include:

• Consumers have apps stores for their smartphone; Ford opened a market for car apps.
• Consumers have come to value internet radio, twitter, and social networking sites; Ford has worked with Pandora, Twitter, and Stitcher to make automotive applications.
• Consumers have become accustomed to being able to record and rewind live TV, Ford had come up with a solution where Sirius XM can be recorded and played back.
• Consumers are used to 5 way controls popular on iPods and numerous other consumer devices; Ford has employed similar technologies in its HMI.
• Consumers often look up driving directions while in front of a computer, SYNC users can now send MapQuest directions to their cars and the SYNC system will navigate the driver to their destination.
• Consumers like shopping at iTunes, users can now tag songs for purchase through HD Radio and the SYNC system.

SYNC adds value to vehicles. Ford data analysis indicates that SYNC-equipped models of the 2008 Focus are worth more than those without SYNC. After one year in service, the SYNC-equipped models sell for a $240 premium on average. This premium over a non-SYNC-equipped vehicle indicates consumer demand for SYNC is real. Ford has delivered the message to consumers that SYNC is a desirable product that makes the in-vehicle experience better and is worth a premium price. The upgrades to SYNC for the 2010 model year including the addition of MyFord Touch, Pandora, Twitter and Stitcher apps, iTunes tagging, mobile Wi-Fi hotspot capability, MapQuest directions and other features and applications indicate that Ford intends to protect its lead in the connected infotainment market despite competition from most every other vehicle OEM developing or offering competing solutions. http://media.ford.com/article_display.cfm?article_id=32262

With the statement: "Consumers want their devices to work together, so it is inevitable that single-vendor connected solutions will lose their interest," Pioneer's senior managing director, Akira Haeno has shoved a stake into the ground for the company's Platform for Aggregation of Internet Services (PAIS). Pioneer says this new content and services platform, set to arrive formally in mid-2010, will provide a seamless home/car/work experience for different content sources and services in conjunction with any connected device. The announcement opens doors to new market opportunities for Pioneer Electronics while also opening the company up to a new range of competitors that are already aggregating content and services. But Haeno's declaration is significant considering there are several connected devices that are otherwise closed to different content and service sources. A few that come to mind are devices from TomTom, Garmin, OnStar, and Apple. The ability to bridge all of these platforms will give Pioneer an advantage against rivals such as Airbiquity, Hughes Telematics or even UIEvolution. The PAIS platform presents open-standard interfaces for voice, navigation and maps, local search, social networking, music and radio and video and television, the company says. The interfaces enable the addition of new content and services without the added investment in proprietary solutions. Pioneer's solution is a direct challenge to the strategies of competing Tier Ones such as Visteon, Continental, and Denso among others, all of whom are offering to enable a wide range of applications. Even real-time operating system supplier QNX has had to race to deliver new application interfaces in support of its technology already deployed in 12+ vehicles. The Pioneer solution is based on Windows for Automotive and incorporates VoiceBox technology but is otherwise technology agnostic. The challenge for the content and service aggregators will be to demonstrate that their solutions are truly able to seamlessly and easily deploy new applications. Ford Motor Company and Mercedes-Benz are the first to reach the market with systems sufficiently flexible to deploy additional applications. Ford relies on smartphone connectivity, while Mercedes combines smartphone connectivity with a sophisticated back-end provided by Hughes Telematics. Ford has made a software development kit available, as has Continental for its Android-based systems. Mercedes has not released an SDK but company executives envision a day when Mercedes customers could create widgets or full applications. Competitors may see a tough choice in choosing to support or leverage the Pioneer platform, but the company is early enough to market to stake a credible claim and the solution will no doubt support Pioneer's own connected offerings.

Leveraging its TotalGuide interactive programming guide and Lasso and Connected Platform networking technology, Rovi is seeking to become master of all content.  The company wants to own the interface between the user of audio and video content and the process of discovering and acquiring that content regardless of source or device platform. At the CES show in January, the company was touting new content partnerships with Showtime Networks, ZillionTV and Rhapsody in the U.S. along with a list of European based firms.  Existing sources include CBS, Blockbuster, YouTube and Roxio CinemaNow.  Rovi’s technology is built upon, among other things, the growing metadata and user review databases of its own AllMediaGuide and partner Flixster, along with WideVine’s digital rights management solution.  The company claims more than 25 million U.S and 50 million worldwide households using its interactive programming guide which also serves as an advertising platform. While Rovi’s role in the automotive market is less obvious, the company is more than three years into a drive to resolve content and rights-related challenges to accessing media and content from multiple sources conveniently and legally on mobile devices and in cars as well as in homes. Rovi’s role in the automotive market is growing as in-vehicle device interfaces such as USB ports and Wi-Fi connections proliferate along with external connections via embedded modules or smartphones.  More content and media are being brought into cars and Rovi is coming along for the ride.  Current partners in the automotive segment include Kenwood and NXP. Rovi’s technology is also used by Apple’s iTunes store among many other online content sellers. Introduced late last year and currently available, Rovi’s automotive solution combines its Lasso and Connected Platformm technology for the automotive market and includes:

• Media Lookup: the ability to use Rovi's metadata library to identify, tag and manage digital content.
• Rich Entertainment Metadata: information on a variety of music and movies, supports multiple content types from CDs, digital files, DVD, Blu-ray Discs.
• Software Update: periodic updating of embedded databases via removable media or home network connectivity.
• Content Transfer: transfer of audio files and metadata to the vehicle from standards-based devices on a home network.
• Device Sharing: interoperability of portable devices via USB and standards-based connectivity.

To achieve the necessary connectivity, Rovi is supporting the Digital Living Network Alliance’s (DLNA) new guidelines for the service provider market that will enable consumers to play back and share commercial video and music across DLNA Certified devices. DLNA certified devices are proliferating in the PC (Windows 7), set-top box, TV, Blu-Ray, and mobile device markets, paving the way for smoother access to content from multiple sources. In the consumer electronics market, Rovi wants to become the default programming guide for the next generation of HDTVs, Blu-ray players and set-top boxes.  The importance of this effort is that the company is bringing together both in-home consumer electronics content access and mobile device access.  TotalGuide will integrate cable and broadband video content side-by-side, in a single unified interface in the home, but can be expected to deliver a similar solution in mobile environments. This means, Rovi will help enable the discovery and distribution of content, regardless of the delivery source or device platform.  And Rovi also has the user reviews and metadata from partners like Flixster to offer social recommendations for video viewing.  Competitors include Vudu, Boxee and TiVo, among others, but Rovi arguably has an edge with its unique combination of content, rights protection, metadata, and user reviews. And Rovi is the only player pursuing automotive opportunities.

Rovi’s rights protection technology comes from Widevine’s video optimization and DRM solutions.  Widevine is a provider of adaptive streaming, interactive DVD/Blu-ray and DRM technologies to Internet content services as well as cable, satellite and telecommunications companies.  Rovi says that by working with Widevine, consumers using its TotalGuide will be able to have access on their TVs to more content, such as movies and TV shows, from more providers.  At the CES show, Rovi showed its new Media Management content management solution.  Media Management helps manufacturers of PCs, set-top boxes, mobile handsets, and network-attached storage devices identify, tag and organize digital music, videos and photos by attaching descriptive metadata to the asset for easier filing and searching..