Microsoft At CES 2017
In the 2017 Consumer Electronics Show (CES) which took place in Las Vegas between January 5 to 8, several car makers emphasized the use of Microsoft’s Connected Vehicle strategy. Microsoft’s strategy is to connect cars to the company’s cloud services like Azure and Office 365. In the show, Nissan CEO Carlos Ghosn reiterated the company’s previous announced strategy to use Microsoft’s cloud services for navigation, remote car monitoring, and predictive maintenance. According to Mr. Ghosn:
“On connected cars, which combine Nissan Intelligent Driving and Nissan Intelligent Integration, the Renault-Nissan Alliance is continuing its partnership with Microsoft to build the next generation of connected car technologies. The keynote included a demonstration of how Microsoft’s personal assistant technology Cortana can make driving more efficient and seamless. Cortana is one of the technologies that the Alliance and Microsoft are exploring together.”
Also at CES, BMW, the luxury vehicles company said that it would partner with Microsoft on Azure services for its connected cars. According to BMW:
Voice-controlled capabilities already offered by Microsoft Cortana on a home PC or smartphone could in the future also be available on board a BMW vehicle.”
In addition, Volvo said that it would add Microsoft’s Skype for Business applications to Volvo’s new 90 Series cars. Volvo’s agreement with Microsoft also covers the use of Cortana to add contextual insights and voice recognition to anticipate the needs of the drivers.
All these developments will benefit the company since other vehicle manufacturers, realizing the advantage of the use of Microsoft’s Connected Vehicle strategy to drivers, will probably also partner with Microsoft to use the strategy in their new car production.
Although Microsoft Corporation (NASDAQ:MSFT) has significantly outperformed the market in the last few years, in my opinion, the MSFT stock still has room to grow. Microsoft has strong growth drivers; the cloud computing revolution has opened high growth opportunities for the company, and it could gain market share and increase revenues in its gaming division by introducing virtual reality and augmented reality in gaming. Also, Microsoft’s Connected Vehicle strategy is very promising, and other car makers might follow Nissan, BMW, and Volvo to use Microsoft’s strategy in their new car production.
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