Can Automakers Really Cash In on Connectivity and Subscription Schemes?
A little over a decade ago, it seemed like everyone I knew was abandoning cable packages for online streaming services. They were cheaper, on-demand, and offered more choices with fewer advertisements. But as the years progressed, companies stopped selling their media to a handful of online video platforms and started building their own. Programming became more transient and isolated, forcing consumers to buy into additional subscription services. We’ve since hit a point where the overall consumer experience has diminished and grown more expensive, despite the steady influx of competition.
While automakers have been dabbling with subscription services of their own, their earliest attempts turned out to be such overwhelmingly bad deals that the public refused to play along. But they’re not giving up that easily. Industry players have been trying to figure out ways to charge customers indefinitely for years and are starting to settle upon subscription packages that can unlock hardware that’s already been installed into the vehicle or add software that can be downloaded via over-the-air (OTA) updates. Love or hate it, vehicular connectivity has opened up the door for new sources of revenue and businesses everywhere are eager to take advantage — with most companies projecting exceptionally healthy profits for the years ahead.
Going Android: Ford and Google Enter Six-year Data Partnership
On Monday, Ford and Google jointly announced a strategic, six-year partnership to accelerate the automaker’s connected vehicle and data service programs. Framed as part of Ford’s natural evolution into an information focused mobility firm, the release was loaded with corporate buzz phrases that we had to clean up. But the gist is that Ford would like to leverage Google Cloud for its products, meaning all future Ford models will be running Android operating systems starting in 2023.
This clears a pathway for improved integration from Google Assistant, Maps, Play, or any third-party applications catering to the incredibly popular OS. Unfortunately, it also highlights how gaga automakers are getting about data for the umpteenth time.
BMW Taps Amazon Cloud Computing for Data Lair [Updated]
On Tuesday, BMW announced it would be partnering with Amazon Web Services (AWS) to develop a cloud-based IT solution allowing it to integrate data and analytics into literally every aspect of the business “from vehicle development to after-sales services.” The automaker said data will now be shifted around liberally between business units and operations in over a hundred countries to help create a more fluid and responsive way of doing business. BMW to hire and train up to 5,000 software engineers in the latest Amazon tech to “empower” its workforce to manage the data.
Though some of that will be handled independently by artificial intelligence. Along with the physical construction of the necessary data hub, the company plans on certifying roughly 2,000 in machine learning and data analysis. If that sounds a bit technical and vague, just imagine BMW building Skynet from the Terminator films and actually getting some decent work out of it before it decided to exterminate humanity.