Cloud, Google snatches Ford from rival Microsoft
Google has signed a six-year deal with Ford that will bring Android technology to cars and cloud services to the company. A great blow for the Mountain View giant on rival Microsoft, the historic supplier of the car manufacturer
Google sprints on the cloud – lagging behind rivals Amazon and Microsoft – thanks to new Ford customer.
The two companies have announced a six-year partnership that will make the tech giant responsible for connectivity within the automaker's cars. In addition, Google will provide cloud services and other technologies.
The agreement provides that Ford and Lincoln vehicles will have Android, Google Assistant, Google Maps and Google Play starting in 2023, with Google's “cloud” allowing other types of services.
Google will also help Ford use artificial intelligence in logistics and manufacturing.
It should not be forgotten that the Dearborn, Michigan-based automaker had a deep partnership with Microsoft, which provided the foundation for Ford Sync technology.
There is therefore movement in the cloud computing market for cars.
Just two weeks ago, GM's self-driving subsidiary Cruise announced it would partner with Microsoft to accelerate the development of self-driving cars. Without forgetting the rumors about Hyundai , which could be the automotive partner to support Apple in the project of its high-tech electric car.
All the details.
A MULTI-YEAR PARTNERSHIP
Google and Ford announced on Monday a new partnership to bring Android Automotive to Ford and Lincoln cars, starting in 2023. But at the same time, the two companies also announced that Ford has chosen Google Cloud as its preferred cloud provider.
WHAT THE AGREEMENT IS WORTH
The deal is worth "hundreds of millions of dollars," Ford's new chief executive Jim Farley said, without providing specific data. Farley has kicked off a restructuring plan that markets have so far appealed to, as the stock on Wall Street has already grown about 60% since he took office in October.
According to Bloomberg , Google will receive revenue from cloud services and a license fee for Google apps and services for every Ford and Lincoln vehicle sold starting in 2023.
GOOGLE CLOUD PLATFORM SUPPLIER TO FORD
As we said, the agreement will make Google responsible for much of the automaker's growing on-board connectivity, as well as cloud computing and other technology services.
Google Cloud Platform will be Ford's “preferred cloud service provider” and the partners will form an innovation team called Team Upshift to work together on future projects, the joint note read.
THAT LEAVES MICROSOFT
As Bloomberg points out, Ford is switching partners as it has traditionally relied on Microsoft for a good portion of its business technology needs. The companies also collaborated on Ford's car software system, called Sync.
“We've had a great relationship with Microsoft,” said David McClelland, Ford's vice president of strategy and partnerships. “They helped us with Sync. They will continue to help us in the short term. We are creating this much more complete relationship with Google ”.
A sign, therefore, that in the future Ford prefers to focus on the Mountain View giant rather than the historic Microsoft customer.
Google will contribute dozens of engineers to the innovation team to help Ford explore the digital services it can develop for consumers.
ANDROID ON FORD CARS
The Android operating system will allow drivers and passengers to use the Google Assistant's voice recognition technology, Google Maps and apps in the Play Store. Ford said it will continue to offer customers the ability to use Amazon's Alexa voice assistant and Apple's CarPlay system.
AS ON VOLVO, GENERAL MOTORS AND RENAULT-NISSAN-MITSUBISHI
The partnership is a bang for Google, which is expanding the number of major carmakers to its stable of customers using Android in its vehicles. Ford joins Volvo, General Motors and Renault-Nissan-Mitsubishi alliance.
GOOGLE'S STRATEGY
It is also an opportunity for Google to expand its position in cloud computing. But the tech giant headed by Sundar Pichai will have to continue amassing these kinds of customers to capture cloud market leaders Amazon.com and Microsoft.
EARN CLOUD MARKET SHARE FROM AMAZON AND MICROSOFT
Google currently has a 5% market share and is squeezed by Amazon and Microsoft, which hold 45% and 18% of the market respectively, according to 2019 data.
HOW DOES THE CLOUD BY BIG G
Meanwhile, last week Alphabet (owner of Google) announced how much its cloud business bills, for the first time.
Google's cloud business generated $ 13.06 billion in revenue and recorded an operating loss of $ 5.61 billion in 2020.
As CNBC points out, the unit's losses appear to be increasing as the company invests heavily in sales staff. The company said the cloud drive lost $ 4.65 billion out of $ 8.92 billion in revenue in 2019 and lost $ 4.35 billion out of $ 5.84 billion in revenue in 2018.
A cloud in light and dark therefore for Google.
Google Cloud has grown by 46% but it has also recorded operating losses over the past three years. What is certain is that Google is investing heavily in its cloud business.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/cloud-google-strappa-ford-al-rivale-microsoft/ on Fri, 12 Feb 2021 09:12:52 +0000.