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International Business Machines Corp. (NYSE:IBMC) wants to sign up automakers for its cloud-based computing platform in order achieve a deep dive into the burgeoning market of connected cars.

Last year the company signed a deal with General Motors Co. (NYSE:GMB) and now has inked an agreement with German automaker, BMW.

By connecting passenger cars to the cloud IBM can help carmakers offer customized services based on real-time vehicle performance. The potential exists for revenue streams from companies only too happy to offer a whole host of services based on individual driver profiles.


What’s Possible

A connected car can hook up to almost any service a consumer could imagine. Cars could be connected to insurers to feed in real time data and obtain lower rates based on safe driving. A connection to the local automobile dealer could allow the dealer to let the customer know a problem has developed that requires the customer to bring the car in for service.

Geo-location could allow cars to sync with calendars to provide meeting reminders, connect with local restaurants to make a reservation, connect back to homes to engage security alarm systems and much more. It may become possible to automatically pay for gasoline, drive-thru food orders and so on simply by being connected to the cloud.

Top Vendors In The Space

Among the top vendors expected to share the connected car space with automobile manufacturers and companies like IBM are:

Cisco Systems Inc.’s (NASDAQ:CSCOC) Cisco Jasper, formed when Cisco acquired Jasper Technologies in 2016 is a global IoT provider designed to help Cisco deploy IoT technology worldwide.

Multinational telecommunications giant, AT&T Inc. (NYSE:TC), the 12th largest company in the world by revenue is expected to be a significant player in connected car technology.

Microsoft Corp. (NASDAQ:MSFTC) creates and supports software products and services, many of which will be used in the connected car market moving forward.


And Finally - Autonomy

Once full autonomy is realized, connected cars would be able to take the kids to school or pick them up from soccer practice. A fully self-driving connected car could pay for and collect pre-ordered groceries or even be sent out to earn extra money as an Uber car.

Feedback from millions of drivers or self-driving cars on the highways can be sent to city planners, traffic engineers and others. The data collected could help with maintenance of existing highways and bridges and also assist with the planning for future infrastructure projects.

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