Ford Partners With Microsoft to Develop Connected Car Services

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Mar 23, 2015

Ford Motor (F, Financial) is planning to expand its connected car services in collaboration with long time technology partner Microsoft (MSFT, Financial). The automaker wants to make software updates to its car infotainment system by using Microsoft’s cloud service. Ford had first teamed up with the Redmond giant years back to introduce the initial version of Sync, a system which is now present in more than 7 million Ford and Lincoln cars.

Despite its long term relation with Microsoft, the carmaker shifted to Blackberry (BBRY, Financial) a couple of years back as the early Sync version had technical problems. Ford received several customer complaints and joined forces with Blackberry. However, this doesn’t mean that the Detroit automaker has severed ties with Microsoft. Ford’s latest arrangement with Microsoft to develop a new Cloud-based network shows that there’s a lot that the two could do together in the automotive space.

About the partnership

Ford said that Microsoft’s Cloud-based network would enable it to put in new programming to update software in its cars, right from the display screen graphics to voice recognition. The carmaker wants to enhance the entire user experience in the future by expanding connected services using the Ford Service Delivery Network. This is precisely what the company aims at through its partnership with Microsoft Azure Cloud infrastructure –Â creating new ways of customer interaction with cars.

The service would keep users better updated about the car by increasing control features such as vehicle finder, scheduled remote start and vehicle status that would inform car owners about the status of fuel, charge and tire pressure. This is a strategic move made by Ford to be up to date with technology and making car handling easier for consumers while they move to increased cloud based services.

The Cloud-based service will help Ford collect data regarding how owners use the vehicle. This will help the company understand the experience users are having in the car. More importantly, the wireless data that Ford will collate will help in diagnosing any technical or mechanical problems that the car may have. It would also alert both owners and dealers regarding maintenance requirement, if any.

Ford declined to comment when asked if the company was working to develop a communication service similar to domestic rival General Motors’ (GM, Financial) OnStar. The Blue Oval is not the only carmaker using the Azure platform. Toyota (TM, Financial) had also announced a cloud service partnership with Microsoft using Azure around four years ago.

Keeping up with competitors

The connectivity service shall be rolled out this year with Ford’s Sync3 multimedia system. The latest generation service will be made available on some of Ford’s 2015 models, which would be expanded to the rest of the automaker’s lineup by the end of next year, according to Don Butler, Ford's executive director of Connected Vehicle and Services. The carmaker’s strategy to provide such updates coms at a time when other players are finding new ways to integrate mobile connectivity to improve a car’s safety by detecting potential problems without having to take the car to a repair shop.

Tesla Motors (TSLA, Financial) already provides embedded wireless connection that updates the system over time which enhances the performance of the car and improves the overall driving experience. General Motors is also looking to integrate Wi-Fi hotspots. The top U.S. automaker said last year that it would introduce 30 new cars that would gave built-in 4G LTE connection. The automaker aims to widen its car communication system and improve safety and navigation system.

It’s therefore important for Ford to step up to enrich its service using the latest technology. The company’s move marks its attempt to constantly update its offerings with the fast-moving technology space.