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Old 17th April 2023, 18:07   #1
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Mercedes CEO: We are on our way to becoming a software company

Ola Kallenius, CEO of Mercedes-Benz, recently stated that the company is on their way to also becoming a software company. The German carmaker wants to put "supercomputer-like performance" into every single Mercedes, allowing customers to stream movies, play games and get on a Zoom call via a set of displays that span the entire dash.

Kallenius stated that the company is working with various partners to offer a myriad of features and services. This includes more infotainment options via large screens running the brand's proprietary MB.OS platform. The new in-house operating system is said to debut by the end of 2024 and will help make in-car technology better over time. The OS though does use technologies from partners like NVIDIA and Google Maps.

Mercedes CEO: We are on our way to becoming a software company-mercedeseqs5804matic.jpg

Markus Schafer, CTO of Mercedes-Benz, stated that the company is deliberately moving away from making the car's infotainment an extension to users' phones. He added, "the goal isn't to mirror a user's phone, but to offer a great customer experience so there's no need to plug in a device."

Future Mercedes cars will come with an entertainment centre with access to gaming, social media, video conferencing and many other third-party apps. This is said to be via giant pillar-to-pillar screens and separate displays for passengers with privacy technology.

Reports state that while the EQ range already comes with the brand's hyperscreen, it will soon trickle down to Mercedes' ICE-powered cars as well, along with the proprietary MB.OS platform.

Source: Robb Report

Link to Team-BHP news
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Old 17th April 2023, 18:17   #2
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Re: Mercedes CEO: We are on our way to becoming a software company

So what about the ‘driving’ then, if one is going to be sitting in what seems to be more of a mobile ‘gold class’ cinema theatre?
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Old 17th April 2023, 18:21   #3
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Re: Mercedes CEO: We are on our way to becoming a software company

Very true assessment. The modern EVs = less mechanical+ more calibration/logic

That is also valid with almost all component manufacturer providing parts for EVs. Mechanical parts in EVs need sophisticated level of integration on logic (Software) side.

Moreover many components (Tier 1/2/3) are supplied to a module integrator (becomes module Tier1) as systems are needed to work aa a module to have better controls on execution of the logics. Almost all cooling circuit or refrigerant circuits are now connected to have a efficient thermal management and similar things are applicable for power electronics as well. Then things get multiply if you think of other features- ADAS, Infotainment, connected techs etc.

Last edited by UD17 : 17th April 2023 at 18:23.
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Old 17th April 2023, 18:50   #4
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Re: Mercedes CEO: We are on our way to becoming a software company

Software business is usually a Winner takes it all business. There is nothing wrong in Mercedes-Benz to develop this new pie and monetize their new cars for entertainment and other value added services.

However, there will be too many moving parts in this software story. The content creators/providers like Netflix and other media companies, platform/OS providers like Google and Apple, Internet providers with 5G/4G or even better 6G, App Store vendors, Hardware players, System Integrator companies, cyber security companies etc.

Mercedes-Benz will fill the role of Systems Integrator. Now integrating these multiple moving parts into a killer solution is going to be tough. But who knows, only when OEMs try their best, we will know.

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Old 17th April 2023, 19:23   #5
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Re: Mercedes CEO: We are on our way to becoming a software company

I'm pretty sure they would've thought through the whole scenario of distracted drivers with the availability of all these apps. I assume they're preparing for a future where they want to be the leaders in the entertainment experience when driverless cars are the norm.

Pretty visionary but enthusiasts are going to be the most disappointed lot.
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Old 17th April 2023, 19:29   #6
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Re: Mercedes CEO: We are on our way to becoming a software company

If you can look at analogy to this, the network equipment vendors provided the technology intensive infrastructure (with advanced physics/math and what not) The content creators (including phone OS companies) used this to rake in multiple times the revenue/profit.

I think MB wants to own the software infrastructure in addition to the actual car so that they are part of the complete thing.
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Old 17th April 2023, 23:36   #7
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Re: Mercedes CEO: We are on our way to becoming a software company

"allowing customers to stream movies, play games and get on a Zoom call via a set of displays that span the entire dash."

If I had read this in isolation I would have probably guessed this to be a statement to have come from some wannabe brand screaming to get noticed. What's wrong with Mercedes? or have I become too old and disconnected with the young market Mercedes is trying to attract. Time will tell.
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Old 18th April 2023, 08:47   #8
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Re: Mercedes CEO: We are on our way to becoming a software company

Quote:
Originally Posted by soarersc300 View Post
"allowing customers to stream movies, this to be a statement to have come from some wannabe brand screaming to get noticed. What's wrong with Mercedes?
I heartfully disagree here. Mercedes has a legacy built on industry first technologies and they are still continue to do so in many areas of ICE/EVs, so they would be the last one screaming to get noticed.

