Ford+Microsoft: Will the Sync Swim?-- by Nate Winter

Ford and Microsoft have just released details of their joint venture developing a vehicle communications system that will allow passengers to use cell phones, MP3 players and other devices through the on-board, voice-activated system known as Sync. Starting with the 2008 Ford Focus due out later this year, Sync will become a standard feature across all Ford models.

In my post from January 11, 2007 entitled, “Whooooaaaaaa, iPhone,” I looked at how the iPhone stacks up against the track record of other products based on technology convergence. From Al and Laura Ries’ The Origin of Brands, convergence is the idea of combining multiple technologies into one device, vehicle, machine, etc. The Rieses argue, with much historical evidence, that convergence products are almost universally guaranteed to fail unless they offer an unusual convenience factor.

At first glance Sync seems to be the latest in a long line of convergence products like the iPhone, combining the capabilities of multiple devices into a single device. However, I contend that Sync is not, in fact, a product based on technology convergence—not completely, anyway. While Sync does seek to provide a single interface for using multiple technologies in the car, the key differentiating factor is that Sync does not attempt to replace any of the owner’s existing gadgets.

The iPhone, for example, attempts to become a user’s default cell phone, MP3 player, mobile web browser, and personal organizer replacing any competing products the user might already have. Sync, on the other hand, is a unified interface for existing products and not a replacement at all. In fact, individual tech components like the cell phone, PDA, and MP3 player are integral to the Sync system. Based on information released thus far, Sync is completely useless without these items.

Sync is an accessory like many others for cell phones, MP3 players, and PDAs. Sync just happens to be a single accessory intended to work for all three. iPhone is a swiss army knife; Sync is a tool box.

The fact that Sync is a new technology based on the use of existing components is a true strength, one that avoids the curse of convergence. The challenge Sync faces is in the user interface. This is where Sync will succeed or fail.

Sync relies heavily on voice activation and text-to-speech technology, the former allowing users to give commands to the system while the latter allows Sync to read aloud text messages, song titles, and address book items to the user. Cell phones have maintained these capabilities for a few years, but the accuracy of voice activation and recognition has been cumbersome. While this technology is continually improving, the fastest and most reliable way to do anything with a cell phone is still to push the buttons and use the graphic user interface. Reliable hands-free and eyes-free use of any technology remains elusive. In order for this feature to live up to the hype, it will need usability that is beyond anything consumer electronics has seen to date.

Curious Partnership
Ford’s partnership with Microsoft is an interesting choice. While Ford undoubtedly likes the idea of a Microsoft partnership to lend credibility to the Sync technology, ironically, Windows isn’t exactly known for its ability to interface easily with peripheral devices. That’s a Mac quality. In fact, none of the products that Sync was created to integrate (cell phone, PDA, MP3 player) speaks to Microsoft’s core competencies of desktop operating systems and office productivity software. The Windows Mobile OS is fairly well known, but by no means the industry standard for PDAs and smart phones. And Microsoft’s Zune portable media player is not exactly a break away success either. Nonetheless, the collaboration of Ford and Microsoft is sure to gather continued media attention and become a factor in the buyer decision process.

In addition, the partnership has the potential for serious benefits to the long term agendas of both companies. Microsoft is constantly looking to expand its reach in consumer electronics for the reasons I outlined in my December 26, 2006 post, “Zune vs. iPod: The Battle for Home Domination.” While that post dealt with standards and systems inside the home, the same rules apply to the car as the expectation of perpetual access to music, video, and other media increases. Microsoft will continue to develop technology for networking and media in the automobile and attempt to make its applications and proprietary file types the standard.

Sync satisfies Ford’s need to compete with GM’s OnStar, a thorn in its side since the late ‘90s. Although to make up ground, Ford needs a quick home run with Sync, as the auto maker’s exclusive deal on the technology expires after 2008.

OnStar’s Shadow
AdAge.com’s article on the Sync announcement cites one source who suggests that “Sync could signal the beginning of the end for GM's OnStar communications system.” I’m not convinced.

Sync seems to match up with OnStar only in terms of OnStar’s hands-free calling feature, which Sync appears to have bested. But when it comes to matching OnStar’s emergency contact service, 24-hour live operators, satellite GPS, and vehicle diagnostics, Sync’s parities are absent. A notable advantage for Sync is that its system is not subscription-based, a key benefit for those wary of monthly fees. However, when it comes to peace of mind and the ability to have a live operator save the baby you locked in your car, a monthly subscription is not prohibitive. For right now, the technologies are not similar enough to truly compete. Until OnStar steps up its peripheral device integration or Sync expands into remote vehicle concierge, it's pretty much apples and oranges. And in 2009, Sync (or something better) will undoubtedly be offered by all the major auto makers and the choice won’t be mutually exclusive anyway.

Until then, I expect the two technologies to stratify the market with young professionals and more tech-minded people opting for Sync with Ford's Fusion and smaller cars, while families and those looking for white glove service will stick with OnStar in GM's Cadillacs and larger SUVs.

--Nate Winter