Analyst expects Microsoft to win telematics race

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Nov. 08, 2004

According to a recent research bulletin from Forrester Research, automotive telematics has failed to live up to expectations as a result of "underfeatured, overpriced, and out-of-date technologies." But, according to Forrester, new devices and developments showcased at the recent Convergence 2004 conference "offer hope that the age of safer, more convenient, more entertaining, and affordable vehicles is finally here."

In particular, Forrester notes that Microsoft's latest automotive offerings "[meet] consumer expectations of functionality, ability to upgrade, and cost, while meeting auto engineering's demand for safety, ruggedness, and integration." The group suggests that "OEMs should integrate the Microsoft TBox as a consumer-configured ingredient brand and develop a strategy that links telematics data with dealer systems."

TBox is reportedly a Microsoft-developed computer-based telematics platform that will connect mobile phones, PDAs, laptops, and other portable devices in the car to various local and remote networks. Microsoft considers the worldwide automotive market -- with over 650 million cars and 50 million new ones produced each year -- to be comparable to the desktop PC market in terms of its potential for deployment of Microsoft operating systems. Last year, Dick Brass, the vice president of Microsoft's automotive business unit, was quoted by the Associated Press as saying, "We'd like to have one of our operating systems in every car on Earth."

Forrester's just released five-page research document, "Why Microsoft Will Win The Telematics Race," is available for purchase on the company's website.

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