Coming back to statement, all they want to say is that the Electrification and connected tech make it imperative for traditional mechanical engineering driven companies to invest and adopt the software part in a big way.

I can give 1st hand example of changes in my organization in just 5 years:
2018: Approx. 450 R&D engineers: 80% are mechanical engineers
2023: Approx. 480 engineers: 35% are mechanical/Mechatronics, Rest are embedded software designer (20%)+application developer (15%)+ electronics engineers (25%)+ Chemical/others 5%
2025: We would see further reduction in Mechanical engineer for sure.
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Old 18th April 2023, 10:10   #9
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Re: Mercedes CEO: We are on our way to becoming a software company

People are going to compare the features and ease of operation of the in house operating system with that of Android and iOS. Not only it has to be better and they have to keep pace with the improvements of the popular OSs. Obviously this is going to be a very costly proposition.

If I can figure this out in a second, I am pretty sure that people at Mercedes would have thought about this and figured out some solution for this. Let us hope we all will be pleasenty surprised with the result
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Old 18th April 2023, 15:29   #10
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Re: Mercedes CEO: We are on our way to becoming a software company

Quote:
Originally Posted by UD17 View Post
Coming back to statement, all they want to say is that the Electrification and connected tech make it imperative for traditional mechanical engineering driven companies to invest and adopt the software part in a big way.
I completely agree and we all are noticing how most leading automobile companies are also becoming software companies, no two ways about it.

I was only highlighting one statement, that to if I had read it in isolation. Just to elaborate further - Kallenius is talking about playing video games / movies or having zoom call meetings while sitting in the driver / passenger seat (rationally assuming rear passengers don't get good visibility of the dash)

Also I ended my comment stating maybe its just me, and that today's youngsters want to watch movies sitting in the drivers seat and that is what is going to attract them to brand Mercedes. So maybe time will tell, that's what the future may look like. But for me personally it doesn't make any sense.
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Old 18th April 2023, 18:13   #11
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Re: Mercedes CEO: We are on our way to becoming a software company

Looks like the penchant for virtual entertainment has no bottom. Homes and dedicated places are not enough, now we want screens and movies while travelling, will humans eventually move away from real entertainment.

I thought a nice sound system, smooth revving engine and beautiful scenery in a sunny, rainy day was in itself an entertainment. How could virtual excitement match the real one, I never watched a movie in a bus if i had a window seat.

In commercial flight I can understand it makes no point peeping through someone shoulder looking outside,but something as personal as a car, window itself is diversion now how could anyone get further diverted.
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Old 18th April 2023, 21:34   #12
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Re: Mercedes CEO: We are on our way to becoming a software company

If car infotainment becomes an extension of phone, Android or Apple, where is the money in it for the car manufacturers? We'll, apart from the one time profit earned at the time of car sale.

With own OS, entertainment suite, gaming suite and so on - you immediately have a possibility of an apps ecosystem. Voila! That means money for Mercedes, even after selling the car. Considering premium brand position, the premium customers will also pay for additional 'software' features, entertainment packages, customisation packages and what not. The possibilities of making money can be stretched as per anyone's imagination.
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Old 18th April 2023, 21:36   #13
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Re: Mercedes CEO: We are on our way to becoming a software company

If car infotainment becomes an extension of phone, Android or Apple, where is the money in it for the car manufacturers? Well, apart from the one time profit earned at the time of car sale.

With own OS, entertainment suite, gaming suite and so on - you immediately have a possibility of an apps ecosystem. Voila! That means money for Mercedes, even after selling the car. Considering premium brand position, the premium customers will also pay for additional 'software' features, entertainment packages, customisation packages and what not. The possibilities of making money can be stretched as per anyone's imagination.
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Old 18th April 2023, 22:28   #14
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Re: Mercedes CEO: We are on our way to becoming a software company

Sooo... what's AMG gonna stand for? Automotive movies and games?
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Old 19th April 2023, 16:41   #15
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Re: Mercedes CEO: We are on our way to becoming a software company

any one how things this is a joke for what ever reason please consider reading seminal article by Marc Andreessen
https://a16z.com/2011/08/20/why-soft...ing-the-world/

Article is a decade old BTW.
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