New Mega Client Secured for Google’s Cloud Business
The deal is a part of Ford’s $11 billion business revamp and aims to streamline the automaker’s operations. Over the past couple of years, the company has invested hundreds of millions of dollars in those systems.
On the other hand, Google gained a new major customer for its cloud computing business, which is falling behind Amazon and Microsoft in terms of market share. The deal indicates how the tech giant intends to utilize mobile dominance to help grow its cloud business.
From 2023, Ford and Lincoln cars will be using Android, Google Assistant, Google Maps, and Google Play starting in 2023, as well as other Google cloud services. More specifically, the company plans to use Google’s cloud to establish a system that will allow sending customer messages about maintenance or trade-in opportunities.
“As Ford continues the most profound transformation in our history with electrification, connectivity and self-driving, Google and Ford coming together establishes an innovation powerhouse truly able to deliver a superior experience for our customers and modernize our business,” said Jim Farley, president and CEO of Ford, before adding that the deal is worth “hundreds of millions of dollars.”
Since the deal is not exclusive, both companies are allowed to use other clouds as well.
The tech giant will also provide artificial intelligence (AI) services to the car-making business to help in other areas, including supply chain logistics and manufacturing, the companies said. The deal marks the latest change under the company’s new chief executive Jim Farley, who has initiated the restructuring plan since his appointment in October.
“From the first moving assembly line to the latest driver-assist technology, Ford has set the pace of innovation for the automotive industry for nearly 120 years. We’re proud to partner to apply the best of Google’s AI, data analytics, compute and cloud platforms to help transform Ford's business and build automotive technologies that keep people safe and connected on the road,” said Sundar Pichai, CEO of Google and Alphabet.
General Motors, one of Ford's main competitors, also uses Google’s voice assistant and app ecosystem in its vehicles after signing a deal with the tech company in 2019.
The US carmaker Ford signed a six-year deal with Google, which will make the tech company responsible for Ford’s in-vehicle connectivity. The deal is worth “hundreds of millions,” according to the company’s CEO Jim Farley.