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Sun Microsystems Executive Says Free Networked Cars Are on the Horizon

Posted on: Monday, 28 June 2004, 06:00 CDT

Jun. 29--People are used to the idea that they can get a free cell phone by signing up for a service contract. But how about a free car?

Sun Microsystems President Jonathan Schwartz predicted Monday that the day is near when car makers will give away an automobile if consumers sign up for a subscription to networked services powered by Sun's Java software.

"The auto industry is the next multibillion-dollar Java opportunity," said Schwartz in a speech at Sun's JavaOne conference in San Francisco. He noted that BMW already is selling its 700-series models with on-board navigation computers that use Java.

Java is Sun's programming language that allows developers to write a program once and theoretically make it run on any computer operating system.

Schwartz acknowledged that the idea of giving away cars sounds far-fetched. But he noted that five years ago no one believed that consumers could get a Java phone for free in exchange for signing up for a service contract. Telecommunications carriers have handed out more than 350 million Java phones.

Giving away cars can happen, Schwartz insists, once they become networked for data services like cell phones have become. He said that downloading ring tones onto cell phones is a $3.5 billion industry, fueled by teens who see it as a cool way to personalize their gadgets.

In time, Schwartz predicted 17-year-olds would drive a similar market downloading "horn tones." That drew laughs from the thousands of software developers listening to Schwartz. "That's the same reaction we got with the car companies. Over time, the laughter died down and the room got quiet," he said. "Do you know a 17-year-old who would pay $5 for a new tone for his horn?"

Schwartz was then joined on stage by a Siemens executive who demonstrated a Siemens car navigation system in a new BMW 600 series model. The system uses Java to download new applications and allows the driver to use voice commands to retrieve local driving directions or call home.

"This is not pie in the sky anymore," said Roland Busch, CEO of Siemens VDO Automotive AG.

BMW began selling models with the car navigation system in Japan last October and worldwide in January. Busch predicted that most mainstream automobiles will have car navigation systems like the BMW models in two years. But don't expect to get your free BMW tomorrow. "That is a really long-term perspective of what will happen," Busch said. "It won't be overnight."

Schwartz said he asked an auto executive how much in service fees would be needed to give away a car. The executive said a $225 monthly fee would amount to the same fees the industry collects for leasing cars. Schwartz said that other services would likely appeal to passengers, such as viewing movies or music on demand and finding gas stations or restaurants.

He stressed how well the free model has worked for the cell phone industry and says that Sun is adopting the same model for selling its computer servers. The company has begun giving away low-end servers to developers who pay $1,499 a year for Sun's software development tools.

Sun on Monday also unveiled a new version of Java, code-named Project Tiger, which makes it easier to use for software developers. Tiger is due for general release this fall.

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SUNW, BMW, SI, SIE,

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