In car systems are a tad more then just a complex CD-MP3-DVD&Naviagtion player. It’s probably even more important then your engine as that won’t budge if the system says so. And technology, not unlike your smart device, is getting more and more connected, including the possibility to update your software over the air. A smart move if you are a car manufacturer with a serious dislike of the costs and loss of face if you have to recall cars so they can be updated. One of the major players in this field is Arynga.
Their CEO, Walter Buga, was invited by Citi Research to deliver a presentation on “MONETIZING THE CONNECTED CAR” at the 2013 Connected Car Symposium Conference. To an audience of automotive industry veterans, innovators and industry leaders like Philip Abrams, Chief Infotainment Officer for General Motors Walter gave a compelling presentation. You can get this presentation at Arynga’s Slide Share Account.
On December 18th, 2013, the day after the conference ended, CITI Research group released a report titled “Qualcomm and Garmin Exposed to the Connected Car Mega Trend, But Other Themes Are More Likely to Move Both Stocks.” Below is a short statement from the report describing Walter’s involvement and the future of the telematics industry:
“On Tuesday December 17th, we co-hosted the Citi Connected Car Symposium which followed a four-part “Rise of the Connected Car” series by Citi Autos Analyst Itay Michaeli. He is describing a growth of vehicles equipped woth telematics equipped to rise to over 40% by the end of the decade. Most important benefits will be the means of increasing monitoring of vehicles for car-diagnostics, connectivity and infotainment. Philip Abrams, Chief Infotainment Officer for General Motors, participated in the event, as well as Dr. Walter Buga, CEO of QCOM-funded Arynga, which is introducing a vehicle software management system allowing OEMs to remotely update vehicle software/ firmware.
Two companies in our coverage, Qualcomm and Garmin, are positioned to define (and grow with) the connected car; however, the connected car theme remains peripheral to our investment theses on both names. At the Qualcomm Analyst Day, Paul Jacobs, CEO, made bullish comments about the potential for the connected car: “It’s pretty clear that the cars are going to have their own connections for providing services to the drivers and the passengers and will provide maintenance information and information about the fleets of cars to the manufacturer.”
Source: “Qualcomm and Garmin Exposed to the Connected Car Mega Trend, But Other Themes Are More Likely to Move Both Stocks”, Citi Research, Ehud Gelblum et al, December 18, 2013.
Given Arynga’s place in the automotive industry, the company is currently in the perfect position to assist big names in their efforts to revamp their software management and application strategies. An assistance that will become necessary if manufacturers to keep up with the afore mentioned type of growth! The Citi report uses Arynga’s product CarSync as a near perfect example of things to come: Describing how Arynga is introducing a vehicle software management system allowing remote updates of vehicle software and probably firmware.
CarSync has transformed the way manufacturers will update the systems that will be embedded in near future vehicles. It will reduce the need for time consuming updates at the dealer through efficient, Over-The-Air (OTA) updates! OEMs will see endless benefits in the form of reduced costs of handing out warranty and recall costs. As more and more problems appear to be a form of software glitches or electronic defects, useful data, quite likely based on full time monitoring, will enable producers and dealers to deliver better services and get a better insight in how a vehicle will be used, including the drivers’ and passengers’ preferences. And of corse there will be an increased customer satisfaction with up-to-date vehicle applications, and less unexpected visits to the dealer to receive software upgrades!